Is Bangladesh Ready to Go Cashless?

For most of us in Bangladesh, a cashless economy still sounds far away. A rickshaw fare, a cup of tea at the corner stall and the weekly bazar are still paid in notes. Yet the country has moved forward more than many of us notice. bKash and Nagad have made bill payments and money transfers part of ordinary life, and cards, internet banking and QR payments are slowly catching up. According to Bangladesh Bank's Payment Systems Report 2025, digital transactions rose from 482.7 crore in 2024 to 546.3 crore in 2025, a 13 per cent increase in both number and value. Bangla QR reached nearly 9.63 lakh merchants by the end of 2025, and from 1 November that year, banks, MFS providers and payment service providers began offering instant transfers to one another. These are good building blocks. The real question is whether a village shopkeeper, a day labourer and a university student can use these systems easily and cheaply.

For many people, they cannot, and the reasons are practical. Mobile data is expensive for families who depend on prepaid packages. Many buy small packs that last only a week, because a 30-day pack with daily data can cost several hundred taka, before calls and messages. When a payment needs the internet, the customer is also paying for data. Many older people, rural families, women and low-income households still lack a smartphone, steady electricity, digital skills or a financial account. Trust is another worry. Phishing calls, money sent to the wrong number and refunds that take weeks make cash feel safer. Small merchants hold back as well, because of fees, paperwork, tax worries and delays in getting their money. International payments are patchy. PayPal is still not available here. Google Wallet arrived in 2025, but tap-to-pay works only with cards from participating banks.

In October 2025, cash-in and cash-out together made up almost half the value of all MFS transactions. In February 2025, people cashed out about Tk 51,213 crore through MFS, while merchant payments were only about Tk 6,923 crore.

All this shows the difference between having a digital account and actually paying with it. Bangladesh Bank's own monthly figures make the point clearly. In October 2025, cash-in and cash-out together made up almost half the value of all MFS transactions. In February 2025, people cashed out about Tk 51,213 crore through MFS, while merchant payments were only about Tk 6,923 crore. Most people receive money in their wallets and then go to an agent to take it out as cash. That limits the gains. Digital payments can cut the cost and risk of carrying cash, build a record that helps small traders get credit, make government transfers more transparent and support online business. But if cash is pushed out before reliable alternatives exist, those with the least access will pay the price.

Our view, shaped by study in accounting and by research on why customers trust some services and avoid others, is that Bangladesh should aim for a cash-lite economy first. The starting point is cost and access. Mobile data has to become cheaper, through lower bundle prices and a fresh look at taxes and charges on internet use. Bangladesh Bank is reportedly working on QR payments that do not need an internet connection, and that work should move fast. Bangla QR also has to work smoothly across all providers, with low merchant charges and quick settlement, so that street vendors, small shops, transport operators and rural traders find it worth the trouble.

People will not keep paying digitally unless they feel safe doing it. Consumer protection must be stronger, with quick fraud reporting, fast freezing of suspicious accounts, clear refund timelines and simple complaint handling. Customers already have a Bangladesh Bank hotline, 16236, for Bangla QR problems, but very few people know about it; the number should sit beside every QR code. Digital and financial literacy programmes should be run in Bangla and should reach women, older people and villages first. The government can lead from the front, paying salaries, allowances and utility bills digitally while keeping a cash option for people who need it. Policymakers should also make international payments easier, with proper rules and partnerships.

So, is Bangladesh ready to go cashless? Not yet, though it can get there in time, as long as cash does not disappear before everyone can take part. We already have a huge MFS network, growing digital transactions and a QR system in almost every market. What we still need is affordable internet, more merchants on board, systems that work every time and the confidence that our money is safe. For some people, cash will stay the safer choice for a while, and that is fine. A more realistic dream is a cash-lite Bangladesh, where paying digitally is the easiest way to pay, though never the only one.