The volume of transactions through the mobile financial services increased in September for the second month.
According to Bangladesh Bank data, the amount of transactions increased to Tk聽1,45,067 crore in September compared with that of Tk聽1,37,920 crore in August and Tk聽1,22,922 crore in July.
September鈥檚 transaction amount included Tk聽41,694 crore as cash-in, Tk 45,381 crore as cash-out, Tk聽39,470 crore as person-to-person transfers, Tk聽6,588 crore as merchant payments, Tk聽48.45 crore as government-to-person transfers, Tk聽4,499 crore as salary disbursements and Tk聽3,240 crore as utility bill payments.
Customers also purchased talk-time worth Tk聽1,049 crore using MFS in September.
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.
MFS transactions were Tk 1,55,835 crore in June, but plunged in July due to countrywide protests over job quota reforms, which eventually deposed Sheikh Hasina as prime minister on August 5.
After that, business activities have begun to normalise gradually, leading a surge in MFS transaction in the following two months.
The introduction of new services by operators has driven this growth, reflecting a shift in consumer behaviour 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 September 2024, inward remittance disbursed through MFS channels amounted to Tk聽1,021 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 to or deposit money in 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 against shopping payments using their services.
The MFS began its journey in the country 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.
