Introduction of new plastic cash is welcome

When many countries including neighbouring India, Sri Lanka and Pakistan have their own plastic cash, especially debit, credit or prepaid cards, there is no reason why Bangladesh should continue to depend on foreign payment processing systems like Visa, MasterCard, and American Express. So, the launching of TakaPay, the local plastic cashcard, by the prime minister on November 01 is a welcome move. To be operated through the Bangladesh Bank (BB)'s own payment gateway, the National Payment Switch of Bangladesh, the cashcard will transform the system of payment. Since the foreign branded plastic cards are expensive because of the hefty annual fees in US dollars they charge their users, the local banks and other financial institutions, the just introduced TakaPay, therefore, is expected to save foreign currency. Though, for the present, the TakaPay, stated to be issued by the state-owned Sonali Bank and private banks like City Bank and Brac Bank in collaboration with the BB, and to be used within the country, in the future, the cardholders, will also be able to save the foreign exchange conversion loss they now sustain while using the international brand plastic cash in foreign lands. So, it is gladdening to know that, as indicated by the government, TakaPay is also going to be developed as an international credit card through partnering with foreign banks and institutions. At this point, it is good to know that the BB is also planning to introduce what it terms, Taka-Rupee card, to enable tourists visiting either country to use it instead of Visa, Mastercard, etc. Once that happens, its holders could be spared the additional costs they have to bear by way of foreign currency conversion losses.

There is no question that the country should move fast to fall in step with the rest of the world towards conducting all types of financial transactions electronically. But it is also highly important to ensure that data security of the end users of the non-cash devices like TakaPay is adequately protected. Let there be no defrauding of this card like the debit cards issued by different commercial banks. In 2016, fakers copied the account information stored in a large number of magnetic strips attached to the back of the plastic cards. The City Bank had to reimburse its clients an amount of Tk 30 million as its debit card holders were robbed of the same amount from different points of sale (POS) terminals at the posh shopping malls of the city. Also by using skimming devices fraudsters copied account information of plastic cash users to steal Tk10 million from different ATM booths of the city.

Such a question arises because the TakaPay reportedly will also come with magnetic strips attached, though most modern plastic cash cards now use EVM technology in which system a computer chip is embedded in the card. Since these are more secure as they generate a security code every time card holders insert them into the chip-enabled POS or ATM terminals, it would be better, if TakaPay could be equipped with EVM technology at its very outset. For the purpose, the existing infrastructure of ATMs and POSs could be upgraded to make them chip-enabled. While popularising the TakaPay, the government needs to educate its potential users about efficient use of the card so they can draw the benefits as promised without being defrauded.