Online cattle sales jump 125pc as buyers embrace digital payments during Eid

Online cattle trading through commercial banks and mobile financial services (MFSs) saw a 125.3 per cent rise during this year's Eid-ul-Adha compared to that of last year with a growing number of buyers and traders preferring such hassle and risk-free transactions.

According to insiders, such cashless transactions for sacrificial animals are becoming popular day by day, which indicates a gradual shift towards digital payment systems for this purpose.

According to data of various banks and sources at Bangladesh Bank (BB), digital transactions for sacrificial animals exceeded Tk 2.24 billion during the last Eid-ul-Adha compared to that of Tk 940 million in 2024.

According to bank officials familiar with cattle markets, a significant number of farmers and livestock traders had opened new bank accounts on the spots for doing digital transactions.

According to the central bank data, cashless transactions in cattle markets were recorded at Tk 440 million in 2023 and Tk 350 million in 2022.

Islami Bank Bangladesh PLC reported the highest Tk 670 million worth of online transactions for cattle through multiple channels such as POS machines, QR codes, IBFT (Inter-Bank Fund Transfer) and agent banking.

The bank also opened 92 new accounts and directly served more than 7,040 customers, the banking sources said, adding that more than 500 customers also received guidance on balance confirmation and mobile app-based transactions.

BRAC Bank reported Tk 330 million worth of online transactions for cattle while the City Bank's digital payments during the last Eid-ul-Adha ranged between Tk 50 and Tk 60 million.

Online transactions for cattle trading through Bank Asia's two digital booths and agent banking, ATMs, POS, and QR code services were recorded at Tk 320 million during the last Eid-ul-Adha.

The rising trend in transactions for sacrificial animals indicates how promising the digital market place is for the country's livestock sector, the stakeholders said. They expressed the hope that such online cattle trading would continue to grow in the future.

Despite having digital facilities, many buyers preferred withdrawing cash from their accounts instead of conducting digital transactions, according to insiders.

This year, 16 commercial banks and 4 Mobile Financial Service (MFS) providers participated in the cashless operations in major cattle markets under Dhaka North, Dhaka South, and Chattogram city corporations.

They are: BRAC Bank, Bank Asia, UCB, MTB, The City Bank, Islami Bank, AB Bank, Eastern Bank, IFIC, Pubali, Dutch-Bangla, Sonali, EXIM, and One Bank.

They facilitated digital transactions through POS terminals, mobile banking, ATMs, CRMs, and online fund transfers.

The central bank also instructed banks to keep evening banking services operational near cattle markets to support continued transactions.

According to the bankers, cashless transactions significantly reduce risks of mugging, counterfeit currency and hassle of carrying large amounts of cash.

At the same time, such transactions have positive roles to play in strengthening financial security and regulatory control.

Saying that creation of awareness and financial inclusion remain major challenges, Tawhidul Alam, a senior official at The City Bank, stressed the need for bringing more farmers and cattle traders into the banking system.

His bank's digital transactions almost doubled during this year's Eid, Alam stated.

Many cattle owners and sellers are still not much equipped with the digital system, he told the FE, adding that they are not even mentally prepared.

He said the number of digital transactions through his bank stood at over 2000.

He also suggested introduction of incentives for livestock traders in digital cattle transactions, as offered for boosting remittance inflow.

"Promoting online banking during the Eid can reduce the waste of physical cash and improve overall safety," he added.

Talking to the FE, Dipok Chandra Das, a senior manager at BRAC Bank, said banks received an overwhelming response from customers at the cattle markets in Dhaka during the past Eid.

Although his bank started offering digital services at the 'Qurbani haat' a bit late and faced challenges due to rain, they were still able to process transactions worth Tk 330 million, he said.

Mr. Das further said a nationwide awareness campaign, especially targeting remote areas throughout the year, is necessary to promote hassle-free digital transactions.

sajibur@gmail.com