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Bangladesh's payment ecosystem saw strong growth and structural transformation throughout 2024, driven by rising digital adoption, major technological upgrades, and strengthened regulatory oversight, according to the latest Bangladesh Bank (BB) Payment Systems report.
Covering January-December 2024, the report highlights key trends across retail, large-value, digital, and paper-based transactions, while also noting global developments influencing the broader financial landscape.
Formal payments in Bangladesh are primarily routed through five BB-operated or regulated platforms: Bangladesh Automated Cheque Processing System (BACPS), Bangladesh Electronic Fund Transfer Network (BEFTN), Bangladesh Real-Time Gross Settlement (BD-RTGS), National Payment Switch Bangladesh (NPSB), and the Interoperable Digital Transaction Platform (IDTP). Manual transfers, over-the-counter (OTC) payments, and the expanding Mobile Financial Services (MFS) ecosystem also play important roles.
Both digital and non-digital channels recorded higher activity during the year. Digital transaction volume rose from 366.7 million in December 2023 to 403.13 million in December 2024, while value increased from Tk 751.4 billion to Tk 763.4 billion. Non-digital transactions grew even faster, rising from 346.2 million to 454.9 million -- a 31.40-per-cent increase.
Paper-based instruments under BACPS remained significant, with 10.42 million instruments worth Tk 11.75 trillion cleared in 2024.
The BD-RTGS system underwent a major technological upgrade, adopting ISO 20022 messaging standards, introducing separate settlement schedules for Taka and foreign currency transactions, enhancing message tracking, and preparing for potential 24/7 operations.
In 2024, BD-RTGS processed 5.39 million transactions valued at over Tk 26.72 trillion, reflecting increasing use for both domestic and foreign currency transfers, including USD, Euro, CNY, JPY, GBP, and CAD.
Interoperable retail transactions through NPSB also expanded. More than 154 million transactions worth over Tk 2.71 billion were processed during the year. Inter-bank fund transfers accounted for 80 per cent of total transaction value. ATM transactions continued to dominate volume, while POS and QR payments recorded slow but steady growth.
The IDTP (Binimoy) platform saw rising adoption following cost reductions and enhanced interoperability in mid-2024. As of June 2024, about 481,000 users had created virtual identities. During the year, the platform processed around 230,000 transactions worth nearly Tk 0.73 billion.
MFS segment saw declines
In the MFS segment, however, digital usage weakened. The volume share of MFS digital transactions fell from 46.82 per cent to 40.99 per cent, while value share dipped from 2.37 per cent to 2.36 per cent, signalling a shift toward cash-based behaviour.
In value terms, MFS use in 2024 comprised 32 per cent cash-out, 30 per cent cash-in, 26 per cent person-to-person transfers, 5.0 per cent merchant payments, and 3.0 per cent salary disbursements.
The float of MFS providers increased to Tk 131 billion at end-December 2024, from Tk 109 billion the year before. Active MFS accounts rose to 239 million from 220 million, while the number of agents grew from 1.7 million to 1.8 million.
Transactions through Payment Service Providers (PSPs) and Payment System Operators (PSOs) also increased. PSPs processed 24.4 million transactions worth Tk 17.9 billion, while PSOs handled 35.1 million transactions valued at Tk 45.3 billion.
Stakeholders said that although Bangladesh's digital payment ecosystem is expanding, usage remains uneven across sectors. While money transfers through MFS platforms continue to grow, merchant-level adoption-particularly among small and micro businesses-remains limited.
AKM Fahim Mashroor, chief executive officer of bdjobs.com, said the banking system must become more SME-focused to drive wider financial inclusion. He noted that bank account penetration in Bangladesh is still low compared to India, where 80-90 per cent of people have formal banking access.
He added that while money transfers are increasing, actual MFS-based payments remain low, and micro-merchants should use MFS more actively for receiving payments and settling dues. Sending money to rural areas through bank accounts is also more affordable and should be encouraged, he said.
"MFS payments are still low, and this gap needs to be addressed," Mr Mashroor added.
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