Bangladeshis keen on digital payment: study
As much as 65 percent of Bangladeshi consumers are keen to adopt digital payment solutions, indicating increased awareness and acceptance of electronic forms of payments in the country.
The study was carried out by YouGov, an international Internet-based market research and data analytics firm based in London, on behalf of Visa, the global leader in digital payments technology.
About 2,000 people in India, Bangladesh and Sri Lanka were surveyed in October this year.
The survey was aimed at understanding the pulse of the Bangladeshi consumer and their views towards the transition to a digital economy.
About 74 percent of the respondents said the key driver for adoption is the ease of transition into digital form factors of payments.
Some 54 percent of the respondents said the main reason for moving away from cash is convenience, while 40 percent vouched for efficiency and speed of transaction offered by digital modes.
Of the respondents for whom the adoption was tough, 69 percent find insufficient modes of payments as the key barrier, while 25 percent are worried about the security of their transactions.
Significantly, over half of the consumers, or 55 percent, value security more than convenience when it comes to making payments online.
“This is similar across the board -- gender, ages, household income and even education levels,” said Visa in a statement yesterday.
The survey also showed that millennials are more likely to use digital payments for everyday essentials like shopping at supermarkets, online, department stores, restaurants and travel than the other generations.
The inclination towards embracing digital payments is higher amongst those from a higher income household, the study found.
In the statement, TR Ramachandran, group country manager of Visa for India and South Asia, said: “More and more consumers are becoming digital natives, expecting a differentiated experience, oriented towards convenience and practical usability.”
The Internet of Things, contactless payment technology, enabling simplified, secure and faster ecommerce experience are some of the trends defining the next wave of payments. The study shows that while consumers are steadily embracing digital payments, they are also seeking secure payment forms.
“At Visa, we constantly innovate and evolve to provide seamless and secure digital payment options that will make transition to a digital economy a frictionless and trusted process,” Ramachandran said.
Cash usage continues to show steady decline: from over 52 percent last year to 49 percent currently. It is expected to come down further to about 46 percent over the next 12 months, according to the survey.
On the contrary, preference for digital payment instruments such as cards continues to be on the rise, with over 32 percent respondents opting for these currently as against 29 percent a year back.
Some of the biggest challenges inhibiting the transition are the lack of availability of the acceptance infrastructure and the promise of security.