Digital transactions rise, but cash-based payments still dominate

Digital transactions in Bangladesh increased moderately in 2024, although traditional payment methods such as cash and cheques continued to dominate, according to a Bangladesh Bank (BB) report.

Between December 2023 and December 2024, digital transaction volumes rose from 36.67 crore to 40.31 crore, while their total value increased from Tk 75,140 crore to Tk 76,340 crore, according to the Bangladesh Payment Systems Report 2024 by Bangladesh Bank.

In contrast, non-digital transactions expanded more sharply, with volumes rising from 34.62 crore to 45.49 crore and values from Tk 1.85 lakh crore to Tk 1.95 lakh crore, reflecting a strong preference for over-the-counter and cheque-based payments.

Throughout the year, digital transactions accounted for 47 to 56 percent of total volumes, while non-digital methods represented 60 to 80 percent of total values.

The report noted that people mostly used digital channels for small- and medium-value payments, whereas large-value transactions remained concentrated in traditional modes.

The highest digital share was recorded in April and June (56 percent), driven by Eid-related spending, social safety net disbursements, and annual sales campaigns. December saw the lowest share (47 percent) amid year-end settlements and cash withdrawals.

In terms of value, digital payments peaked in November (35 percent), while April recorded the lowest share (20 percent).

During 2024, around 1.04 crore instruments worth Tk 11.75 lakh crore were cleared through the Bangladesh Automated Cheque Processing System (BACPS), which continued to play a key role in supporting high-volume, paper-based transactions.

The report said the BD-RTGS (Real Time Gross Settlement) system underwent major upgrades, including the adoption of ISO 20022 messaging standards, revised time schedules for local and foreign currency settlements, and preparations for potential round-the-clock operations.

The system processed 54 lakh transactions valued at Tk 26.72 lakh crore during 2024. The growing use of BD-RTGS for currencies including the US dollar, euro, Chinese yuan, Japanese yen, pound sterling, and Canadian dollar highlights its expanding role in Bangladesh's digital finance ecosystem.

Meanwhile, the National Payment Switch Bangladesh (NPSB) facilitated interoperable transactions through ATM, POS, QR, and inter-bank fund transfer (IBFT) channels, settling more than 15.4 crore transactions worth about Tk 2.71 lakh crore in 2024.

IBFT emerged as the dominant mode, accounting for 80 percent of transaction value and 34 percent of volume.

ATM transactions still led in volume (53 percent), while POS and QR payments grew gradually amid policy and awareness challenges.

The report also noted that the Interoperable Digital Transaction Platform (IDTP), branded as Binimoy, saw limited adoption due to cost and interoperability issues that emerged after July 2024.