upay, a newly launched mobile financial service provider, has assured client security as its first priority, followed by lowest cash-out fees and up to zero charge on person-person transactions.
Having obtained licence in December 2020 and launched the services in March last amid the Covid-19 pandemic, upay thinks that there is a room for growth in the market.
UCB Fintech Company Limited, a subsidiary of the United Commercial Bank (UCB), owns the MFS brand.
One of the major problems being faced by the customers is that the money in the wallet is getting stolen, upay CEO Sydul Haque Khandaker said.
"upay has been trying to ensure security of clients' data from day one so that the money remains safe," he told the FE in a recent interview, adding that they have ensured device authentication systems.
If anybody steals or obtains a PIN number, he or she cannot take away money without a control of the registered device and SIM, the upay CEO explained.
"One requires both PIN and possession of a handset to get the services," he said.
upay has also built its platform, powered by state-of-the-art blockchain technology, to ensure a greater sense of security and client confidence.
Admitting that existing cash-out charges are high, Mr Sydul said that it is difficult to reduce the charges significantly overnight.
"We've tried to address the problem in different ways. upay has introduced multiple wallets for clients for different needs."
Multiple wallets include a common primary wallet, salary wallet, remittance wallet and disbursement wallet, he continued.
Mr Sydul said charges of different wallets are less than Tk 14 per Tk 1,000 in different layers and in cases it is free of cost. upay can be used through both smartphone applications and USSD code.
USSD code allows users message service without a smartphone or data/internet connection to use mobile banking.
Another innovative solution for their client is to use the upay app on the Grameenphone network without any internet charge. GP provides a data solution allowing the upay customers to use the application without any internet charge.
Customers can withdraw money from any upay agent point by dialing *268#, then selecting the cash-out option from the menu to complete the transaction.
upay's cash withdrawal fee from the United Commercial Bank (UCB)-owned ATMs is also lowest in the market, which is 0.8 per cent or Tk 8.0 per Tk 1,000 cash withdrawal.
For app users, withdrawal fee remains the same as USSD.
With a nationwide presence of agent and merchant network, upay products include mobile transaction, utility bill payment, merchant payment, inward remittance, airtime recharge, and disbursement of salary and various government social-safety net allowances.
upay also offers some unique services exclusively available for its customers, including payment of traffic prosecution fines, Indian visa fee payment and Titas gas (prepaid) bill payment.
All types of bill payments are free of charge.
With the launch of upay, the UCB shelved its eight-year-old MFS brand 'Ucash', which was launched in 2013.
The customers of Ucash have migrated to the new platform.
Mr Sydul said the MFS regulator - the Bangladesh Bank - is happy with upay service and security features developed by 100 per cent upay's in-house Bangladeshi talents.
He said upay did not set any target for any certain number.
Our target is changing behavior of MFS clients and improving the total ecosystem," he observed.
The UCB is ready to invest as much money as upay requires to grow competitively.
Mr Sydul said the total digital ecosystem, people's behavioural changes toward digital cash, smartphone penetration for expansion of the market is very important.
upay is the second MFS brand after bKash operating as a bank subsidiary.
The central bank has allowed the bank-led MFS in 2011 to boost financial inclusion in the country through offering financial services via mobile phones for the unbanked people.
Around 16 banks are currently offering mobile financial services to more than 100 million customers countrywide.
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