Shamsul Islam, a student at Jagannath University, recalls the days when paying various university fees meant enduring long, tedious queues at the bank. The process was time-consuming and often frustrating, as hours could be lost just waiting for his turn.
However, Shamsul's experience has transformed dramatically with the advent of mobile financial services (MFSs). Now, he uses an MFS called Rocket to pay for his form fill-up, admission fees, and exam fees, completing the payment instantly with a few taps on his smartphone.
The rise of mobile financial services
This convenience is part of a broader shift in Bangladesh. When Rocket, offered by Dutch Bangla Bank Limited (DBBL), started its journey in 2011, its primary goal was to facilitate money transfers from one person to another.
Over the past 15 years, these MFS platforms have evolved significantly, becoming a cornerstone of financial inclusion in the country, expanding to include services like Nagad, bKash, Islami Bank’s CellFin, and mCash. Today, MFS platforms support a variety of transactions, including merchant payments, salary disbursements, bill payments, remittances, and more.
Growth in merchant payments
After analysing Bangladesh Bank data from the last five years, from March 2020 to March 2024, merchant payments through MFS in March 2020 were Tk 4,831 crore, which increased to Tk 7,121 crore in March 2024—a 47 per cent increase in just five years.
The central bank introduced a merchant payment system named The Bangla QR, an affordable digital payment system that allows customers to make purchases from small merchants by scanning a printed interoperable QR code, making the system so accessible that even roadside vendors can use it.
Expanding uses of MFS
People now use MFS platforms to pay both online and offline bills, covering a wide range of services such as merchant payment, mobile recharges, ride fare payment, salary disbursements and even government fees. This shift has significantly streamlined the payment process, making it more convenient for users to manage their financial transactions from the comfort of their homes or on the go.
“I use mobile financial services for almost everything,” says Farjana Rahman, a bKash user. “Nearly every restaurant accepts bKash, even pharmacies. I also top up my phone and pay ride-sharing service charges through bKash. It is very convenient for me,” she added.
During the Covid-19 lockdown, when almost every company stopped on-site working, many people, especially garment workers, had their salaries frozen. Then they were paid through MFS platforms. Salary disbursement through MFS platforms in 2020 was Tk 1,246 crore, which increased by 280 per cent in 2024 to Tk 4,745 crore.
Additionally, talk time purchases increased from Tk 504 crore in 2020 to Tk 1,079 crore in 2024, a sharp 114 per cent increase in five years.
Broader adoption across sectors
Beyond university fees, other bills like DESCO, DPDC, WASA, Titas, and almost every government agency including BRTA, BIWTA, and Bangladesh Railway, as well as exam fees for government exams such as BPSC, now accept MFS platforms.
In March 2020, only Tk 433 crore in utility bills were paid through MFS. This number increased to Tk 2,596 crore in 2024, representing a 500 per cent increase in five years.
The central bank allowed MFS providers to facilitate remittances for remitters and freelance workers as well. MFS usage has grown most significantly in remittances. In March 2020, Tk 32 crore came through MFS, which increased to Tk 814 crore in March in 2024—a staggering 2,443 per cent increase in five years.
This growth shows that people have become accustomed to using MFS for remittance transfers due to its ease of use. Moreover, person-to-person (P2P) transactions also increased significantly. In 2020, it was Tk 10,189 crore, which increased by 297 per cent to Tk 40,417 crore in 2024.
Future prospects
Shamsuddin Haider Dalim, head of Corporate Communications and PR at bKash, said, “The government plans to make 75 per cent of transactions digital by 2027. We have been providing services since 2011, for the past 15 years. bKash has played a significant role in the MFS sector due to government policy support, people's trust, and our ongoing efforts.
“We are constantly working to expand the digital transaction ecosystem with new services such as loan offerings and savings options. Moreover, partnerships with all the banks and financial institutions in the country have broadened our transaction capabilities. Financial inclusion is also gaining momentum.”
