Bangladesh Emerges As South Asia’s Mobile Money Trailblazer, GSMA Report3 min read

In a rapidly evolving global financial landscape, mobile money is reshaping economies and transforming lives. According to the 2024 GSMA report, “The State of the Industry Report on Mobile Money,” a staggering $2.7 million (nearly Tk33 crore) was transacted globally every minute via mobile phones in 2023, highlighting the explosive growth of mobile financial services (MFS) worldwide and Bangladesh reportedly.

The GSMA, a London-based nonprofit representing global mobile network operators, reports that mobile money contributes significantly to economic growth. From 2013 to 2022, a 10% increase in mobile money usage raised GDP by 0.4% to 1.0%, proving its far-reaching impact on people’s livelihoods.

With 1.75 billion registered mobile money accounts globally in 2023 – a 12% increase from the previous year—the sector is spearheading financial inclusion. Transactions through these accounts reached an impressive $1.4 trillion, a 14% growth from 2022. Over the decade, mobile money added $600 billion to the global GDP.

Bangladesh stands out as a leader in South Asia, with mobile financial services driving financial inclusion across the nation. The country boasts 224.5 million registered MFS accounts in 2023, representing 56.12% of South Asia’s total mobile money accounts and 12.82% of global accounts.

Read more: Bangladesh’s Apparel Exports to the US Soar 41.6% in November 2024

MFS platforms in Bangladesh, such as bKash, have moved beyond traditional services like cash-in, cash-out, and money transfers. Today, they facilitate payments of utility bills, donations, stipends, and salaries, while also offering loans and savings options. bKash has made international remittance transfers easier for expatriates, enabling direct transactions with just a few clicks.

In 2023, international remittances via mobile money soared by 33%, increasing from $22 billion in 2022 to $29 billion. Merchant payments grew by 14% to $74 billion, and average transactions per active account rose to $169, up from $163 in 2022. Transactions between bank accounts and mobile platforms surged, with a total value of $210 billion – a 50% increase from 2022 and a 250% rise since 2020.

Bangladesh outpaced its regional peers, achieving an 18% growth in MFS customers compared to South Asia’s overall 11% increase. The country’s growing awareness of mobile money has been instrumental, with 81% of men and 72% of women familiar with MFS, surpassing India, Pakistan, and Indonesia. Globally, only Kenya and Senegal rank ahead of Bangladesh.

As Bangladesh’s largest MFS provider, bKash has consistently contributed to global mobile money growth, outperforming the global average in some areas:

• Customer Growth: bKash’s user base grew to 74.05 million in 2023, a 9% increase from the previous year. Previous years saw customer growth rates of 32% (2020), 14% (2021), and 13% (2022).
• Agent Expansion: bKash agents numbered 364,165 in 2023, a 13% growth, following significant increases in earlier years: 26% (2022) and a record 253% (2021).
• Merchant Network: The number of merchants skyrocketed by 176% in 2023, reaching 793,642, continuing strong growth trends.

Remittance inflows through bKash saw remarkable growth, increasing 50% in 2023. This upward trajectory has accelerated in 2024, with remittances up by 65% compared to 2023. By collaborating with over 100 international money transfer organizations (MTOs) and leading commercial banks, bKash has built a robust ecosystem that enables Bangladeshi expatriates from 140 countries to send money seamlessly to their loved ones.

Bangladesh’s rapid adoption of mobile financial services exemplifies how innovation can revolutionize economies. With mobile money becoming the most influential medium for financial inclusion worldwide, Bangladesh’s leadership in this space sets a compelling example for the region and beyond.

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