Data Report on the Growth of Digital Payment Users in Bangladesh

Below is a comprehensive analytical report on the growth of digital payment users in Bangladesh, covering key data, drivers and future trends:

1. Market overview

  • total population: ~170 million (2023), internet penetration ~401 TP3T, smartphone penetration 351 TP3T.
  • Digital payments user base: 40 million+ by 2023 (251 TP3T of adult population), growing at a CAGR of 301 TP3T-351 TP3T (2018-2023).
  • Main platforms: bKash (market share 801 TP3T), Nagad, Rocket (Dutch-Bangla Bank), Upay, and others.

2. Core growth data

vintages Number of digital payment users (millions) annual growth rate Transaction value (billions of United States dollars)
2018 ~12 – ~7
2020 ~25 >100%* ~14
2022 ~35 ~40% ~28
2023 (e)

3. Key data and trends for 2023

vintages Number of digital payment users (millions) annual growth rate Transaction value (billions of United States dollars)
2023 (e) ~40 ~15% ~35
  • Slower growth but continued expansion: Growth rate down from 2020-2022 due to economic inflation and regulatory tightening, but user penetration still increasing.
  • bKash dominance is solid: Over 35 million users and 12 million transactions per day; Nagad is catching up fast with government partnerships (over 40 million users *including some overlap).

4. Core drivers

(1) Policy support and infrastructure improvement

  • "Digital Bangladesh" strategy: The government aims to increase the contribution of the digital economy to 201 TP3T of GDP by 2025 (currently around 1.21 TP3T).
  • MFS licence issuance: RBI approves 18 institutions to operate mobile financial services (MFS) to promote competition.

(2) COVID-19 catalytic behavioural shifts

  • Demand for contactless payments surges: Doubling the number of new users by 2020 and accelerating the digitisation of micro and small merchants.

(3) Promotion of inclusive financeIncreased rural coverage:: Over 500,000 bKash/Nagad agent points covering more than 901 TP3T townships.

5. Challenges and bottlenecks

  1. A culture of cash dependency: Cash still accounts for 70%+ of daily transactions, especially in rural areas.
  2. regulatory pressure:: Tightened anti-money laundering (AML) scrutiny has led to a lengthening of the KYC process for new users.
    3.Infrastructure constraints: Poor network stability & smartphone price sensitivity.

6.Future prospects (2024 - 2030)

Low forecast (CAGR10%) Medium forecast (CAGR20%) High forecast (CAGR30%)
2030 Household size (millions) 85 120 150
Penetration rate (% adult population) 45%-60%-75%

–Key growth points:
-Cross-border payment integration (RuPay/Alipay co-operation)
-The rise of BNPL (buy now pay later) products
-AI risk control to reduce fraud rates (<currently 2%)

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