The Digital Wallet Revolution in Bangladesh

It has been more than a decade since services like Rocket, bKash and Nagad started their journeys in Bangladesh to introduce digital and cashless transactions, easing the lives of normal people in the process. With time, almost the whole nation has adopted these services to pay bills, send money back to loved ones at home or even save money in a digital platform. But, it is common knowledge that people from different age groups have different views about technological advancements.

A Cross-Generational Shift

Yet, it would seem like people, no matter how old or young, who use these services have a similar and positive perspective about these digital platforms. "I have been using BKash since the end of 2017", says Enayet Moula, a private service holder. "I was a bit sceptical at first, but through the years, I cannot believe how easy my life got with bKash. To add an example, a few days back, my son went to buy a pair of shoes alone, but he did not have money. He chose the shoes he wanted to buy and then called me to pay for them through bKash. Life has become so simple with these services."

Consumers seem to be very happy with these services because of their convenience and security. Irrespective of the age gap, everyone seems to be of one mind when it comes to the features given by these systems. Orhan Noor, a college student, says, "I created my bKash account as soon as I got my NID in July. I use it for all my needs, and when I run out of money, I can easily call my father and request him to send me some." When asked if totally converting to a digital currency system is necessary, he says, "Of course it is. Having a digital wallet is more suitable and safer, considering the environment we live in. I definitely hope that in the near future I do not have to carry any physical currency at all." Kader Molla, a senior surgeon, has a more hopeful tone: "I believe that in the future, everyone and everything will shift to digital transactions. You would even need to pay for rides on local buses with digital money. Physical currencies would become obsolete during such a period". Other people, when asked the same, seemed to reply along the same lines he did.

Beyond Payments

As trust in these platforms grows, users are moving beyond simple transfers to utilising financial products like digital savings and nano-loans, though usage patterns differ by age. For the older demographic, the convenience of digital savings schemes (DPS) has been a game-changer. "I used to dread standing in long queues at the bank just to deposit my monthly savings installment," admits Roushan Ara. "Now, I have automated the process through the app. It is linked directly to the bank  but I can manage it from my home." This sense of stability and ease appeals strongly to older professionals and retirees who prioritize long-term security.

Conversely, the younger generation is increasingly leveraging the instant loan facilities. For students and young professionals living on tight budgets, the ability to secure collateral-free "nano-loans" for emergencies is highly appealing. Amrin notes the utility of this feature among her peers: "A friend of mine was recently short on cash for his semester registration fee just a day before the deadline. He took a small digital loan via the app and paid it back the next week. No paperwork, no hassle—just an instant solution." While older users view the platforms as a digital bank branch for savings, the youth view them as a financial safety net for immediate liquidity.

Navigating Fraud

But every garden has its weeds, as there have also been some negative experiences among the users, too. Many people were subjected to deception by some miscreants, using different ploys to convince consumers to tell them their PINs and consequently steal money from their accounts. "It happened back in 2019", started Rakibul Hasan, a businessman, "I was at home when someone called and said that they were from bKash Customer Care and that my number was blocked from bKash for some reason. I panicked because a significant amount of money was in my bKash account. They instructed me to send them a code that was sent to my phone just then, and using some tricks, they also extracted my PIN from me. They took away almost 30,000 taka from my account, and I felt devastated."

The Road Ahead

To foster and nurture the potential sector of MFS, the platforms should take initiatives to ensure financial literacy, as many people are yet to effectively use these services to manage their finances and consequently miss out on their huge potential. These platforms should also strengthen infrastructure and security so that people do not have to fall victim to such ploys as were previously made by those fraudsters. They would also need to diversify services and solidify the loan and investment services further to ensure a cashless future. Most consumers provide positive feedback and seem to look forward to future benefits that they might be able to provide.