Mobile Financial Services (MFS) transactions achieved an all-time high of Tk 1.32 lakh crore in June this year, according to data from Bangladesh Bank (BB).
This marked a significant increase compared to the previous record of around Tk 1.25 lakh crore in April of the preceding year. The momentum continued as MFS transactions surpassed Tk 1 lakh crore again in January, March, and May of this year.
In June, the total transaction volume amounted to Tk 1,32,175.3 crore. Among these, cash-in transactions accounted for Tk 39,056.77 crore, while cash-out transactions reached Tk 37,707.68 crore.
Industry insiders attributed the surge in MFS transactions during June to the Eid-ul-Azha festival. People utilised MFS for purchasing essential items, sacrificial animals, and pre-Eid shopping, contributing to the uptick in transaction volumes.
Former National Board of Revenue chairman Muhammad Abdul Mazid commented on the rise in transactions during festivals, noting that digital transaction facilities are increasingly favoured for purchases.
He also mentioned the prevalence of digital payments during the purchase and sale of sacrificial animals during Eid-ul-Azha. Additionally, heightened household spending during festivals contributes to the increased transaction volumes during such periods.
Shamsuddin Haider Dalim, the head of corporate communications at bKash, the country's largest MFS company, highlighted that bKash had strategically established ample agent points in the digital cattle market this year.
This innovation eliminated the need for both buyers and sellers to handle physical cash, consequently boosting overall MFS transactions during June, he said.
Insiders from the industry noted that MFS companies offer various promotions and incentives around Eid and other festivals, leading to higher transaction volumes during these periods compared to other months.
MFS transactions see 23% growth in FY23
Analysing the latest BB data, it is evident that in the previous financial year, the country experienced a remarkable 22.96 per cent increase in total MFS transactions, rising from Tk 9,90,004 crore in FY22 to Tk 12,17,375 crore.
This surge was driven by increased usage in cash-out and cash-in transactions, as well as other categories like person-to-person (P2P) transfers, merchant payments, salary disbursements, and government-to-person transactions.
Particularly in the lead-up to the Eid festival, salary disbursements witnessed a remarkable 160% jump, reaching Tk 5,188 crore in June compared to May's figure of Tk 1,993 crore.
Additionally, merchant payments rose by 5.3 per cent to Tk 6,494.54 crore in June compared to May.
Shamsuddin Haider noted that people's habits are rapidly evolving as they embrace digital platforms. From day-to-day shopping to commuting, individuals are increasingly relying on digital services for transactions, where MFS plays a significant role. Responding to this demand, companies are stepping up their investments to expand their digital platforms.
