Interoperable Initiative Interrupted: Nagad, bKash Hold Back from MFS Integration Launch

The long-anticipated interoperability system enabling inter-transaction services among Bangladesh’s mobile financial services (MFS), banks, and payment service providers (PSPs) has been officially launched. However, the country’s two largest MFS operators—Nagad and bKash—have not yet joined the system. Nagad remains excluded due to licensing complications, while bKash has opted out temporarily citing “security risks.” bKash has reportedly requested three months to resolve related issues before integration. As a result, the central bank’s ambitious initiative faced a significant setback on its official launch day, November 1.

According to Bangladesh Bank sources, the initial plan was to include 17 institutions in the first phase. However, with Nagad sidelined over licensing concerns, the service began with only 10 participants—Rocket, Islami Bank’s mCash, two PSPs, and seven banks. Five additional entities are expected to join soon.

Sources further indicate that Upay has also requested a 15-day extension before joining the National Payment Switch Bangladesh (NPSB), the core interoperability platform. Meanwhile, Rocket has completed its testing phase and awaits Bangladesh Bank’s final approval for customer-level rollout. Some banks have already initiated MFS transfers through the NPSB channel, including Mutual Trust Bank, which announced that transfers—whether direct or via NPSB—will currently remain free of charge. PSP firms, however, have yet to provide any formal update on their readiness.

Speaking to the media, Bangladesh Bank Executive Director and Spokesperson Arif Hossain Khan explained, “Nagad has been temporarily excluded from the inter-MFS service due to licensing complications. A final decision will be made once the Governor returns to the country. bKash, on the other hand, has cited security issues and sought three months’ time before joining the network.”

The total number of institutions currently connected to the new interoperability service remains uncertain. Bangladesh Bank has stated that it will release a comprehensive report later.

When asked whether such an initiative is justified amid technological complexities, the central bank spokesperson responded, “There is no going back from technology-driven transactions. The world is moving toward a tech-based economy, and the only way forward is to enhance our knowledge and capability.”

bKash’s Head of Corporate Communications and PR, Shamsuddin Haider Dalim, stated, “bKash has been involved with the interoperability initiative from the beginning. We are maintaining regular communication with the relevant departments of the central bank. This service will make digital transactions simpler and safer for customers.”

He added, “However, the system’s effectiveness depends on the preparedness of all stakeholders. We are working to ensure strong authentication and multi-layered security so transactions can proceed smoothly, and any disputes can be quickly resolved. Once all preparations are complete, customers will be able to use the full-fledged service very soon.”

The National Payment Switch Bangladesh (NPSB) currently enables interbank transactions such as withdrawing money from one bank’s ATM using another bank’s card or transferring funds between accounts. Transactions through this network typically take only five to ten minutes. At present, nearly 59 scheduled banks are connected to the NPSB network.