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The card-based payment ecosystem in Bangladesh has undergone a remarkable transformation over the past five years, driven by increasing digital awareness, smartphone penetration, growth in e-commerce, regulatory support from Bangladesh Bank and customers' preference for secure and convenient payment channels, says Md. Ahteshamul Haque Khan, Managing Director and Chief Executive Officer (CEO) of Dutch-Bangla Bank PLC.
Citing reasons for such transformation during an interview with the Financial Express (FE) recently, Mr Haque said customers are increasingly shifting from cash-based transactions to digital payment instruments such as debit, credit and prepaid cards. Another major driver behind this shift, he said, is the growing adoption of e-commerce, digital banking through Banking app & Wallet, MFS, government digital initiatives and the increasing acceptance of cards at merchant outlets
Dutch-Bangla Bank PLC assesses this growth very positively. DBBL has been at the forefront of this transformation since introducing one of the country's earliest large-scale electronic banking infrastructures, he said. "In last five years, DBBL has launched several Debit, Credit and co-branded prepaid card to onboard customers from different segments. Additionally, the bank has consistently invested in payment infrastructure, including ATM/CRM, POS, E-Commerce and QR-based payment ecosystems to support this transition", he added.
DBBL controls around 50% share of country's total ATM/CRM. DBBL is also the largest Debit Card issuer in the country. "We are a leading player in credit & prepaid card issuing, POS, QR and E-Commerce acquiring. Our banking app Nexus Pay has more than 9 million users", Mr Haque said with a note of satisfaction and pride.
About the surge in the use of prepaid cards in Bangladesh, the DBBL MD said this type of card has emerged as one of the fastest-growing payment instruments here due to their flexibility, accessibility and enhanced spending control. A significant portion of customers, particularly students, freelancers, travelers, young professionals and first-time digital users, prefer prepaid cards because these cards can be used without maintaining a traditional banking relationship or large account balances, he said.
Besides, factors like rapid growth of international online subscriptions, digital marketplaces, overseas education payments and travel-related expenditures have also accelerated demand for prepaid and dual-currency payment solutions, he explained.
Dutch-Bangla Bank has strategically positioned itself to address this evolving demand through a diversified prepaid card portfolio and competitive fees structure. The bank offers several specialized prepaid solutionsincluding Travel Cards, Hajj Cards, Payroll Cards, Campus Cards, Gift Cards and Women-focused cards under Visa and MasterCard platforms.
As Bangladesh's freelancing, outsourcing and international travel sectors continue to grow, DBBL sees significant long-term opportunities in prepaid and cross-border payment solutions and remains committed to expanding these services further.
On the DBBL's adaptation to surge in E-commerce and online transactions, he said Bangladesh's e-commerce sector has experienced remarkable growth over the past few years, driven by greater internet penetration, smartphone usage, changing consumer behavior and the rapid adoption of digital payment methods. As online transactions continue to expand across retail, travel, education, utility payments and subscription-based services, Dutch-Bangla Bank PLC has been actively strengthening its card services and digital payment infrastructure to support the country's evolving digital economy.
As online merchants increasingly require faster settlement, reliable transaction processing and uninterrupted payment acceptance, Dutch-Bangla Bank continues to invest in scalable digital infrastructure and payment technologies.
Security remains one of the highest priorities for Dutch-Bangla Bank in the digital banking environment. As card-based and online transactions increase, fraud prevention, customer authentication and transaction monitoring have become critical operational priorities.
Dutch-Bangla Bank has implemented EMV chip-based card technology at the very beginning to significantly reduce the risks associated with card cloning and counterfeit fraud. In addition, the bank utilizes multiple layers of security protocols including OTP-based transaction verification, PIN authentication, transaction monitoring systems and fraud detection mechanisms. DBBL is fully PCIDSS compliant which is a global security standard.
DBBL continuously upgrades its cybersecurity framework and monitoring systems to address evolving fraud risks in digital channels. The bank also conducts customer as well as employee awareness initiatives on phishing, social engineering and safe digital banking practices, as digitalawareness is a crucial component of fraud prevention.
Asked about the role the DBBL playing in accelerating financial inclusion and card-based payment services, Mr Haque said Dutch-Bangla Bank has historically played a pioneering role in promoting financial inclusion and digital banking accessibility in Bangladesh. The bank strongly believes that the transition towards a cash-lite economy must be inclusive, sustainable and accessible for all segments of society, he added.
One of DBBL's key strengths lies in its extensive electronic banking and distribution network, which has enabled banking services to reach customers beyond traditional urban centers. The bank's ATM/CRM network, Fast track, agent banking operations, mobile financial services and card infrastructure have significantly contributed to bringing formal financial services closer to rural and underserved populations.
DBBL is particularly focused on expanding affordable debit and prepaid card solutions for students, workers, small businesses, freelancers and low-income customers.
Through QR-based transactions, agent banking integration and mobile-enabled payment solutions, DBBL is helping customers conduct secure financial transactions even in remote areas, Mr Haque concluded.