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Mobile financial transactions in Bangladesh fell by 29.77 per cent in April 2025, despite a rising number of users and continued strong demand for digital payment services.
The decline was primarily driven by two factors: a temporary data reporting gap from Nagad, one of the largest Mobile Financial Services (MFS) providers, and a significant fall in remittances sent through mobile platforms.
According to the latest figures from Bangladesh Bank, 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.
By contrast, April 2024 recorded Tk 1.44 trillion in transactions, indicating a year-on-year dip despite the sector's overall expansion.
Inward remittances via MFS also declined steeply in April, falling 35.24 per cent to Tk 13.64 billion from Tk 21.07 billion in March. Remittance volumes were Tk 12.68 billion in February and Tk 12.39 billion in January.
E-money balances followed suit, dropping 25.75 per cent to Tk 127.34 billion in April, partly reflecting the absence of Nagad's transaction data for both March and April.
Still, sector fundamentals remain strong, with a steady rise in user adoption and platform penetration. As of April 2025, the number of registered MFS accounts reached 144.17 million -- 75.55 million in rural areas and 68.63 million in urban centres.
Major providers such as bKash, Rocket, and Upay continue to drive expansion, with growing adoption for everyday use, including peer-to-peer transfers, utility payments, tuition fees, and retail purchases. Government incentives to encourage remittance through formal channels have also contributed to long-term growth.
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 per cent 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.
Despite the recent downturn, industry insiders view the April figures as a temporary disruption rather than a long-term trend. With digital payment systems becoming increasingly embedded in the daily lives of millions, and with policy support continuing, the sector's outlook remains resilient.
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