Scrap Bangla QR service charge to build cashless Bangladesh: BMPCA

Bangladesh Mobile Phone Consumers’ Association (BMPCA) on Sunday demanded withdrawal of the existing service charge on Bangla QR transactions, saying the fee is discouraging small and medium merchants from adopting digital payments and undermining the government's cashless Bangladesh initiative.

In a statement, the association said Bangla QR is a key vehicle for achieving the government's declared goal of building a cashless and smart Bangladesh, but the existing Merchant Discount Rate (MDR) is proving a major barrier for small and medium businesses, many of whom remain reluctant to accept QR payments as a result.

BMPCA said Bangladesh currently charges around 1 percent, including VAT, as merchant fee on Bangla QR transactions.

Although the charge is nominally levied on merchants, the association said its cost is often passed on to consumers through higher prices for goods and services.

Small traders, kitchen markets, hawkers, transport operators, pharmacies, educational institutions and rural entrepreneurs bear the brunt of this additional cost, it said.

Citing international practice, the association said many countries have kept QR-based payment fees extremely low or at zero to popularise digital transactions.

It noted that India's UPI charges no MDR on most common merchant transactions, while Thailand's PromptPay, Singapore's PayNow and Malaysia's DuitNow QR all keep fees at zero or minimal levels for small merchants.

Indonesia's QRIS also charges lower fees than Bangladesh, the statement said, adding that such supportive policies have driven rapid growth in digital transactions and a significant decline in cash usage in these countries.

BMPCA placed a five-point set of demands before the government- full withdrawal of the existing service charge (MDR) on Bangla QR transactions, or reduce it to a maximum of 0.25 percent, exemption of small and medium businesses from any Bangla QR charge for at least five years, providing tax incentives and financial support to merchants accepting digital payments, making interbank and mobile financial service QR transactions faster, more seamless and more secure, launching  a coordinated national awareness campaign involving the government, Bangladesh Bank, banks, mobile financial service providers and payment operators to expand Bangla QR usage nationwide.

BMPCA President Mohiuddin Ahmed said a cashless economy is not a luxury but essential infrastructure for running a modern state.

“Imposing extra charges on digital transactions can never wean people off cash,” he said, adding that the experience of successful countries shows that lower costs drive higher digital transaction volumes.

Mohiuddin said there is no alternative to immediately withdrawing or minimising the Bangla QR service charge if Bangladesh is serious about building a cashless economy.�"UNB