Interoperability of digital payments comes to fore

Widespread interoperability of digital payment services should be introduced in the country to expand the reach of financial inclusion, analysts said.

Interoperability is the ability for different systems to connect with one another.

Interoperability among the digital payment channels would ensure clients' benefits, facilitate competition based on product innovation and boost the growth of a digital finance ecosystem, they said at a roundtable.

The Inclusive Finance and Development (InM) and United Nations Capital Development Fund (UNCDF) jointly organised the event on “Interoperability of digital finance in Bangladesh: challenges and taking-off options”, at Lakeshore Hotel in the capital.

Mustafa K Mujeri, executive director of InM, suggested the central bank create a platform to help clients conduct their transactions among different mobile wallet accounts.

Mujeri presented the keynote paper at the event. Direct transaction between mobile money accounts and bank accounts should be introduced to create a branchless banking culture, he proposed.

The central bank and other financial regulators need to create a level playing field for all the players so that they feel encouraged to diversify their products, the economist said.

Interoperability of digital financial services will accelerate financial inclusion and help the economy achieve the goals of Vision 2021, MA Mannan, state minister for finance and planning, said at the programme.

The banking regulator has launched an initiative for the interconnection of the MFS accountholders and their bank accounts, said Lila Rashid, a general manager of the central bank.

Bangladesh Bank has also taken measures to make mobile financial services (MFS) interoperable, she said.

Interoperability of credit and debit cards has already been established, said Subhankar Saha, an executive director of the central bank.

The BB will introduce the interoperability of internet banking through its national payment switch within the shortest possible time, he said.

The interoperability between banks and MFS would be introduced by December this year and MFS to MFS by June next year, Saha told The Daily Star after the roundtable.

Fahim Mashroor, CEO of bdjobs.com, said the regulators and authorities concerned should establish a new platform to ensure the interoperability of all digital payment channels.

“Our neighbouring country India has already built such a platform which strengthened its financial inclusion tremendously.”

Banks and other players should establish justice in the financial sector where the use of information technology is increasing fast, said Qazi Kholiquzzaman Ahmad, chairman of InM.

“A vested quarter has entered into the sector and we should avoid them.”

Only two banks dominate 90 percent of the MFS market although 17 banks got licence to provide the service, he said.

The clients in Bangladesh pay Tk 20 to send Tk 1,000 through MFS whereas it costs Tk 2.5 in the neighbouring country, Ahmad said. The finance ministry and the central bank should do something to reduce the charge, he said.

Arijit Chowdhury, additional secretary at the finance ministry, and Md Ashraful Islam, UNCDF country project coordinator, spoke among others.