Top 5 Recommended Local Payment Tools in Bangladesh: Secure and Convenient Payment Options

In today's fast-growing digital economy, the e-payment market in Bangladesh is also showing a boom. In this article, we will give you a detailed overview of the top 5 most trusted local payment tools in Bangladesh in 2023 to help you find the best financial solution for you in this emerging South Asian market.

1. bKash: a leader in mobile payments

bKash is undoubtedly the most popular mobile financial services provider in Bangladesh with over 50 million registered users. As a platform backed by BRAC Bank, bKash has revolutionised the traditional model of cash transactions in the country.

Core Functionality Highlights::

• Instant Transfer Service supports 24/7 operation
• Simple USSD code *247# can be used without smartphone
• Wide network of agents covering urban and rural areas
• Utility bill payment and other bill payment functions
• Merchant collection solution promotes digitisation of micro and small businesses

tariff rate::
Individual users are charged 1.85% fee for transferring money between them (minimum Tk. 5) and withdrawal fees vary depending on the agent point. Notably, bKash and Alipay have established a partnership to facilitate cross-border trade between China and Bangladesh.

2. Nagad: a digital wallet with a government background

As a digital financial services platform launched by the Bangladesh Postal Department in association with the Ministry of Finance, Nagad is rapidly gaining market recognition with its official endorsement. The platform is particularly suitable for people receiving government subsidies and pensions.

Featured services include::

• KYC process streamlined to only require selfie verification
• "Nagad QR" contactless payment experience
• SIM card binding ensures account security

3. Rocket: the mobile payment pioneer of the banking union

Launched by Dutch-Bangla Bank, Rocket is the first mobile financial services platform in Bangladesh to be approved by the central bank. With its strong banking background, Rocket has an excellent reputation for reliability and security.

Core strengths

• instant transfer of funds: Support 24/7 real-time accounting
• No smartphone operation: The transaction can be completed through *322#.
• wide coverage: Over 100,000 agents nationwide.
• Enterprise Solutions: Provide B2B services such as payroll, vendor payments, etc.

Cost structure

The fee for transferring money between individual users is 1.8% (minimum 5 taka), and the withdrawal fee fluctuates between 1.5%-2% depending on the agent point. Special mention should be made of the fact that Rocket has partnered with Visa to launch a virtual card feature, which facilitates users to make international online payments.

4. Upay: an emerging ecosystem of super-apps

Upay, as a latecomer, has risen rapidly by integrating multiple scenarios. In addition to basic payment functions, it also provides entrances for travelling, takeaway and other life services, forming a complete digital ecosystem.

Differentiating features

✅ Integration platform::

• Built-in Daraz e-commerce shopping channel
• Pathao taxi service direct debit
• Foodpanda Takeaway Confidential Payment

✅ Innovative features::

• "Shake" your mobile phone to transfer money to nearby users
• Dynamic QR code prevents the risk of skimming
• Family Account Management Functions

⚠️ take note of: Currently, only smartphone use is supported, but the newly launched USSD version (*268#) is gradually expanding basic mobile phone user coverage.

5. Tap & Pay by DBBL: NFC Technology Pioneer

Another innovative product from Dutch-Bangla Bank that focuses on contactless payment experience. It is suitable for young urbanites who are looking for fast payments and high-frequency micro-transaction scenarios.

▶️ Operation Demonstration::

1. Activate the NFC function of your mobile phone
2. Select "Tap & Pay" at the POS.
   3. Hold the device <4cm from the terminal for 2 seconds.

📊 Table of side-by-side comparisons of the five tools (2023 latest data)

💡 Selection advice::

• 🏙 Younger group in metro area preferred Upay or Tap&Pay
• 🌾 Rural areas preferred bKash/Rocket's extensive proxy network
• 💼Business people recommend bKash/Rocket with cross-border capabilities