Written by The Banking Post
Mobile financial transactions in Bangladesh dropped sharply by nearly 30% in April 2025, even as digital payment adoption continued to rise nationwide.
Bangladesh Bank data shows total MFS transactions fell to Tk 1.25 trillion in April, compared to Tk 1.78 trillion in March — a month-on-month decline of 29.77%. Transaction volumes earlier stood at Tk 1.71 trillion in January and Tk 1.59 trillion in February.
The decline was largely attributed to two key factors: a temporary data reporting gap from Nagad, one of the country’s largest MFS providers, and a steep fall in remittances sent through mobile channels.
Inward remittances via MFS fell by 35.24% in April to Tk 13.64 billion, down from Tk 21.07 billion in March. Earlier figures show Tk 12.39 billion in January and Tk 12.68 billion in February, highlighting the volatility in remittance inflows.
E-money balances also dropped, falling 25.75% to Tk 127.34 billion in April, reflecting in part the missing transaction data from Nagad for March and April.
Despite this temporary downturn, sector fundamentals remain strong. The number of registered MFS accounts rose to 144.17 million as of April — including 75.55 million in rural areas and 68.63 million in urban centres — underlining continued growth in user adoption and digital payment penetration.
Major players like bKash, Rocket, and Upay continue to expand services, supporting payments for utilities, tuition, retail purchases, and peer-to-peer transfers. Government efforts to incentivise remittance through formal channels have also helped channel funds into the regulated system.
A senior MFS executive, speaking on condition of anonymity, noted that competitive exchange rates, lower cash-out fees, and rising trust in digital platforms are gradually diverting remittance flows from informal hundi networks. “Even politically connected players who relied on hundi are stepping back,” the official observed.
The sector had earlier hit a notable peak in December 2024, when monthly transactions reached Tk 1.65 trillion and the number of active accounts rose to 238.68 million, compared to 652.10 million transactions in November. Remittances through MFS also grew by over 15% to Tk 12.41 billion in December.
Industry insiders view the April slump as a short-term disruption rather than a sign of deeper weakness. With digital payment systems becoming increasingly embedded in everyday life and continued policy support, the mobile financial services sector remains on a solid long-term growth trajectory.
