In October 2024, Bangladesh’s migrant workers sent home Tk1,102.22 crore in remittances via mobile financial service (MFS) providers, according to Bangladesh Bank data. This marks a remarkable 95.22% year-on-year (YoY) increase from Tk564.61 crore sent in October 2023, highlighting the growing popularity of MFS platforms like Nagad, bKash, Rocket, and Upay offered by scheduled banks.
The increase in remittances reflects the continued rise of MFS as a preferred method for sending money home. In September 2024, Tk1,021.99 crore was sent via MFS, representing a 7.85% increase over September, while remittances in August stood at Tk1,101.81 crore, up from Tk714.48 crore in July.
In October 2024, the number of registered MFS customers reached 234.25 million, with 137.98 million male customers and 96.27 million female customers. Transaction volume also saw a significant rise, reaching 64.37 crore transactions in October, compared to 59.16 crore in September, marking an 8.80% increase. The total transaction volume for October amounted to over Tk1,54,857.32 crore, up from Tk1,45,067.63 crore in September.
According to Shamsuddin Haider Dalim, head of corporate communications at bKash Ltd, the country’s largest MFS provider, the convenience of digital transactions has driven substantial growth in cashless spending, with inward remittances becoming an increasingly popular service. Customer confidence in formal channels has grown, and expatriates are now receiving better exchange rates for their remittances.
bKash allows expatriate Bangladeshis from over 110 countries to send money quickly to their families, particularly in emergencies. Furthermore, cash-out charges have become more affordable, and customers benefit from instant fund transfers.
Since its introduction in 2011 by Bangladesh Bank, the Bank-Led model of MFS has grown rapidly, making Bangladesh the largest MFS market in the world. The system offers several payment services domestically, including Cash In, Cash Out, Person to Person (P2P), Person to Business (P2B), and Government-to-Person (G2P) transfers. While cross-border transfers are not permitted, local inward foreign remittances are allowed via banking channels.
MFS accounts can be opened by any adult with a valid photo ID and legal identification, though one person can only hold one account with each provider.