Mobile Financial Services (MFS) in Bangladesh have experienced remarkable growth, with both "NAGAD" and MFS platforms offered by scheduled banks-such as bKash, Rocket, and Upay-contributing to the expansion.
As of December 2024, the total number of MFS accounts stood at 238.68 million-107.72 million in urban areas and 130.96 million in rural areas, according to the latest Bangladesh Bank report.
The number of transactions reached 670.05 million in December, up from 652.10 million in November, reflecting a 2.75 per cent increase, the central bank data said. Similarly, transactions rose from 591.65 million in September to 643.73 million in October, highlighting a steady upward trend.
On the other hand, in December, the total transaction volume exceeded Tk 1.65 trillion, up from Tk 1.56 trillion in November, according to the data. Similarly, in October, transaction volume surpassed Tk 1.55 trillion, compared to Tk 1.45 trillion in September, reflecting consistent growth.
In December 2024, inward remittances through MFS surged by 15.23 per cent, reaching Tk 12.41 billion. The figure stood at Tk 10.77 billion in November, Tk 11.02 billion in October, Tk 10.21 billion in September, while e-money balance stood at Tk 127.30 billion, marking a 9.37 per cent increase in October compared to September.
In August, expatriate Bangladeshis sent Tk 11.01 billion in remittances, compared to Tk 7.14 billion in July. In December 2024, the e-money balance stood at Tk 130.80 billion, reflecting a 4.70 per cent decline from Tk 137.26 billion in November, according to Bangladesh Bank data.
Among the various services offered by MFS operators, inward remittance is gaining notable traction, supported by government-provided cash incentives aimed at attracting higher remittance flows.
MFS accounts offer a versatile range of functionalities, allowing users to withdraw funds, conduct person-to-person transfers, top up mobile balances, settle utility bills and education fees, and make payments to merchants.
Speaking on condition of anonymity, an official from a mobile financial service stated that inward remittance through MFS is gaining popularity day by day, thanks to government cash incentives to attract more remittances.
Customer confidence in formal channels has significantly increased in recent times, contributing substantially to the rise in inward remittance, he said. He noted that customers are also receiving higher dollar exchange rates when sending remittances to the country.
Additionally, cash-out charges have become more affordable, and customers are benefiting from instant fund transfer facilities. "Even politically influential individuals previously involved in hundi have now become inactive in the current situation," he added.
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