Mobile Financial Services (MFS) in simple terms allow users to transact money or funds via mobile accounts. These generally refer to money transacted electronically against a particular mobile phone number (mobile account), recorded in an electronic general ledger.
Generally, components of MFS include:
- Cash In/Out at agent point,
- Balance Inquiry,
- Talktime Purchase,
- Utility Bill Payment,
- P2P and B2P Fund Transfer,
- P2B Payment,
- Merchant payment by Customer,
- Inward Foreign Remittance Disbursement,
- Bank Account to MFS Wallet Fund Transfer,
- MFS Wallet to Bank Account Fund Transfer,
- Fund Transfer from Card to MFS Wallet,
- Mini Statement Collection,
And others.
Let’s take a look at the 4 most prominent MFS companies in Bangladesh.
MFS Scenario In Bangladesh
As per the latest Bangladesh Bank data, currently, there are 13 MFS providers in Bangladesh as of October 2023. However, the number feels small given the huge population of the country and the number of bank account holders.
However, some major MFS firms are doing great work to boost the economy of the country. Let’s have a look at the top 5 MFS companies of Bangladesh, currently operating throughout the country.
1. bKash
bKash, a pioneer of MFS in Bangladesh, currently leads the pack in the industry. It was launched in July 2011 as a joint venture between Money in Motion LLC, USA, and BRAC Bank Limited.
đź’ˇ International Finance Corporation (IFC) became its equity partner in 2013 and the Bill & Melinda Gates Foundation became its investor in 2014.
bKash was recognized as one of the top 50 companies bringing changes in social concerns by Fortune Magazine’s annual list of “Change the World in 2017”.
By driving technological innovation and maintaining compliance in all dealings, the company has brought a wide range of services to empower customers and bring freedom to their financial transactions.
- Founder/Owner: Mr. Shameran Abed, Chairman, Board of Directors
- Agents: 330,000
- Merchants: 550,000
- Customers: 70 million
- Website: https://www.bkash.com/
- Mobile App: https://www.bkash.com/en/app
- Latest Report on Profits: Tk 38 crore (Jan-Jun 2023)
2. Nagad
Nagad, the Digital Financial Service (DFS) of Bangladesh Post Office (BPO), is the second largest MFS provider in the country. Launched on 26th March 2019, this MFS player is operated as a partnership between Bangladesh Post Office and Third Wave Technologies Ltd.
With a belief that strategic partnerships are the key to providing the people of Bangladesh with the most relevant and impactful digital financial services, Nagad offers affordable financial transaction services with top quality.
At the Global Economics Awards 2021, it was recognized as the Most Innovative Digital Finance Service and Best New Mobile App in Digital Finance, besides being mentioned as “The World’s Fastest-Growing MFS”.
- Founder/Owner: Bangladesh Post Office
- Agents: around 250
- Merchants: over 1200
- Customers: 7.5 million
- Website: https://nagad.com.bd/
- Mobile App: https://play.google.com/store/apps/details?id=com.konasl.nagad&hl=en&gl=US&pli=1
- Latest Report on Profits/Revenue: Tk 517 crore (December 2022)
3. Rocket
Rocket was launched in March 2011, rebranding DBBL’s mobile banking services. Rocket is treated as an online banking process without physical branches. It targets unbanked communities efficiently and at affordable costs.
- Founder/Owner: Dutch Bangla Bank Ltd.
- Agents: 239,003
- Merchants: 20,658
- Customers: 26 million
- Website: https://www.dutchbanglabank.com/rocket/rocket.html
- Mobile App: https://play.google.com/store/apps/details?id=com.dbbl.mbs.apps.main&hl=en&gl=US
- Latest Report on Profits/Revenue: N/A
4. Upay
Upay started its journey in early 2021 receiving a license from Bangladesh Bank. it is the digital financial service brand of UCB Fintech Company Limited, owned by the United Commercial Bank.
Upay offers mobile transactions, utility bill payments, in-store and e-commerce payments, inward remittance, salary disbursement, airtime recharge, and other valuable financial services.
Customers can avail of the services from our nationwide agent and merchant network at an affordable charge. The MFS has managed to integrate itself with many other partner services in industries like clothing, lifestyle, food, travel, health, technology, and more.
- Founder/Owner: UCB
- Agents: refer to the Store Location page
- Merchants: refer to the Partners page
- Customers: over 700,000 (as per source)
- Website: https://www.upaybd.com/
- Mobile App:
- Latest Report on Profits/Revenue: approx. BDT 202,000,000/-
End Words
Starting in 2024 and beyond, you can expect the MFS landscape in Bangladesh to become more regulated, competitive, expanded, and innovative. The five top players mentioned above would need to maintain or up their games to stay in the race as many other leading MFS players are introducing new products and services to cater to the evolving needs of users.
With the government focusing on greater adoption of digital payments and reducing the use of cash transactions, a more efficient and transparent economy awaits in the future. However, with new steps comes new perils like cyber threats that can run rampant on the financial systems, if left unprotected.
We hope the future stays bright for the MFS industry, transforming the way people pay, and earn locally and globally.