The volume of transactions through the mobile financial services declined in April after a surge in the previous four months.
According to Bangladesh Bank data, the amount of transactions dropped to Tk聽1,44,929 crore in April compared with that of Tk聽1,53,758 crore in March.
April鈥檚 transaction amount included Tk 41,796 crore as cash-in, Tk 46,987 crore as cash-out, Tk聽37,904 crore as person-to-person transfers, Tk聽6,613 crore as merchant payments, Tk聽959 crore as government-to-person transfers, Tk聽4,498 crore as salary disbursements and Tk聽2,676 crore as utility bill payments.
Customers also purchased talk-time worth Tk聽1,203 crore using MFS in April.
The number of mobile financial service accounts increased by 2.6 crore over the year to 22.7 crore in April 2024 compared with that of 20 crore in the same month in 2023.
Of the total number in April, 9.9 crore accounts were in urban areas and 12.7 crore in rural areas.
The decline in MFS transactions in April, after a robust growth in the previous four months, was attributed to sluggish activities after Eid-ul-Fitr, one of the biggest religious festivals of the Muslims, which was observed in the country on April 11.
Despite this dip, the overall trend in MFS transactions remained positive as customers increasingly utilise MFS for various payments due to its convenience within a growing digital financial ecosystem.
Transactions rose from Tk聽96,132 crore in December 2022 to Tk聽1,24,548 crore in December 2023 and reached Tk聽1,44,929 crore in April 2024.
The introduction of new services by operators has driven this growth, reflecting a shift in consumer behavior towards digital transactions, accelerated by the Covid-pandemic, which boosted the popularity of online purchases and MFS.
Inward remittance through MFS channels has also been growing, with the government providing cash incentives to attract more remittance.
In April 2024, inward remittance disbursed through MFS channels amounted to Tk聽856.4 crore. The e-money balance for the month was Tk 12,132.4 crore.
Furthermore, disbursements of government stipends, contributions and private-sector wages through the MFS have contributed to the sector鈥檚 growth.
MFS customers can now make a wide range of payments, including utility bills and talk-time purchases, and can easily add or deposit money into their MFS accounts from different bank accounts.
Additionally, customers can now pay street vendors, known as micro-merchants, from their MFS wallets, representing a significant development in the MFS ecosystem.
In response to widespread adoption, the Bangladesh Bank has raised the transaction limit through MFS. Some MFS operators have offered discounts for shopping payments using their services.
MFS began its journey in 2011 with the launch of Rocket, Dutch-Bangla Bank鈥檚 mobile financial service.
Currently, 13 MFS operators provide services, with bKash, Nagad, Rocket, Upay, mCash, and SureCash being the major market players.
