April transactions thru MFS up by 16pc

Transactions through mobile financial services (MFS) increased by nearly 16 per cent year on year in April last, implying people's growing trust in this digital platform.
According to data from the central bank, a record high of Tk 1.45 trillion was transacted by using services mainly from bKash, Nagad and Rocket in April 2024. The transactions first crossed Tk 1.0 trillion in April 2023.
The highest transaction was recorded in cashout, the most popular product of the MFS. Cashout transaction was Tk 470 billion in April last, up by more than 27 per cent from its previous period a year earlier.
Initially, customers showed reluctance to do transactions through MFS, and their trusts has increased since the Covid-19 pandemic, leading to the rapid expansion of the services.
Currently, a total of 226.5 million MFS accounts or up by nearly 13 per cent have opened from the period a year earlier. Of the accounts, males have 131.78 million or more than 58 per cent. However, the April transaction was the second-highest record. Earlier, the highest transaction in a single month was Tk 1.54 trillion in March.
Industry insiders argued that easy account opening with MFS by filling the digital KYC (Customer Information) is a key reason behind the surge. They also said the MFS had been extending services to reach the unbanked populations.
Shamsuddin Haider Dalim, head of the Corporate Communications at bKash, said: "Customers' growing trust, service expansion and regulatory support have helped raise the daily transactions."
He also said MFS would be growing up in the future as it (MFS) incorporates all types of people in the formal transactions. "We have 900,000 merchant accounts, which means that people can transact cashless even with small groceries," Mr. Dalim added.
The Bangladesh Bank launched mobile banking in 2010. On March 31, 2011, the journey of mobile financial services in the country began with the launch of the mobile banking service of Dutch-Bangla Bank.
After that, bKash launched mobile banking services as a subsidiary of BRAC Bank. Presently, bKash is the market leader of 13 MFS providers.
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