Bangladesh is moving toward cashless payment.

Bangladesh is moving towards cashless payment. Bangladesh has one of the lowest rates of bank account ownership in the world. That with only 4% of adults holding an account. As a result, many transactions are made through cash on delivery and “hundi”. It is an informal system akin to hawala, which does not involve funds transfer.

Bangladesh was no different. The country was already making great strides in achieving a prosperous society. That time when the pandemic also speeds up the movement.

By June 2021, digital sales had doubled from 15 percent in March 2020 to 30-35 percent. While card usage increased five times from Tk 225 crore to Tk 1,250 crore over the same period.

Besides helping trade. Cashless payment have also helped the government. They provide financial security to those in need during the ongoing Covid-19 crisis.

The growing demand for offline credit cards, QR codes, and mobile financial services (MFS). They provide solutions for banking and small businesses. And, collab between MFS providers is some factor that increased digital payment growth.

Credit and Debit cards

According to Bangladesh Bank. Exchange rates started in November 2021. On the point of Sales (POS) machines using debit, credit, and prepaid cards. It increased by 23 percent compared to last year.

Today, increasing awareness through digital payments and networks. As well as banks offering special debit, credit, and prepaid payments. To people of all incoming groups, especially for thousands of years. They make the card culture popular and promote card growth.

Contact-less Cards

The epidemic also led to the rapid acceptance of payments without world connection. Many banks today are investing in building bases to meet the increasing demand for credit cards.

There are many aspects to this take. Most importantly, the ultimate risk of getting Covid-19 infection from money notes. They start providing a quick, seamless, easy way to do it.

In 2021, Mastercard saw the total number of card-based transactions. They increase by more than 30 percent worldwide. While the lack of communication as part of the total income increased from 50 percent to more than 100 markets.

It is true that PIN activities have a transaction limit. It has increased to Tk 5,000 by Bangladesh Bank. Raising it will give more acceptance to the idea of ​​building a society without money.

According to the central bank’s rules, transactions under the PIN. They are only possible with credit cards. However, it is important to enabling debit and debit cards in advance. When performing transactions without touch.

In addition, the government should allow fewer PIN transactions to ensure safety and hygiene. On debit and prepaid cards so that more people can receive payments without contact.

Mobile Financial Services

Bangladesh has over 170 million mobile subscribers and over 112 million online subscribers. MFS has the solution to digital debt repayment and online tax refunds. Also, as educational institutions’ registration, digital health services, and banking systems. MFS is another popular payment method that speeds up digital payments.

According to Bangladesh Bank, the transaction value for MFS in November 2021. It stands at around Tk 67,967 crore, an increase of Tk. 10,678 crore compared to January 2021.

Government debt and payments through MFS increased by 132 percent in October 2021. As compared to September at the beginning of the same year.

MFS providers like bKash and Nagad are very popular in small-scale manufacturing. Also in the small retailer sector.

Bangladesh Bank is launching a partnership between MFS providers. They are making these services more accessible.

According to a study. In 2020, 2 million active participants in the small business sector. This will make more than $ 18.42 billion a year. By 2023, the market is expected to grow to $ 3 billion.

QR codes

QR codes have also become a popular cashless payment method today. They are displayed by the merchant. Also, they make quick payments.

Banks and lenders rely exclusively on POS to access payment gateways. Through their credit cards or online banking applications.

Bangla QR is the latest central banking program. To bring the small business sector under the formal economy.

According to Central Bank Guidelines. Daily transactions up to Tk 20,000. This can make via Bangla QR.

A number of banks have already tested its effectiveness. According to major aggregators. And a few banks. The number of QR vendors is approaching 50,000. Cooperation between banks and MFS providers. They will increase the acceptance of Bangla QR.

In addition, to further increase the acceptance of digital payments in the country. Bangladesh Bank’s payment systems department has introduced Personal Sales Accounts (PRA) in 2020. To bring small, and medium retailers and service providers under the digital financial system.

Small retailers relied on finance to purchase their goods. And had no choice but to open trading accounts for small payments.

Leave a Reply

Your email address will not be published. Required fields are marked *

Bangladeshi Casino Sites
Daily 10% Deposit Bonus
VIP Point Exchange
Sign up and get ৳500 free Credit
No Deposit Bonus upto ৳ 20,000
Cashback Bonus Upto ৳500,000