Staff Reporter :
The use of mobile financial services (MFS) by Bangladesh’s migrant workers to send remittances home has increased significantly, growing by 95.22 per cent year-on-year (YoY), according to Bangladesh Bank data.
In October 2024, expatriates sent Tk1,102.22 crore via MFS platforms, a substantial rise from Tk564.61 crore recorded in October 2023. This growth reflects the increasing preference for MFS platforms, including Nagad and services like bKash, Rocket, and Upay, offered by scheduled banks.
The upward trend continued month-on-month, with Tk1,021.99 crore disbursed through MFS in September 2024, marking a 7.85 per cent rise in October. The remittance figure in August 2024 stood at Tk1,101.81 crore, compared to Tk714.48 crore in July.
In October 2024, the number of registered MFS users reached 2,342.50 lakh, with 1,379.80 lakh male and 962.70 lakh female customers. Transaction volumes also rose, with 64.37 crore transactions in October compared to 59.16 crore in September,
reflecting an 8.80 per cent increase.
The total value of transactions via MFS exceeded Tk1,54,857.32 crore in October, up from Tk1,45,067.63 crore in September.
Shamsuddin Haider Dalim, head of corporate communications and public relations at bKash Ltd, Bangladesh’s largest MFS provider, attributed the growth to the convenience of digital transactions.
He noted that inward remittance services offered by MFS operators are steadily gaining popularity due to increased customer trust, higher exchange rates, and ease of access.
“Expatriates from over 110 countries can send money to their families through bKash, ensuring quick transfers even in emergencies,” he said, highlighting affordable cash-out charges and instant fund transfers as key benefits for users.
The introduction of off-branch MFS by Bangladesh Bank in 2011, leveraging widespread mobile networks and improved IT infrastructure, has transformed Bangladesh into the largest MFS market globally.
The bank-led MFS model enables various services, including cash-in, cash-out, Person-to-Person (P2P), Person-to-Business (P2B), Business-to-Person (B2P), Person-to-Government (P2G), and Government-to-Person (G2P) payments.
While cross-border money transfers remain restricted, inward remittances are disbursed locally through formal banking channels.
Any adult can open an MFS account at agent points or bank branches with valid identification, although multiple accounts with the same provider are not allowed.
