How to Pay in Bhutan: The Ultimate Guide to Making Payments in Bhutan

Bhutan, the Land of the Thunder Dragon, is a dream destination for many travellers. With its breathtaking landscapes, rich culture, and deeply rooted traditions, a trip to Bhutan is truly an experience of a lifetime. But before you embark on your journey, it's essential to understand how payments work in Bhutan. Unlike other travel hotspots where cashless transactions dominate, Bhutan operates a little differently. So, let’s dive into everything you need to know about making payments in Bhutan!

Understanding Bhutan’s Currency

The official currency of Bhutan is the Ngultrum (BTN), abbreviated as Nu. The Ngultrum is pegged to the Indian Rupee (INR) at a 1:1 exchange rate, meaning 1 Ngultrum = 1 Indian Rupee. Interestingly, Indian Rupees (except for INR 2000 notes) are widely accepted in Bhutan, making it convenient for travellers coming from India. However, if you’re visiting from elsewhere, you’ll need to exchange your money for Ngultrum or rely on other payment options.

Payment Methods in Bhutan

1. Cash is King

While Bhutan is gradually moving towards digital payments, cash remains the most widely accepted form of payment, especially in rural areas and smaller towns. Many businesses, including local markets, small shops, and traditional eateries, operate on a cash-only basis.

• It’s best to carry small denominations (Nu. 50, Nu. 100) as getting change for larger notes can be tricky in smaller establishments.

• Indian travellers can use INR (except the INR 2000 note), but it’s still advisable to have some Ngultrum on hand.

• If you’re coming from other countries, exchange currency at Paro International Airport, major banks, or authorised money changers.

2. Credit and Debit Cards

The use of credit and debit cards is increasing in Bhutan, but it’s still not as widespread as in other destinations. Larger hotels, high-end restaurants, and souvenir shops in Thimphu and Paro may accept Visa and Mastercard, but American Express and other cards may not be widely accepted. However, the payment terminals may be disrupted occasionally, it's still best to carry cash with you.

• Card payments usually incur a surcharge of 3–5%, so factor that into your expenses.

• Make sure to inform your bank about your travel plans to avoid your card being blocked due to suspicious foreign transactions.

• ATMs are available in major towns, but they can sometimes be unreliable. Always carry backup cash.

3. Mobile Payments & Digital Wallets

Bhutan has seen a rise in digital payments, particularly with local mobile wallets such as mBoB, MPay, and ePay Bhutan. However, these are primarily used by locals and require a Bhutanese bank account to set up, making them less practical for international travellers.

International payment platforms like Google Pay, Apple Pay, and PayPal are not commonly accepted, so don’t rely on them for purchases.

4. Traveller’s Cheques and Bank Transfers

Traveller’s cheques are not recommended in Bhutan as very few places accept them. If you need to make large payments (e.g., for your tour package), bank transfers are a more reliable option. Your tour operator can provide their bank details for a direct wire transfer.