MFS transactions surge in Aug
Transactions through mobile financial services in Bangladesh grew more than 50 per cent year-on-year to Tk 62,230 crore in August, central bank data showed.
It was Tk 41,403 crore in the same month last year.
August's amount was, however, down from Tk 66,387 crore recorded in July this year, according to the Bangladesh Bank.
The use of MFS rose sharply from May last year after the country was hit with the coronavirus pandemic as people were forced to carry out transactions on mobile phones to buy products and services and make payments to keep the rogue virus at bay.
Merchant payment rose three times to Tk 3,465 crore in August, which was Tk 1,062 crore in the same month last year.
Government transfers, however, fell to Tk 13.8 crore against Tk 15 crore a year ago.
Salary disbursement through the MFS system almost doubled to Tk 1,903 crore from Tk 1,063 crore in August last year.
Users paid utility bills amounting to Tk 1,323 crore, up from Tk 908 crore in the same month last year, while person-to-person transfers rose to Tk 19,445 crore from Tk 12,464 crore.
Customers purchased mobile talk-times amounting to Tk 688 crore in August, which was Tk 649 crore in the same month last year.
Currently, 13 banks are operating MFS in Bangladesh, according to the BB.
They are Rocket of Dutch Bangla Bank Ltd, bKash of Brac Bank, MYCash of Mercantile Bank, mCash of Islami Bank Bangladesh Ltd, TAP, a joint venture of Trust Bank of Bangladesh and Axiata Digital Services of Malaysia, First Pay SureCash of First Security Islami Bank, UPAY of UCB Bank, OK Banking of One Bank, Rupali Bank SureCash, TeleCash of Southeast Bank, Islamic Wallet of Al-Arafah Islami Bank, Spot Cash of Standard Bank, and Meghna Bank Tap n Pay.
Besides, Nagad Ltd, the digital financial service of the Bangladesh Postal Office, also runs a mobile banking service.
Shamsuddin Haider Dalim, head of corporate communications of bKash, says the use of MFS has increased as almost all types of financial transactions can be performed while staying at home during the pandemic.
At the same time, receiving financial aid and incentives from government and private institutions, paying utility bills, making mobile recharges, receiving remittance from abroad, paying tuition fees, and buying tickets have boosted the volume of transactions.
"This has been reflected in the overall transaction data," Dalim said.
He said the transaction amount was slightly down in August in comparison to July due to the post-Eid effect. Transactions usually decline after a major festival.
Muhammad Zahidul Islam, head of public communication at Nagad, the second-largest mobile money carrier, says the 50 per cent year-on-year growth in August is moderate as the industry has the opportunity to grow at a faster pace.
"We have seen a massive growth every month on our network. New customers are joining the MFS system every day," he said.
He says the pandemic has played a role in accelerating the use of the MFS system. The convenience of using the service, the easy account-opening process, and the cost-effective service of Nagad have helped the company attract more users, he said.
At the end of August, the number of MFS accounts stood at 10.44 crore, which was 9.39 crore in the same month in 2020. Of them, 5.69 crore are male account-holders, and 4.72 crore are female account-holders.
There are 11.62 lakh MFS agents across the country.
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