Push for a cashless economy
Zero Fee Bangla QR Cashless Payments Service launched at Banani market
- Bangla QR transactions will not require additional fees or charges.
- Merchant payments will be settled instantly from October 1.
- Person-to-person QR transfers will start from November.
Bangladesh Bank has moved to make interoperable Bangla QR payments easier and more affordable as part of efforts to build a cashless economy. On Thursday, October 1, Finance Minister Amir Khosru Mahmud Chowdhury formally launched Bangla QR-based purchases at Banani Kitchen Market in Dhaka. Under the new system, merchant payments will be settled instantly, while the mandatory minimum Merchant Discount Rate has been removed to reduce transaction costs.
The initiative to replace proprietary QR systems with the universal Bangla QR began on July 1. The move aims to expand cashless transactions and make interoperable digital payments easier across banks and mobile financial service providers.
The finance minister inaugurated the fintech service at Banani Kitchen Market by cutting a ribbon and releasing balloons. He also inspected Bangla QR-based transactions at the market.
Amir Khosru Mahmud Chowdhury said there would be no fees or charges for Bangla QR-based transactions under the government’s initiative to build a cashless Bangladesh and digital economy. He said QR-based transactions would be completed without any additional charge.
He said street food vendors, rickshaw pullers, small businesses and people from all sections of society would be brought under QR-based digital financial services. Consumers and small merchants will be able to receive payments through QR codes into accounts with any participating bank or service provider. This will reduce the need to carry cash and make transactions faster and easier.
The minister said some minor technical challenges or temporary problems might appear during the initial phase, but they could be resolved quickly. He noted that cashless transactions have already proved effective and secure in many developed and rapidly growing economies. Bangladesh Bank is working to make this international practice widely available in Bangladesh.
He urged citizens, businesses and service providers to participate in the government initiative to build a cashless and secure economy.
Earlier, on Wednesday, September 30, Bangladesh Bank Executive Director and spokesperson Arif Hossain Khan said payments made through Bangla QR would be credited instantly to merchants’ accounts from October 1. The central bank has also removed the mandatory minimum 1 percent Merchant Discount Rate for acquiring institutions and set the Interchange Reimbursement Fee at zero for issuing institutions.
Bangladesh Bank has also introduced incentives for Bangla QR transactions of up to Tk 2,000 at merchant points. Acquiring institutions will receive an incentive of 0.10 percent, while issuing institutions will receive 0.20 percent for eligible transactions routed through the National Payment Switch Bangladesh.
Bangla QR will also support person-to-person transactions from November 1. Users will be able to transfer money by scanning another person’s Bangla QR through participating bank or mobile financial service apps. They will also be able to upload a saved QR image from their phone.
According to recent Bangladesh Bank data, average daily Bangla QR transactions rose from around 100,000 in June to about 350,000 in September. Average daily transaction value increased from around Tk 28 crore to Tk 143.54 crore during the same period. Around 3.9 million merchant points are now connected to Bangla QR through banks, mobile financial services and payment service providers.
//DBTech/SKR/SME/FTP//
Bangladesh Bank has moved to make interoperable Bangla QR payments easier and more affordable as part of efforts to build a cashless economy. On Thursday, October 1, Finance Minister Amir Khosru Mahmud Chowdhury formally launched Bangla QR-based purchases at Banani Kitchen Market in Dhaka. Under the new system, merchant payments will be settled instantly, while the mandatory minimum Merchant Discount Rate has been removed to reduce transaction costs.
The initiative to replace proprietary QR systems with the universal Bangla QR began on July 1. The move aims to expand cashless transactions and make interoperable digital payments easier across banks and mobile financial service providers.
The finance minister inaugurated the fintech service at Banani Kitchen Market by cutting a ribbon and releasing balloons. He also inspected Bangla QR-based transactions at the market.
Amir Khosru Mahmud Chowdhury said there would be no fees or charges for Bangla QR-based transactions under the government’s initiative to build a cashless Bangladesh and digital economy. He said QR-based transactions would be completed without any additional charge.
He said street food vendors, rickshaw pullers, small businesses and people from all sections of society would be brought under QR-based digital financial services. Consumers and small merchants will be able to receive payments through QR codes into accounts with any participating bank or service provider. This will reduce the need to carry cash and make transactions faster and easier.
The minister said some minor technical challenges or temporary problems might appear during the initial phase, but they could be resolved quickly. He noted that cashless transactions have already proved effective and secure in many developed and rapidly growing economies. Bangladesh Bank is working to make this international practice widely available in Bangladesh.
He urged citizens, businesses and service providers to participate in the government initiative to build a cashless and secure economy.
Earlier, on Wednesday, September 30, Bangladesh Bank Executive Director and spokesperson Arif Hossain Khan said payments made through Bangla QR would be credited instantly to merchants’ accounts from October 1. The central bank has also removed the mandatory minimum 1 percent Merchant Discount Rate for acquiring institutions and set the Interchange Reimbursement Fee at zero for issuing institutions.
Bangladesh Bank has also introduced incentives for Bangla QR transactions of up to Tk 2,000 at merchant points. Acquiring institutions will receive an incentive of 0.10 percent, while issuing institutions will receive 0.20 percent for eligible transactions routed through the National Payment Switch Bangladesh.
Bangla QR will also support person-to-person transactions from November 1. Users will be able to transfer money by scanning another person’s Bangla QR through participating bank or mobile financial service apps. They will also be able to upload a saved QR image from their phone.
According to recent Bangladesh Bank data, average daily Bangla QR transactions rose from around 100,000 in June to about 350,000 in September. Average daily transaction value increased from around Tk 28 crore to Tk 143.54 crore during the same period. Around 3.9 million merchant points are now connected to Bangla QR through banks, mobile financial services and payment service providers.
//DBTech/SKR/SME/FTP//
