In recent years, Bangladesh has taken significant strides towards becoming a cashless economy. From digital wallets to QR payments, the way people transact is rapidly evolving. Mobile Financial Services (MFS) such as bKash, Nagad and Rocket have become household names, reshaping financial habits across urban and rural areas alike. As of January 2025, MFS transaction volume has reached a staggering Tk 1.72 trillion per month, with over 239 million registered accounts. This shift is driven by the convenience, speed, and safety that digital payments offer.
The COVID-19 pandemic accelerated digital adoption, forcing businesses and consumers to move away from cash. Today, digital transactions make up over a quarter of all banking activity in the country. With a growing young population and increasing smartphone penetration, the momentum for a cashless transition is strong. Even in remote villages, MFS agents provide services that were once limited to physical banks.
However, the challenges are still there. A large portion of the population still lacks the digital literacy needed to confidently use financial apps and internet access remains limited to rural and low-income areas. Additionally, concerns about cybersecurity, fraud and data protection continue to grow. According to the Transparency International Bangladesh, over 6.0 per cent of MFS users have experienced financial losses due to fraudulent activity.
Regulatory bottlenecks are another obstacle. Although the Bangladesh Bank issued licenses for digital-only banks in 2023, none have become operational as of mid-2025. This delay has slowed innovation and limited access to more advanced digital banking services. Moreover, service charges remain high for some users, with transaction fees up to 15 times greater than those in traditional banks.
Despite ongoing challenges, Bangladesh is steadily advancing towards a cashless economy. With expanding digital infrastructure, strong policy support and innovation from the private sector, the momentum is clear. To ensure inclusive progress, greater focus is needed on digital literacy, fraud protection, affordability and internet access. With sustained efforts, Bangladesh can build a trustworthy and inclusive digital financial landscape that benefits people across all segments of society.
Maria Tabassum Janbi, Student
Bachelor of Business Administration
North South University
