Bangladesh Bank removed the minimum 1 per cent merchant discount rate (MDR) on Bangla QR payments from the beginning of October, allowing banks and mobile financial service (MFS) providers to offer the service free or at a lower charge as digital payment volumes rise sharply.
The central bank will also set the interchange reimbursement fee (IRF) for issuing institutions at zero from the same date, reducing the cost of accepting Bangla QR payments for merchants.
The move comes as daily Bangla QR transaction value has surged nearly fivefold in three months to Tk143.54 crore from more than Tk28 crore in June. Daily transaction volume has also risen 3.5 times to around 3.5 lakh from about one lakh.
Bangladesh Bank Executive Director and Spokesperson Arief Hossain Khan disclosed the figures at a press conference at the central bank headquarters on Wednesday.
The growth followed Bangladesh Bank’s mandatory shift to Bangla QR from 1 July, when banks and financial service providers replaced proprietary QR systems with the country’s single interoperable QR payment standard.
Bangla QR is now available at nearly 39 lakh merchant points nationwide, allowing bank and MFS customers to make digital payments through a common platform.
The MDR is the fee merchants pay acquiring institutions for processing payments. Removing the minimum rate does not automatically make the service free but gives providers flexibility to offer Bangla QR payments at no charge or at a nominal fee.
From 1 October, Bangla QR payments will also be settled instantly into merchants’ accounts.
The central bank will also provide incentives for small-value Bangla QR payments of up to Tk2,000 processed through the National Payment Switch Bangladesh (NPSB).
Acquiring institutions will receive 0.10 per cent and issuing institutions 0.20 per cent of each eligible transaction as incentives.
Bangladesh Bank said the measures are aimed at building a secure and inclusive digital payment ecosystem.
A working committee with representatives from banks and MFS providers, along with a steering committee led by the Bangladesh Bank governor and representatives from government agencies, is overseeing expansion strategies.
From 1 November, Bangla QR will also support person-to-person (P2P) transfers, allowing customers to send money across participating institutions by scanning another customer’s QR code or uploading a QR image through mobile applications.
To improve customer confidence, Bangladesh Bank has introduced faster refunds for failed Bangla QR transactions and issued dispute-resolution guidelines.
Under the guidelines, refunds will be processed immediately or within 30 minutes where instant reversal is not possible.
Customers can raise Bangla QR-related complaints through Bangladesh Bank’s hotline at 16236.
