The US-based company VISA aims to support Bangladesh to minimise its huge volume of informal economy through ensuring cashless transactions.
The country's GDP could be boosted by 1.5-3.0 per cent through digital payment system, said Sandeep Ghosh, VISA Group Country Manager - India and South Asia, while discussing benefits of card payment with newsmen at a city hotel on Wednesday.
Mr Ghosh noted various avenues of opportunity for further digitisation, including payment of taxes, utility bills, transit fees, etc.
VISA has already started 'VISA Direct' service, so that wage-earners can easily send remittances through card-to-card payment. Currently, some 25-26 commercial banks have the service in Bangladesh.
Financial transparency could be ensured though card payment, as the transactions could be tracked easily, noted Mr Ghosh.
Dispute resolution system of VISA with the banks also gives customers a guarantee on proper payment and payback in case of forgery or other issues.
The US-based VISA has been operating in Bangladesh for the last two years. "The company has attained 30 per cent year-on-year growth in terms of transaction volume through its cards," he said.
VISA offers commercial and business cards to help smooth and digital business transactions through using the interoperable cards.
According to the Bangladesh Bank, market share of electronic cards is 70-72 per cent in Bangladesh.
"Cash transaction involves cost to ensure security, while card transaction offers different schemes and benefits to the consumers," Mr Ghosh mentioned.
It is not possible to bring an end to cash transaction in any economy, but it can be minimised through card payment, he added.
Soumya Basu, VISA Country Manager - Bangladesh, Nepal and Bhutan, said the government can encourage digital payment through offering incentives or tax waivers, which would help to formalise financial transactions in the long run.
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