Written by The Banking Post
Dhaka, July 13– Bangladesh’s mobile financial services (MFS) sector saw a 29.77% month-on-month decline in transaction volumes this April, largely due to a temporary data gap from Nagad and shrinking remittance inflows via mobile platforms, according to Bangladesh Bank data.
Total transactions dropped to Tk 1.25 trillion in April from Tk 1.78 trillion in March, marking the sharpest monthly contraction of the year. Year-on-year figures also slipped, with April 2024 reporting Tk 1.44 trillion in activity.
Remittances via MFS dropped 35.24% to Tk 13.64 billion in April, compared to Tk 21.07 billion the previous month. E-money balances followed suit, declining 25.75% to Tk 127.34 billion—an outcome partially tied to the absence of Nagad’s reporting for March and April.
Despite these setbacks, the sector’s user base remains resilient. Registered MFS accounts stood at 144.17 million as of April 2025, split between 75.55 million rural users and 68.63 million urban subscribers. Leading providers including bKash, Rocket, and Upay continue expanding their footprint for P2P transfers, utility payments, tuition fees, and retail transactions.
A top MFS official, requesting anonymity, said improved exchange rates, reduced cash-out fees, and growing public trust are gradually steering remittance flows away from informal channels like hundi toward licensed digital platforms.
The sector reached a peak in December 2024, when registered accounts soared to 238.68 million and monthly transactions touched 670.05 million, with Tk 1.65 trillion in overall volume. Remittances rose 15.23% that month to Tk 12.41 billion, though e-money balances saw a slight dip to Tk 130.80 billion.
Industry analysts view the April slump as a temporary setback, pointing to continued policy support and expanding digital adoption as drivers of long-term growth in Bangladesh’s mobile financial ecosystem.
