Pathao to launch its own mobile wallet

Pathao, a ride-hailing company, is set to launch its own digital payment channel by the end of May with a view to cutting down consumer reliance on cash payments.

Christened Pathao Pay, customers can use it to pay for Pathao's three motorcycle-based services: taxi, food delivery and courier.

It will work like the mobile operators' pre-paid connections; credit has to be purchased in advance of service use. The Pathao Pay wallet can be loaded up from any bank or a Pathao service delivery person.

“Payment is a big challenge in our country -- we are a largely cash-based economy,” said Ahmed Fahad, vice president of products at Pathao.

With Pathao Pay, customers can easily transact with the service delivery person and reduce the hassle of big note changes, he said, adding that the mobile app for Pathao Pay has already been developed and is in the testing phase.

Pathao has not taken any approval from the central bank for Pathao Pay as it feels it is not running any banking services with it.

There will not be any cash-out service from Pathao Pay and customers can only use this money for purchasing Pathao services.

“This will ultimately help establish a cashless digital e-ecosystem,” Fahad said.

Founded in 2015, Pathao has made inroads in tackling Bangladesh's commuting problems.

The World Bank estimated that traffic costs 3.2 million working hours each day and hits the economy by $4.6 billion every year in Dhaka -- a city with over 18 million people and no mass transit system.

As the first mover in the ride-hailing industry, Pathao quickly gained popularity by allowing people to conveniently and economically beat congestion.

Pathao's food delivery service is also getting popular by the day although its first product was courier service for mostly e-commerce sites.

“Our riders or delivery persons are facing challenges in giving the exact change to customers, so we have come up with a solution in Pathao Pay,” Fahad added.