Bangladesh stands at a historic turning point in its financial evolution. The Bangladesh Bank’s directive enabling full interoperability across banks, Mobile Financial Services (MFS), and Payment Service Providers (PSPs) represents not just regulatory reform—it marks the foundation of a unified digital economy.
Beginning November 1, 2025, the Bangladesh Bank will officially launch an interoperable digital payment system—a move that promises to break down the walls between banks, mobile wallets, and payment service providers. This historic reform, years in the making, aims to unify the country’s financial ecosystem under one digital framework and pave the way for a more inclusive, efficient, and transparent economy.
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Interoperable Transactions Go Live: Bangladesh Bank Circular
On October 13, 2025, the central bank issued PSD Circular No. 12, directing all banks, Mobile Financial Services (MFS) providers like bKash, Nagad, and Rocket, and Payment Service Providers (PSPs) to integrate with the National Payment Switch Bangladesh (NPSB). This will allow real-time, instant transfers between any account—whether it’s a bank account, a mobile wallet, or a PSP account.
For 170 million citizens, this marks the start of a new era in financial convenience and connectivity. The goal is simple but profound: reduce reliance on cash, cut transaction costs, and make digital money movement universal.
The Problem: A Cash-Heavy Economy
Despite the impressive growth of mobile financial services and digital banking, cash still dominates Bangladesh’s economy. In December 2024, over 71.72% of transactions were cash-based, totaling a massive Tk 19.58 lakh crore.
This dependence on cash comes at a steep price:
- Tk 20,000 crore is spent annually on printing, securing, and transporting currency.
- Tax revenue losses from the informal cash economy are estimated between Tk 55,800 crore and Tk 2,92,500 crore per year—with credible estimates near Tk 2,23,000 crore.
These are not just accounting figures—they represent billions that could have been invested in education, healthcare, and infrastructure. Reducing cash dependency is therefore both an economic and social necessity.
What Is Interoperability and Why It Matters
Interoperability means that all financial service providers—banks, MFS, and PSPs—can send and receive money directly among themselves through a shared infrastructure. Previously, users were trapped in closed systems. A bKash user couldn’t easily send money to a Nagad user, or a bank account holder couldn’t instantly transfer funds to a mobile wallet.
Under the new interoperable framework:
- You can send money from your bank app to any mobile wallet instantly.
- You can transfer funds between different MFS platforms (e.g., bKash to Nagad).
- PSPs can transact freely with banks and MFS providers.
- All transactions are routed through the NPSB, ensuring speed, security, and transparency.
The sender pays a clearly displayed transaction fee, while the receiver pays nothing.
New Fee Structure: Fair, Transparent, and Competitive
Bangladesh Bank has capped transaction fees to protect users while encouraging competition:
- Banks: Maximum 0.15% (Tk 1.50 per Tk 1,000)
- PSPs: Maximum 0.20% (Tk 2 per Tk 1,000)
- MFS Providers: Maximum 0.85% (Tk 8.50 per Tk 1,000)
This “maximum fee” model gives institutions flexibility to charge less or offer rebates. Banks and MFS providers may even choose to subsidize fees to attract users—creating a healthy competitive environment.
For example, transferring Tk 1,000 from a bKash wallet to a Nagad wallet will now cost no more than Tk 8.5—far cheaper and faster than the current system involving multiple intermediaries.
Notably, intra-bank NPSB transfers will still cap at Tk 10 per transaction, as before.
Why Bangladesh Bank Chose a “Maximum Fee” Approach
Rather than fix one price for all, Bangladesh Bank has set upper bounds to provide flexibility:
- Institutions can set lower fees if their cost structure allows
- They can strategically subsidize certain flows or rebate fees
- It preserves competitive differentiation while ensuring user protection
Also, Bangladesh Bank and NPSB do not take any revenue or fees from these transactions—the aim is to encourage adoption, not profit from it.
Will “Add Money” Get More Expensive?
Many users worry that the cost of add-money (i.e. loading wallets from banks) will rise. Under the new regime:
- If the wallet top-up uses NPSB, banks may charge Tk 1.5 per 1,000 (0.15%) as the maximum.
- However, MFS providers may absorb or rebate that fee (e.g. via bonuses) to maintain “free” top-ups.
- Importantly: using non-NPSB routes (existing bilateral APIs or international rails) remains possible, giving providers flexibility.
Because each institution has different costs (agent commissions, infrastructure, etc.), Bangladesh Bank opted for “maximum fee” limits rather than fixed pricing, encouraging healthy competition and service quality.
Where Some Transactions Get Cheaper
One favorable change: MFS wallet → bank account transfers will see reduced costs. Under the previous rules, these could cost Tk 10.5 to 12.5 per thousand. The interoperable cap lowers this to Tk 8.5 per thousand.
This benefits freelancers, online merchants, and users who frequently cash out from wallets to banks.
From Fragmentation to Flow: Breaking Down Barriers
Until now, Bangladesh’s digital payment landscape was fragmented. MFS giants like bKash and Nagad built vast networks but operated as closed ecosystems. Banks expanded digital services, but cross-platform transactions required manual workarounds or third-party apps like Binimoy.
Interoperability changes that forever.
