Alongside consumer awareness and fostering digital transaction habits, a multi-pronged strategy is required to popularise digital payments in everyday life. An essential shift in user behaviour along with strengthening the foundational digital ecosystem is required, while systemic reinforcement to enhance cooperation between businesses and financial institutions, diversifying digital transactions, improving digital literacy as well as internet infrastructure were emphasised, a press release said.
The suggestions and recommendations came at a recent discussion titled “Digital Payment in the Port City,” held at The Peninsula Chittagong, organised by the country’s largest mobile financial service (MFS) provider bKash. Entrepreneurs and representatives from Chattogram-based Barcode Café, Chattogram Maa-O-Shishu General Hospital, Radisson Blu Chattogram Bay View, Epic Healthcare, Utshab Supermarket, Chittagong Club Limited, Shajinaz Hospital Limited, online travel agency Amy, Chittagong Eye Infirmary and Training Complex, Shoilpik, The Peninsula Chittagong, Shopping Bag, and several other organisations spoke at the event chaired by bKash’s Chief Commercial Officer Ali Ahmmed.
The Chattogram-based entrepreneurs at the event noted that people can spend entire day without using cash in many countries. Meanwhile, people in Bangladesh are also growingly getting habituated in digital payments; however, more awareness activities are required to genuinely encourage customers to adopt digital payment in their lifestyle.
They suggested for region-specific campaigns in local dialects to effectively engage customers in diversified digital transactions. Besides, for elderly and tech-averse individuals, hands-on training in digital transaction process could be beneficial.
Some superstore entrepreneurs mentioned that at least 70% of their customers pay digitally—via bank cards or MFS platforms like bKash. With proper initiatives, this rate could exceed 90% mark. They believe offering special discounts or incentives could further encourage digital payments.
Additionally, speakers pointed out that many middle and lower-middle-class customers, despite being interested in digital payments, cannot access the digital payment ecosystem due to not having smartphones and internet connection. In that case, businesses accepting digital payments could provide Wi-Fi at billing counters as well as demonstrate USSD-based payment methods to help increase digital payment.
Welcoming the suggestions and recommendations at the event, bKash’s Chief Commercial Officer Ali Ahmmed said, “Although a large portion of digital transactions is still limited to sending and withdrawing money, at least 10 million people in Bangladesh make different types of digital payments daily. This number can be multiplied with the right policy support as well as coordination and partnerships among tech companies, businesses and financial institutions.”
Mentioning that the expansion of digital transactions everywhere will bring down costs at consumer level, he said, “In addition to increasing usage of technology, there is a great opportunity to work on how to encourage people, who are anxious about using technology, to get comfortable in digital transactions.”
It is worth noting that bKash currently has about 82 million verified registered customers and about a million merchants, which have been playing significant role in democratising digital transactions for all.
The government and the central bank have been emphasising the necessity of a cashless economy for the past several years. However, around 72% of total transactions in the country are still cash-based, and the government spends over TK 200 billion annually on cash management that includes printing, storing and transporting banknotes. Economic policymakers, including the central bank, believe this cost can be halved by spreading digital transactions across all levels of society.
To that end, the government is working to provide necessary policy support, such as promoting digital banks, private credit bureaus, interoperability among banks and MFS providers, and supporting low-cost smartphone production. Additionally, to modernise transactions and reduce costs, the government has made the use of Bangla QR mandatory for trade license renewals.
