Bangladesh is at the forefront of mobile money adoption in South Asia, making a significant impact on financial inclusion and economic growth, according to the Global System for Mobile Communications Association (GSMA) “State of the Industry Report on Mobile Money 2024.” The report highlights the global growth of mobile money, with approximately $2.7 million being transacted every minute globally in 2023.
Mobile money is positively affecting people’s lives and contributing to economic growth, with a 10 percentage point increase in mobile money usage boosting a country’s GDP by up to 1%. This trend is clearly evident in Bangladesh, where mobile financial services (MFS) have become a vital tool for financial inclusion. MFS platforms now offer a range of services beyond just cash-in, cash-out, and money transfers, including bill payments, donations, salary disbursements, loans, and savings options. Platforms like bKash have also made it easier for Bangladeshis abroad to send remittances with just a few clicks.
According to the GSMA report, 2023 saw a 12% increase in the number of registered MFS accounts globally, reaching 1.75 billion, with $1.4 trillion transacted through these accounts. The mobile money sector contributed $600 billion to global GDP from 2013 to 2022. International remittances via mobile money saw a 33% increase in 2023, reaching $29 billion. Additionally, merchant payments increased by 14%, and mobile-to-bank transactions saw a 50% growth.
In Bangladesh, mobile money awareness has grown significantly, with 81% of men and 72% of women now aware of MFS. The number of MFS accounts in Bangladesh reached 224.5 million in 2023, accounting for 56.12% of South Asia’s total MFS accounts and 12.82% of the global total. The number of mobile money customers in Bangladesh grew by 18% in 2023, outpacing the South Asian average of 11%.
bKash, Bangladesh’s largest MFS provider, has contributed significantly to the global growth of the mobile money sector. In 2023, bKash’s transaction volume grew by 24%, and its customer base reached 74.05 million, a 9% increase from the previous year. bKash also saw substantial growth in its agent and merchant networks. In 2023, bKash’s agent count rose by 13% to 364,165, and the merchant count increased by 176% to 793,642. The company also witnessed a 50% increase in remittances in 2023 and a 65% increase in 2024.
bKash’s strong ecosystem, developed in collaboration with over 100 international money transfer organizations and top banks, has made it easier for expatriate Bangladeshis to send remittances directly to their loved ones, reinforcing Bangladesh’s leadership in mobile money and financial inclusion in South Asia.
