MuktoPay Targets Bangladesh’s Digital Banking Market

Bangladesh’s digital financial services market is set to see a new contender as VEON-backed Banglalink introduces MuktoPay, a payment platform designed to become part of a broader digital banking ecosystem. Beyond mobile transactions, the initiative envisions digital banking, nano-loans, wider merchant acceptance and uninterrupted payments during power outages and network disruptions. VEON plans to launch a digital bank within six months, while also preparing MuktoPay to work with Starlink satellite connectivity and become accessible through payment terminals and mobile phones.

The plans were outlined on Tuesday, November 3, at the ‘VEON Board Press Meet’ held at Crowne Plaza Dhaka Airport by IHG in the capital. The event coincided with VEON’s first-ever board meeting in Bangladesh. MuktoPay was formally announced in the evening, with Banglalink confirming that transactions would carry no service charges for the first three months.

The event featured VEON Founder and Chairman of the Board Augie K Fabela, VEON Group CEO and Board Member Kaan Terzioglu, and Banglalink CEO Johan Buse. Other VEON board members in attendance included Andrei Gusev, Sir Brandon Lewis, Duncan Perry and Michiel Soeting. Banglalink Chief Corporate and Regulatory Affairs Officer Taimur Rahman moderated the discussion.

A digital bank within six months

Responding to journalists, VEON CEO and Board Member Kaan Terzioglu outlined what he described as MuktoPay’s key differences from existing payment platforms: simplicity, convenience and affordability.

“What is the difference between MuktoPay and existing payment platforms? Number one: it is simple, seamless and much more affordable,” he said.

Terzioglu argued that affordable financial transactions are essential to unlocking people's untapped potential. High transaction costs and limitations in existing financial services, he suggested, prevent many people from accessing new economic opportunities.

The second major component of the initiative is a digital bank.

“Number two: digital banking. We are working towards launching a digital bank within the next six months. Currently, digital banks are almost non-existent in Bangladesh,” he said.

Drawing comparisons with Malaysia and Singapore, he noted that these countries did not have today's digital banking ecosystem eight to nine years ago.

A digital bank, he explained, enables instant transactions at lower costs and effectively turns a customer's mobile phone into a bank, reducing the need for conventional physical branches.

Nano-loans for everyday earners

Terzioglu identified nano-loans and microcredit as another major opportunity offered by digital banking.

Referring to VEON's partner operations in Pakistan, he said similar technology-driven lending opportunities could help people in Bangladesh become more productive and access new economic possibilities.

He illustrated the concept with a rickshaw puller who needs money in the morning to pay the daily rental for his vehicle.

Under such a model, the driver could take a small loan in the morning, earn money throughout the day and repay the loan by the end of the day.

The idea, he suggested, is to design financial products around people's everyday economic needs rather than requiring them to adapt to conventional banking structures.

“Let us not forget that 50 percent of people in Bangladesh do not have a bank account and are underserved. The whole thing is about creating opportunities,” he said.

The statement highlights a broader ambition: bringing people outside the traditional banking system into the formal financial ecosystem through accessible digital services.

Traceable payments and tax collection

Terzioglu also linked digital banking to one of Bangladesh's broader economic challenges: low tax collection relative to GDP.

He argued that digital banking could help address the problem by making transactions traceable and creating a digital record of economic activities.

Referring to Singapore, he said cash transactions had become relatively uncommon, with people increasingly paying through cards and contactless mobile transactions.

He also identified two additional advantages of reducing cash dependence.

First, lower cash circulation could reduce the central bank's expenditure on printing physical currency. Second, digital payments could be safer than carrying large amounts of cash.

However, he placed the greatest emphasis on the social impact of financial technology: giving ordinary people greater opportunities to improve their economic circumstances and become more productive members of society.

Making MuktoPay compatible with Starlink

MuktoPay's future development is also expected to address connectivity challenges, particularly in remote areas and locations affected by power disruptions or natural disasters.

Terzioglu said the application should be compatible with Starlink satellite connectivity and optimised to complete transactions from anywhere in the country.

“The MuktoPay application needs to be able to work with Starlink satellites. The application needs to be optimised or prepared in such a way that it can complete transactions from anywhere in the country. That is how we will build a digital environment,” he said.

Responding to the suggestion, Banglalink CEO Johan Buse said:

“That is exactly our plan. Thank you for the homework!”

Buse added that MuktoPay should be embedded in every payment terminal and every mobile phone.

He explained that when merchants cannot process transactions because of power outages, the resulting disruption can cause significant economic losses for the country. He believes the problem can be addressed through more resilient payment infrastructure.

To illustrate the point, he referred to Banglalink's home Wi-Fi service, which comes with battery backup.

