Eid propels MFS transactions to all-time monthly high in March
As of the end of March, the total number of registered MFS customers exceeded 22.40 crore
Mobile Financial Services (MFS) saw transactions worth Tk1.48 lakh crore in March, which is the highest monthly transaction since the inception of MFS in the country, according to central bank data.
Industry stakeholders attributed the surge in transactions to the expansion of mobile banking services, Ramadan, the month of fasting, and the festive Eid shopping season.
MFS transactions in March marked a 14% increase of Tk18,195 crore compared to February. The previous record for MFS transactions was in June 2023, amounting to Tk1.32 lakh crore, as per central bank data.
The first instance of transactions surpassing Tk1 lakh crore through MFS occurred in April 2022, with transactions reaching Tk1.07 lakh crore.
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Central bank data shows that 13 banks in the country currently offer MFS under various names, including bKash, Rocket, Ucash, MYCash, and SureCash.
Stakeholders said as the number of customers in MFS is increasing day by day, the volume of transactions is also increasing.
As of the end of March, the total number of registered MFS customers exceeded 22.40 crore, with urban customers comprising 9.77 crores and rural customers 12.62 crores. Among them, 13 crores are male customers and 9 crores are female customers.
Shamsuddin Haider Dalim, head of corporate communications and public relations at bKash, said MFS activities such as Cash Out, Cash In, Merchant Payment, and Salary Disbursement surged in March compared to previous periods.
Attributing this increase partly to Ramadan and Eid, he said, "Typically, relatives do not send so much money during other times but do so to assist with certain expenses during these occasions."
He said bank-bKash money transfers and bKash-bank loan repayments have also seen a rise due to the digital payment ecosystem. Many traders are now opting for MFS transactions, further contributing to the overall increase in transactions.
Dalim said as a result of various policy support from the Bangladesh Bank, customer confidence is growing. Previously, individuals who transacted once or twice a week are now engaging in transactions two or three times a day.
"The government's decision to integrate the MFS sector into the development of digital Bangladesh, particularly in disbursing various government allowances, scholarships, and incentives, has elevated the significance and essential role of this sector," the bKash official added.
A Nagad official told TBS, "The mobile financial services offered by Nagad are experiencing increasing popularity. We are continuously introducing new services based on customer demands. People nowadays do not wish to visit a bank or stand in line for transactions. So, MFS services are likely to gain even greater popularity in the future."
He said throughout April, nearly every day saw an average transaction amounting to Tk5,000 crore. Furthermore, a variety of incentives have been provided to customers engaging in digital shopping, resulting in an upsurge in transaction volumes.
Mobile banking was introduced by the Bangladesh Bank in 2010. On 31 March 2011, the country's journey into MFS commenced with the inauguration of the private sector Dutch-Bangla Bank's mobile banking service, Rocket.
Subsequently, bKash emerged, launching its mobile banking service as a subsidiary of BRAC Bank. Currently, the majority of mobile banking services in the country are dominated by bKash, followed by Nagad.
