Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Despite an overall decline in the country's mobile financial transactions, inward remittances through MFS registered a notable rise in June.
However, the overall decline was attributed to a data-reporting gap.
Total MFS transactions fell by 5.49 per cent in June 2025, even as the number of users and demand for digital payment services continued to grow.
The volume of mobile financial transactions in Bangladesh declined to Tk 1.46 trillion in June 2025 from Tk 1.55 trillion in May 2025, according to Bangladesh Bank (BB) data.
On the other hand, in June 2025, inward remittances of Tk 18.65 billion were disbursed through the MFS channel, while it was at Tk 16.46 billion in May 2025, according to BB data. MFS statistics are compiled considering MFS providers such as bKash, Rocket, Upay, and so on.
According to the BB, the number of MFS accounts is 145.64 million, of which 69.35 million are in urban areas and 76.29 million are in rural areas in June 2025.
Among the services provided by the MFS operators, the government is providing cash incentives in inward remittances. The e-money balance in June this year is Tk. 125.36 billion, as revealed by central bank data.
Industry insiders attribute the overall decline mainly to a temporary data reporting gap at Nagad, one of the country's largest MFS providers.
Due to unavoidable circumstances, NAGAD was unable to submit data from March 2025, according to the BB report.
According to the latest figures from BB, total MFS transactions stood at Tk 1.25 trillion in April, down from Tk 1.78 trillion in March. The volumes were Tk 1.59 trillion in February and Tk 1.71 trillion in January.
Government incentives to encourage remittance through official channels have also contributed to long-term growth.
Dr. Masrur Reaz, chairman of Policy Exchange Bangladesh, said June's dip in MFS transactions is more technical than structural, mainly due to data gaps.
The rise in remittances shows strong user confidence and growing formalisation, he said.
"With better reporting and continued policy support, MFS can further deepen financial inclusion and shift flows away from informal channels," Reaz added.
A senior MFS executive, requesting anonymity, noted that competitive exchange rates, lower cash-out charges, and rising user confidence are gradually shifting remittance flows away from informal channels like hundi.
"Even politically connected players who previously relied on hundi are stepping back," the official said.
The sector reached a notable high in December 2024, when the number of accounts hit 238.68 million, and monthly transactions reached 670.05 million -- up from 652.10 million in November. That month, the total transaction volume rose to Tk 1.65 trillion, compared to Tk 1.56 trillion in November.
Remittances via MFS also grew by 15.23 percent to Tk 12.41 billion in December, while e-money balances dipped slightly to Tk 130.80 billion from Tk 137.26 billion in the previous month.
sajibur@gmail.com