Mobile Financial Service (MFS) transactions dropped by 25 per cent to Tk 98,306 crore in July this year, compared to Tk 1,32,175 crore posted in June, Bangladesh Bank data show.
Eid was celebrated last June, and MFS transactions usually drop after the month of the Eid, industry insiders say. It should be noted that such transactions were the lowest in July, only falling behind February.
MFS companies offer various promotions and incentives around Eid and other festivals, leading to higher transaction volumes during these periods compared to other months.
Bkash has put in place innovative technologies and services and formed partnerships with various financial institutions.
Nagad, a majority of which is owned by the government's postal department, is now placing emphasis on resolving merchant and other payment issues. It is offering cash back and discounts.
Person-to-person MFS transactions stood at Tk 27,913 crore in July this year, which was Tk 33,923 crore in June. Salary disbursement through MFS stood at Tk 1,566 crore in July, which was Tk 5,187 crore in June.
Inward remittance transactions through MFS stood at Tk 482 crore in July, compared to Tk 635 crore in June.
Speaking to The Business Post, economist AB Mirza Azizul Islam said, “MFS transactions declined because Eid was in June. Usually, MFS cash transactions rise significantly on the month of Eid, and then fall after the celebration.
“Besides, inflation rose in recent times. This is another reason behind the reduction in MFS transactions.”
