Kazi Zahidul Hasan :
The value of transactions made through mobile financial service (MFS) has touched a record high of Tk 3,69,686.6 crore during the January-June period of this calendar year, rising 51 per cent from the corresponding period of last year, according to the latest data of Bangladesh Bank (BB).
The BB data shows the value of money transfer through MFS in June reached Tk 62,993.9 crore. Besides, the total amount of payment made on MSF platform in May stood Tk 71,246.9 crore, Tk 63, 44,1.2 crore in April, Tk 59,642.4 crore in March, Tk 55,055.1 crore and Tk 57,289.1 in January.
During January-June last year, Tk 2,44,457 crore was transacted through the digital platform.
“There has been a phenomenal growth in mobile money transfer. It happens because people switched to digital payment system due to restriction on movement during the Covid-19 pandemic,” Md Serajul Islam, a spokesperson for the central bank, told The New Nation yesterday.
“Besides, the digital payment method that facilitated to channelize inward remittance, disbursement of workers’ salaries and government’s cash assistance to poor families hit by the coronavirus pandemic has further influenced the transactions,” he added.
During the January-July period of this year, individuals transactions’ through MFS stood Tk 1,10,872.8 crore, merchant payment Tk 15,457 crore, utility bill payment Tk 5,821 crore, salary payment Tk 14,058 crore and government fund disbursement (under social safety-net programmes and cash assistance programme) Tk 4,021 crore, according to the BB data.
Bangladesh launched mobile money service in 2011 under the central bank’s financial inclusion programme. As of June this year, the total number of MFS account, including agent and personal, stood 10,12,40,617.
Of the total, 5,93,96,803 accounts are being held by rural population and 4,14,83, 814 by urban population, shows the BB data.
“Mobile money transfer is the most exciting development in the recent years. The digital payment system is gaining momentum in Bangladesh taking advantage of consumers’ changing lifestyle. Transaction through MFS witnessed a dramatic increase during the first half of this year when consumers used to channel cash though the service to avoid physical contract on worries over catching coronavirus,” said noted economist Dr Ahsan Mansur.
He added people are now using the service for making payment from groceries to business transactions. “Moreover, MFS makes transaction services hassle free. Besides, it creates the opportunity to serve unbanked (without having to have a bank account) population.”
Dr Mansur, the incumbent chairman of BRAC Bank, also said that more than 50 million people are now using mobile financial services offered by 18 banks. “But it is not far way when all the people of Bangladesh will use the service,” he added.
Earlier, US-based Global Market Insights, in its report, said that mobile wallet market in Bangladesh is expected to grow from over US$ 100 billion in 2017 to US$ 250 billion by 2024.
At present, bKash, the country’s first MFS provider, has the lion’s share of the market at 48 per cent, followed by Nagad and Dutch Bangla Bank’s Rocket with 28 per cent and 21 per cent market shares, respectively.
