How are digital payments being used in rural Bangladesh?

The promotion of digital payments in rural Bangladesh requires a phased, multi-layered strategy that takes into account local infrastructure, economic conditions and user habits. The following are key measures and specific recommendations:

1. Addressing infrastructure bottlenecks

  • Mobile network coverage: Expanding 4G/rural network coverage in cooperation with the government and telecom companies, with priority given to ensuring stable connectivity in core areas such as markets and village councils.
  • power supply:: Promote solar charging stations (e.g. bKash has been deployed in some villages) to ensure continuous operation of electronic devices.

2. Streamlining user operations

  • USSD/SMS payments: A *#247# shortcut code service for feature phone users without the need for a smartphone (similar to bKash's existing solution).
  • oral guide: Develop voice prompting systems in local languages (e.g., Bengali, dialects) to help illiterate groups complete transactions.
  • Agent Point Network: Train small shopkeepers in the village to become agent points to assist villagers in completing the exchange of cash and digital currency (refer to the Kenyan M-Pesa model).

3. Localised scenario design

  • Agro-ecological chain integration::
    • Grain buyers pay farmers through digital wallets (reducing the risk of cash theft).
    • Embedded agricultural purchasing function (seed/fertiliser can be ordered directly with the app and offset against subsidy).
  • Religious Scene Adaptation: Opening of a special area for Islamic finance rules such as "Holiday Donations" and "Hajj Expense Instalments".

4. Confidence-building and financial education

  • Endorsement by community leaders: Co-promote with local mosques, schools or village chiefs, using networks of acquaintances to reduce doubts about use.
  • Anti-fraud awareness: Educate villagers to identify phishing links and bogus agents through popular forms such as mobile radio vans and marketplace theatre.
  • Zero Handling Fee Pilot: Handling fee waiver for new users for the first month of transfer/payment (cost may be subsidised by the government or platform).

5. Policy and ecological synergies

  • government linkage: Direct access to digital wallets for agricultural subsidies, pension disbursements (e.g., India's PMJDY programme) and mandatory activation of accounts for use.
  • cross-platform interoperability: Promote interconnection of mainstream wallets such as bKash and Nagad to avoid market fragmentation.
  • Cash refund mechanism: Allow users to redeem cash at any time at the agent's point of sale, solving the worry of "in case you can't use it".