According to Buse, merchants have told the company that battery-backed home Wi-Fi allows them to continue running their businesses even when electricity is frequently unavailable.

He described this as another example of how resilient connectivity can support uninterrupted commercial activity.

The remarks indicate that Banglalink's ambition extends beyond building another mobile payment application. It wants to develop a payment ecosystem capable of functioning despite electricity and connectivity constraints.

From telecom operator to digital operator

During the event, VEON Founder and Chairman Augie K Fabela and Group CEO Kaan Terzioglu outlined the company's broader transformation from a traditional telecommunications operator into a digital services provider.

Banglalink CEO Johan Buse also presented the company's journey in Bangladesh and its expansion into entertainment, artificial intelligence and digital financial services.

Terzioglu explained that telecommunications networks remain the foundation of VEON's business. However, consumer and enterprise services built on top of those networks are increasingly defining the company's identity and growth.

Across its operating markets, including Bangladesh, Pakistan, Ukraine and Kazakhstan, VEON is expanding into financial services, entertainment, marketplaces, delivery, healthcare, education, cloud services and artificial intelligence.

According to Terzioglu, these digital businesses currently account for approximately 30 percent of VEON's overall operations, with the share growing towards a 50 percent target.

He also traced the company's 35-year evolution.

VEON initially sold telephone minutes. It later expanded into SMS, followed by 3G connectivity and mobile internet data measured in megabytes and gigabytes.

The next stage, he said, is no longer about selling minutes, messages or data volumes. Instead, the objective is to deliver meaningful digital services that remain relevant to customers throughout their daily lives.

Satellite connectivity to overcome network limitations

VEON's leadership also highlighted satellite connectivity as a strategic component of its future network infrastructure.

Terzioglu said the company had partnered with Starlink to integrate satellite connectivity with its terrestrial networks.

He cited Ukraine's wartime conditions, where security threats and landmines can prevent engineers from accessing certain areas to maintain network infrastructure.

Kazakhstan presents a different challenge because of its vast geographical area and remote desert regions, where comprehensive terrestrial coverage is difficult.

In Bangladesh, floods and electricity disruptions create additional challenges for conventional network infrastructure.

Satellite connectivity, he argued, can help address some of these limitations.

Terzioglu claimed that VEON currently accounts for 60 percent of global Direct-to-Device satellite coverage. He also acknowledged the Bangladeshi government's support in recognising the potential of the technology.

Even a single SMS message confirming someone's safety during a disaster could make a meaningful difference, he said.

Reflecting on Bangladesh's current challenges, including energy shortages, he expressed confidence in the country's resilience and its potential to build advanced digital infrastructure.

He envisioned a future in which affordable artificial intelligence tools would help individuals, businesses and the country become more capable and productive.

Toffee, RYZE and an expanding digital portfolio

The event also showcased Banglalink's existing and newly launched digital services.

Toffee, the company's entertainment-focused digital platform, currently has 7 million monthly users, according to information presented at the event.

Banglalink has also launched RYZE, an AI-powered lifestyle brand targeting nearly 50 million young people.

Its device brand, Techvane, is working to make smartphones more affordable.

Over the past two months, Banglalink has introduced four major services as part of its transformation into a digital operator: Toffee, RYZE, Sorterlink and Mukto App. The newly announced MuktoPay adds a fintech component to this portfolio.

The company also highlighted its launch of Starlink-powered Direct-to-Cell services, describing Banglalink as the first operator in South Asia to introduce the service.

According to Banglalink, the company has evolved from a new market entrant into a full-fledged digital operator over two decades.

It currently serves 40 million customers across Bangladesh. The company also cited investments of US$2.5 billion, tax contributions of US$4 billion and the creation of 10,000 jobs in the country.

Banglalink said it would continue expanding connectivity and digital inclusion in alignment with the government's ‘Digital for All’ initiative.

Financial inclusion becomes the next competitive frontier

MuktoPay's launch signals a new phase in Banglalink's business strategy. Its ambitions now extend beyond telecommunications and entertainment into digital payments, banking and financial inclusion.

However, transforming a payment platform into a fully operational digital bank, introducing nano-loans and ensuring uninterrupted transactions across remote areas will require substantial execution.

The next six months will be particularly important, given VEON's stated digital banking launch target. The three-month zero-service-charge offer and plans for Starlink-compatible payment infrastructure will also test the platform's ability to attract merchants and consumers.

Ultimately, MuktoPay's success will depend not simply on its technology, but on how effectively it can bring unbanked people, small merchants and underserved communities into Bangladesh's evolving digital economy.

//DBTech/IH/SME/MIST//