Bangla QR P2P Payments to Launch in November as Transaction Costs Fall

Bangladesh Bank will introduce person-to-person (P2P) transactions through Bangla QR from November, allowing users to transfer money by scanning another customer’s Bangla QR code or uploading an image of the code through a compatible mobile app.

Bangladesh Bank Executive Director and spokesperson Arief Hossain Khan announced the plan at a press briefing at the central bank headquarters in Motijheel on September 30.

He said Bangla QR is a government initiative and rejected concerns that its expansion could negatively affect the businesses of banks or mobile financial service (MFS) providers.

Currently, customers of banks and MFS providers can use Bangla QR through their mobile apps to make payments at around 3.9 million merchants nationwide.

According to Bangladesh Bank data, daily Bangla QR transactions have increased significantly since July. Average daily transactions rose from around 100,000 in June to approximately 350,000, while the average daily transaction value increased from more than Tk28 crore to around Tk143.54 crore.

The central bank said it has taken several measures to expand Bangla QR adoption and simplify the digital payment system.

Instant Merchant Payments from October 1
From October 1, payments made through Bangla QR will be credited instantly to merchants’ accounts, eliminating the previous waiting period for receiving funds.

Bangladesh Bank expects the change to encourage more merchants to adopt QR-based payments.

Merchant Transaction Costs to Decline
The minimum 1% merchant discount rate (MDR) on Bangla QR transactions will also be withdrawn from October 1.

At the same time, the interchange reimbursement fee for issuing institutions will be set at zero. This is expected to reduce payment costs for merchants and allow banks and MFS providers to offer Bangla QR services either free of charge or at lower rates.

Incentives for Transactions Up to Tk2,000
Bangladesh Bank is introducing incentives for Bangla QR transactions of up to Tk2,000 processed through the National Payment Switch Bangladesh platform.

Under the scheme, acquiring institutions will receive an incentive equivalent to 0.10% of the transaction value, while issuing institutions will receive 0.20%.

Education, Healthcare and Transport in Focus
Bangladesh Bank also plans to expand Bangla QR payments across the education, healthcare and transport sectors.

In healthcare facilities, QR payments could help reduce queues and eliminate difficulties involving small amounts of change. The system could also be used for school fees and small purchases at educational institutions.

In the transport sector, QR-based toll payments could help reduce waiting times at toll plazas by reducing reliance on cash transactions.

Bangladesh Bank has formed committees involving representatives from banks, MFS providers and government agencies to develop policies and strategies for expanding the Bangla QR system.