Challenges of popularising Bangla QR

Introducing Bangla QR has become more of a dilemma for retail traders than a breakthrough. The main issue is the Merchant Discount Rate (MDR), which has become the primary concern in promoting financial inclusion. A minimum MDR of 1.0 per cent is considered an additional burden on traders, as it is feared that their profit margins will shrink significantly.

Imposing this charge on retail traders has made many businesses reluctant to adopt Bangla QR. Moreover, since the system is paperless, the operating costs of financial institutions are expected to decrease. Therefore, many business owners have questioned the justification of imposing the MDR. Having to pay Tk 10 for every Tk 1,000 in sales has become a major concern for merchants.

For greater financial inclusion and the development of a cashless economy, such a system is essential. Cash management also involves significant costs. Therefore, introducing a universal payment gateway like Bangla QR was a timely initiative for Bangladesh. However, many merchants believe the MDR is unjustified, and many small businesses are now reluctant to adopt the system.

Since this initiative is intended to promote public service rather than generate profits, the MDR should be reconsidered. In addition, attractive incentives such as cashback offers, free products, or prize campaigns should be introduced to encourage adoption. These incentives should be available to both buyers and sellers to accelerate the system's acceptance. Furthermore, clear numerical illustrations demonstrating that the benefits outweigh the cost of the MDR should be presented to convince users of the system's feasibility.

Kawsik Azad Pronoy

A Banker and Economic Analyst

kawsikdbbl@gmail.com