Economic Reporter :
Bangladesh cashless journey got extra momentum in the recent pandemic days thanks to higher transactions through mobile financial service (MFS) channels, central bank officials said.
Bangladesh Bank data shows that the number of total transactions through 15 MFS operators jumped by 23.24 per cent over the year to 30.72 crore in March, 2021 when the government reimposed country-wide lock down after the second wave of deadly corona virus.
The number of transactions through MFS channels increased manifold since April after the government imposed fresh lockdown following a staggering rise in Covid-19 cases and deaths.
“If you compare the annual growth trend of these transactions, the transactions through MFS channels market astronomic rise over the years as people found this MFA tool as an inevitable tool to survive in pandemic situation”, a SEO of a leading commercial bank said.
Despite the significant drops in government’s payment- 79.2 per cent, central bank data shows, MFS transactions marked robust growth in utility bill payment- 22.8 per cent, cash in transactions- 14.3 per cent, cash out transactions-9.9 per cent, merchant payments 4.4 per cent and p2p transactions- 4.2 per cent in March.
“In this pandemic time, most people used bkash and other MFS operators to meet their immediate payment needs like buying foods and goods, utility bill payment, remittance receipts and other payments, which has given extra momentum to cashless drive in pandemic pushed up MFS transactions significantly”, he said.
“I use bKash to buy essential goods as it helps me to make payment without direct contact from my home” said Shila Rahman, a college teacher residing at Shantinagor, Dhaka.
“bKash app is super user friendly. It no longer requires me to record my spending manually and I can keep track of all my transactions on the app,” she said.
Transactions of internet banking amounted to Tk10,371.1 crore in March this year, up 57.42 per cent year-on-year as people are getting used to digital banking instead of physically visiting bank branches.
The amount of internet banking transactions was at Tk6,588.0 crore in the same month of last year. Most internet service providers and shops accept payments through MFS channel like bKash app, which has won the country’s Best Brand Award in a consumer survey conducted by Bangladesh Brand Forum.
Since Covid-19 hit the country, commercial banks have been engaged in e-commerce or related online activities after the government slapped lockdown-like restrictions in the wake of the deadly second wave that caused an alarming spike in Covid-19 infections and deaths.
The MFS has given extra momentum to the cashless drive in the recent Eid festival observed across the country this month. Millions of people spent millions of taka in Eid shopping and received foreign currencies as remittance from their relatives living abroad.
And a large number of these people used MFS like bKash to make payment in those pandemic days. On an average, transactions worth Tk. 1,038 crore are made through MFS accounts, about 60% of them in rural areas, said the data of Bangladesh Bank (BB).
Most banks have joined hands with bKash to facilitate their customers digital shopping, send receive money quickly in their needs at affordable cost. As a result, digital banking transactions of some banks shot up nearly double in recent times. For example, Brac Bank recorded 42 per cent growth in its digital transactions from 16-17 per cent in 2020.
Another reason for such growth is donation and Eid money are now being sent through MFS tool. bKash officials said 7 lakh customers have donated worth 200 million Taka approximately to 50 organizations till now.
