As the country is in the midst of embracing of cashless transactions, the introduction of Bangla QR is considered a giant step forward to that end. However, Mr Tareq Refat Ullah Khan, Managing Director and CEO of BRAC Bank PLC, in an interview with The Financial Express, has raised a very valid issue; i.e., a national framework on how to share the cost of Bangla QR infrastructure and merchant discount rate.
Question (Q): What are the key benefits of Bangla QR for small merchants?
Answer (A): Bangla QR transforms small-scale merchant operations by driving financial inclusion through two primary advantages:
Enhanced Security & Efficiency: Eliminates cash-handling risks, including counterfeit notes, damaged currency, and change shortages. It secures business revenue by reducing the need to store or transport large volumes of physical cash.
Access to Formal Credit: Replaces cash-only operations with a verified digital transaction history. This footprint enables banks to accurately assess business performance and creditworthiness, unlocking access to formal financing and SME loans for previously underserved entrepreneurs.
Q: What initiatives has BRAC Bank undertaken to accelerate Bangla QR adoption among small businesses, SMEs and retail customers?
A: BRAC Bank has consistently championed digital payments across all customer segments. The success of Bangla QR depends largely on having a robust, user-friendly digital platform that enables fast, seamless and secure transactions.
With this vision, we introduced our mobile banking app, Astha, and continue to invest in enhancing its capabilities. Today, Astha facilitates more than BDT 25,000 crore in monthly transactions. QR payments have long been available through the app, and we are now further optimising it to deliver a superior Bangla QR experience.
At the same time, our subsidiary bKash has built the country's largest Bangla QR merchant network. BRAC Bank is also rapidly expanding its own Bangla QR footprint by engaging merchants across the retail, SME and corporate segments through a coordinated, bank-wide strategy.
We have made Bangla QR onboarding mandatory for new SME account holders and have partnered with leading pharmaceutical companies, enabling pharmacies purchasing medicines from these companies to make payments through Bangla QR.
Alongside network expansion, we are offering attractive incentives and promotional benefits for both merchants and customers to encourage adoption.
With these initiatives, BRAC Bank is preparing to become the leading bank in Bangla QR transactions in Bangladesh.
Q: What are the key challenges in popularising Bangla QR among small retailers, and how is BRAC Bank addressing them?
A: One of the biggest challenges is changing merchant behaviour and encouraging greater acceptance of digital payments. A considerable number of small retailers still do not maintain bank or mobile financial service accounts. Bringing them into the formal financial system remains a prerequisite for widespread adoption of Bangla QR.
Another challenge is transaction costs. Some merchants remain hesitant because accepting digital payments often incurs fees. Addressing this issue requires a collaborative approach. Government incentives and policy support, alongside industry initiatives, can significantly accelerate adoption.
From BRAC Bank's perspective, we are offering a range of incentives to merchants accepting payments through Bangla QR. We have also enabled instant settlement, allowing merchants to receive funds directly into their bank accounts immediately after each transaction.
To encourage customer usage, we offer reward points on Bangla QR payments made through BRAC Bank debit and credit cards. These rewards can be redeemed for various benefits, including annual fee waivers. Astha users can also conveniently make Bangla QR payments through the app.
In addition, more than 10,000 colleagues across our branches, sub-branches, SME unit offices and Agent Banking network are actively promoting Bangla QR adoption throughout the country.
Beyond banking, wider smartphone penetration and reliable internet connectivity remain essential for nationwide adoption. Ensuring affordable smartphones and uninterrupted internet access, particularly in rural and underserved areas, will be critical to achieving universal adoption of digital payments.
Q: What technologies and policies does BRAC Bank follow to ensure the security of QR-based transactions, prevent fraud and strengthen customer confidence?
A: The security of a bank today depends significantly on the resilience of its digital infrastructure. Customers' account information, transaction records and personal data are now stored digitally, making cybersecurity one of the most critical responsibilities for any financial institution.
At BRAC Bank, safeguarding customer data and digital infrastructure is a critical operational priority. We secure our digital channels using robust data encryption, data loss prevention (DLP) mechanisms, and multi-factor authentication in line with international best practices. Real-time threat detection is managed through an advanced Security Operations Centre (SOC) utilising SIEM and SOAR platforms, ensuring full compliance with Bangladesh Bank regulatory guidelines.
To counter emerging fraud risks, we actively combine technical resilience with human defence through ongoing customer awareness campaigns on safe digital banking practices. Our proactive security strategy includes a dedicated Cyber Incident Response Team backed by strong Business Continuity Management and Disaster Recovery capabilities. Moving forward, we are expanding our defences by integrating AI and machine learning analytics, threat intelligence sharing, and rigorous vulnerability assessments to ensure long-term trust in our QR ecosystem.
Q: What advice would you give customers using the Bangla QR platform?
A: One of the biggest advantages of Bangla QR is its interoperability. Customers no longer need to search for a specific bank's or payment service provider's QR code while shopping. Any participating bank or mobile financial service (MFS) app can scan a single Bangla QR code and complete the payment instantly.
However, customers should always verify the merchant's name and the transaction amount displayed on the screen before entering their PIN or OTP. Under no circumstances should they share their PIN, password or OTP with anyone.
Another important benefit of digital payments is that every transaction creates a secure and reliable financial record. Besides helping customers track and manage their monthly expenses, these transaction histories can strengthen their financial profile and improve their eligibility for future banking services, including access to credit.
Q: What policy measures should the government consider to accelerate nationwide adoption of Bangla QR?
A: Bangladesh Bank has currently set the Merchant Discount Rate (MDR) for Bangla QR transactions at 1 per cent for general merchants. However, if we are serious about achieving widespread adoption of digital payments, it is time to consider how this service can be delivered at a significantly lower cost.
The experiences of countries such as India and Thailand provide valuable lessons. During the early stages of QR payment adoption, these countries made digital payments almost free for merchants and consumers. This did not eliminate processing costs; rather, those costs were shared among governments, central banks, payment networks, and participating financial institutions, rather than borne primarily by merchants.
These countries treated QR payments as a national digital infrastructure rather than merely another commercial payment product. They recognised that wider adoption of digital payments would generate long-term economic benefits by promoting financial inclusion, improving tax transparency, and bringing informal economic activity into the formal financial system.
Bangladesh now faces an important policy decision. We need a clear national framework on how the costs of Bangla QR infrastructure and the Merchant Discount Rate should be shared among the government, Bangladesh Bank, commercial banks, payment networks and merchants.
The speed at which Bangla QR becomes a mainstream payment method will ultimately depend on how effectively this policy question is addressed. A collaborative approach will be essential to building a truly inclusive and sustainable digital payments ecosystem.
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