Now, a garment worker in Dhaka can transfer money from her bank account directly to her mother’s mobile wallet in Khulna within seconds—no cash withdrawals, no agent visits, no delay. When scaled across millions of transactions, this efficiency will generate enormous time and cost savings.
Economic Impact: Efficiency Meets Transparency
Interoperability is more than a technical upgrade—it’s a national economic reform.
- Efficiency and Cost Savings
Managing cash is expensive. Digital rails cut these costs, freeing up thousands of crores for productive investment. - Transparency and Accountability
Every digital transaction creates an audit trail, helping reduce tax evasion, corruption, and theft. It also builds a financial footprint for small traders and micro-entrepreneurs. - Financial Inclusion
By connecting all systems, interoperability ensures that urban and rural populations alike can access digital finance—without switching platforms or learning new tools.
Together, these benefits can accelerate Bangladesh’s transition toward middle-income status and support the broader Smart Bangladesh 2041 vision.
The Fintech Revolution: From Products to Platforms
For fintech companies and digital banks, interoperability is a once-in-a-generation opportunity. It turns isolated financial products into connected ecosystems.
- Merchant Empowerment: Small businesses can now accept payments from any wallet or bank. A single QR code can replace multiple apps and POS machines.
- Remittance Efficiency: With $27 billion in remittances received in 2024, interoperability will allow funds to reach families instantly, cutting transaction fees.
- Credit Expansion: Unified transaction data enables alternative credit scoring, allowing small entrepreneurs to qualify for microloans and formal credit.
In short, interoperability transforms access into empowerment—enabling real economic participation for millions.
The Three Pillars of Interoperability
1. Bangla QR: Universal Digital Acceptance
The rollout of Bangla QR is revolutionizing merchant payments. This single standardized QR code allows customers to pay any merchant using any bank or wallet app.
For small shops, pharmacies, or roadside stalls, it removes the burden of managing multiple accounts—making digital acceptance as simple as cash.
Early results show:
- Merchant onboarding costs reduced by over 60%
- Acceptance rates rising rapidly in SMEs outside Dhaka
Bangla QR is the simplest path to a cashless Bangladesh.
2. White Label Agent Networks (WLANs): Expanding Reach
Bangladesh’s 1.4 million MFS agents are unevenly distributed—mostly urban. WLANs solve this by letting a single agent serve customers from any provider.
This shared network:
- Increases agent income by 25–30%
- Expands rural financial access
- Reduces duplication of costly infrastructure
To succeed, WLANs require standardized KYC, shared compliance systems, and strong oversight—ensuring the same service quality nationwide.
3. Payment Initiation Services (PIS): Opening the Banking System
PIS introduces open banking to Bangladesh. Licensed third parties can initiate payments from a user’s account securely and instantly, without credential sharing.
Benefits include:
- Faster online checkout (“Pay from Bank” options)
- Lower transaction costs (up to 50% cheaper than cards)
- Embedded finance—such as instant farm loans or healthcare installment payments within partner apps
With clear consent management and cybersecurity standards, PIS can become the backbone of Bangladesh’s open financial ecosystem.
Challenges on the Road to Implementation
While the framework is visionary, execution will define its success. Bangladesh must navigate several challenges:
- System Resilience – NPSB must withstand massive transaction spikes during festivals, payroll days, or government disbursements.
- Cybersecurity – As integration deepens, fraud risks increase. Providers must share real-time threat intelligence.
- Consumer Protection – Clear dispute-resolution mechanisms are essential for multi-party transactions.
- Data Governance – Bangladesh needs strong data privacy and consent frameworks to protect users while enabling innovation.
Global Lessons: From UPI to M-Pesa
India’s UPI shows the power of open, low-cost payment rails—now handling over 10 billion transactions monthly. Its success lies in zero-cost transfers, open APIs, and widespread merchant adoption.
Kenya’s M-Pesa highlights the importance of a strong agent network for inclusion. Interoperability between MFS providers later accelerated its growth.
Bangladesh’s approach smartly combines both lessons: rural physical access through WLANs and urban digital integration through NPSB and PIS.
The Road Ahead: From Policy to Prosperity
The November 1, 2025 launch is only the beginning. Success will depend on:
- Seamless technical integration among banks, MFSs, and PSPs
- Proactive fintech innovation built on interoperable rails
- Continuous merchant and user education to build trust
- A regulatory balance that ensures safety without stifling innovation
If managed wisely, interoperability could become Bangladesh’s most transformative financial reform since mobile banking’s debut in 2011.
The question is no longer “How do we move money?”
It’s “How do we build a better, smarter Bangladesh through digital finance?”
Conclusion
Interoperability redefines how Bangladesh moves, manages, and measures money. It transforms the payment question from “How do we send money?” to “How do we build prosperity through digital finance?”
If executed with vision and discipline, this reform could convert Tk 20,000 crore in cash handling costs and Tk 2,23,000 crore in lost tax revenue into productive capital. It will turn financial access into financial empowerment—linking every citizen, business, and institution into a shared digital future.
As Bangladesh tears down the walls between banks and mobile wallets, the nation steps closer to an economy that is inclusive, efficient, transparent, and digital-first.
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