Bangla QR to Enable P2P Payments

Bangladesh is expanding its interoperable digital payment infrastructure with a major new feature for Bangla QR. From November, customers will be able to make person-to-person, or P2P, payments through Bangla QR. A customer will be able to scan another customer’s Bangla QR code or upload an image of the QR code through the relevant mobile app to transfer money. At the same time, merchant payments will be settled instantly from October 1, while transaction costs are also being reduced.

Bangladesh Bank spokesperson Arief Hossain Khan disclosed the details at a press briefing at the central bank’s headquarters on Wednesday (September 30).

He said some people believe that the expansion of Bangla QR will reduce their business. “They are living in a fool’s paradise,” he said. He added that businesses that do not stay connected with Bangla QR would not survive.

The spokesperson said customers of banks and mobile financial service (MFS) providers can now use their mobile apps to scan Bangla QR codes and pay for purchases at around 3.9 million merchants across the country.

According to Bangladesh Bank data, an average of around 100,000 Bangla QR transactions were completed each day in June. Their average daily value was more than Tk 280 million. The current daily average has increased to around 350,000 transactions, with an average value of about Tk 1.4354 billion.

This means that within just 90 days from July 1, the average number of Bangla QR transactions has increased by about 3.5 times, while their value has risen nearly fivefold. The figures were also reported from the Bangladesh Bank briefing.

To expand Bangla QR adoption, Bangladesh Bank replaced all proprietary QR codes with Bangla QR from July 1 as part of regulatory simplification. It has also taken several measures concerning system efficiency, promotion and pricing.

Education, healthcare and transport are being given special priority to expand the use of Bangla QR, Arief Hossain Khan said.

An operational committee comprising representatives of banks and MFS providers is working alongside a steering committee chaired by the Bangladesh Bank governor. The steering committee includes representatives from different ministries and government departments. The committees are identifying necessary policies and strategic measures for the Bangla QR system.

Merchant Funds to Settle Instantly

From October 1, funds from all Bangla QR-based transactions will be credited instantly to the relevant merchant account. The measure is aimed at encouraging merchants to accept Bangla QR payments.

As a result, merchants will no longer have to wait for payment after customers pay for goods or services. Bangladesh Bank expects the instant settlement facility to increase business interest in Bangla QR.

Transaction Costs to Fall

From October 1, the minimum 1% merchant discount rate, or MDR, charged by acquiring institutions for Bangla QR transactions will be withdrawn. The interchange reimbursement fee for issuing institutions has also been set at zero.

This will significantly reduce the cost of Bangla QR payments at the merchant level. Banks and MFS providers will be able to offer Bangla QR payment services to merchants either free of charge or at a nominal cost. Bangladesh Bank’s circular listings also show recent instructions on Bangla QR transaction incentives and dispute resolution.

Incentives Up to Tk 2,000

A new incentive scheme will also take effect from October 1 to encourage Bangla QR adoption. Bangladesh Bank will provide incentives for each Bangla QR transaction processed through the National Payment Switch Bangladesh platform at merchant points, for transactions of up to Tk 2,000.

Under the scheme, acquiring institutions will receive an incentive equal to 0.10% of the transaction value, while issuing institutions will receive 0.20%. The measure is designed to encourage wider participation by merchants, banks and MFS providers in the Bangla QR-based digital payment ecosystem.

//DBTech/DJN/MSI/DPO//