BRAC Bank is expanding its Bangla QR network across retail, SME and corporate segments as it seeks to become the leading bank in Bangladesh’s unified digital payment ecosystem, said Md Mahiul Islam, deputy managing director and head of retail banking at BRAC Bank PLC.
In an interview with TIMES of Bangladesh, Islam said the bank is pursuing a coordinated strategy to increase merchant adoption, strengthen its Astha mobile banking platform and provide incentives to both merchants and customers to accelerate Bangla QR usage nationwide.
“With these initiatives, BRAC Bank is preparing to become the leading bank in Bangla QR transactions in Bangladesh,” he said.
According to him, BRAC Bank is rapidly expanding its own Bangla QR footprint across retail, SME and corporate segments through a coordinated, bank-wide strategy, while its subsidiary bKash has built the country’s largest Bangla QR merchant network, Islam said.
The bank has made Bangla QR onboarding mandatory for new SME account holders and partnered with leading pharmaceutical companies, enabling pharmacies purchasing medicines from those companies to make payments through Bangla QR.
Alongside network expansion, BRAC Bank is offering attractive incentives and promotional benefits for both merchants and customers to encourage adoption. More than 10,000 employees across its branches, sub-branches, SME unit offices and Agent Banking network are actively promoting Bangla QR adoption throughout the country.
The bank is also strengthening Astha, its mobile banking application, which facilitates more than Tk25,000 crore in monthly transactions. QR payments have long been available through the platform, and BRAC Bank continues to optimise Astha to deliver a superior Bangla QR experience.
Why Bangla QR matters for merchants
Islam said Bangla QR can transform small merchant operations by improving security, reducing dependence on cash and creating access to formal credit.
Digital payments eliminate cash-handling risks, including counterfeit notes, damaged currency and shortages of small change. They also reduce the need to store or transport large volumes of physical cash, securing business revenue.
More importantly, digital transaction records create a verified financial footprint that enables banks to accurately assess business performance and creditworthiness, helping previously underserved entrepreneurs gain access to formal financing and SME loans.
Adoption challenges
Despite the expansion efforts, Islam said changing merchant behaviour remains one of the biggest challenges to popularising Bangla QR.
A considerable number of small retailers still do not maintain bank or mobile financial service (MFS) accounts. Bringing them into the formal financial system remains a prerequisite for widespread adoption of digital payments.
Transaction costs are another challenge, as some merchants remain hesitant to accept digital payments because doing so often incurs fees. Addressing this issue requires a collaborative approach involving government incentives, policy support and industry initiatives, he said.
From BRAC Bank’s side, the bank is offering incentives to merchants accepting Bangla QR payments and has enabled instant settlement, allowing merchants to receive funds directly into their bank accounts immediately after each transaction.
To encourage customer usage, BRAC Bank offers reward points on Bangla QR payments made through its debit and credit cards. These rewards can be redeemed for various benefits, including annual fee waivers. Astha users can also conveniently make Bangla QR payments through the app.
Beyond banking, wider smartphone penetration and reliable internet connectivity, particularly in rural and underserved areas, will remain critical for nationwide adoption of digital payments, Islam said.
Security and trust
Islam said the security of a bank today depends significantly on the resilience of its digital infrastructure as customer account information, transaction records and personal data are increasingly stored digitally.
Safeguarding customer data and digital infrastructure is a critical operational priority for BRAC Bank, he said.
The bank secures its digital channels through robust data encryption, data loss prevention (DLP) mechanisms and multi-factor authentication aligned with international best practices. Real-time threat detection is managed through an advanced Security Operations Centre (SOC) using SIEM and SOAR platforms while ensuring compliance with Bangladesh Bank regulatory guidelines.
To counter emerging fraud risks, the bank combines technical resilience with human defence through customer awareness campaigns on safe digital banking practices.
Its security strategy includes a dedicated Cyber Incident Response Team backed by Business Continuity Management and Disaster Recovery capabilities. Moving forward, BRAC Bank is expanding its defences through AI and machine learning analytics, threat intelligence sharing and rigorous vulnerability assessments to strengthen long-term trust in its QR ecosystem.
Lower costs key to faster adoption
Islam said interoperability is Bangla QR’s biggest advantage because customers no longer need to search for a specific bank’s or payment service provider’s QR code while shopping.
A single Bangla QR code can be scanned by any participating bank or MFS application, allowing customers to complete payments instantly.
However, he advised customers to verify the merchant name and transaction amount displayed on the screen before entering their PIN or one-time password. Customers should never share their PIN, password or OTP with anyone.
Another advantage of digital payments is that every transaction creates a secure financial record. These records help customers track and manage monthly expenses while strengthening their financial profile and improving eligibility for future banking services, including access to credit.
Looking ahead, Islam said reducing transaction costs will be essential for Bangla QR to become a mainstream payment method.
Bangladesh Bank currently sets the Merchant Discount Rate (MDR) for Bangla QR transactions at 1 per cent for general merchants. However, if Bangladesh wants widespread digital payment adoption, the service should be delivered at a significantly lower cost, he said.
He pointed to India and Thailand, where QR payments were treated as national digital infrastructure during early adoption stages. Processing costs were not eliminated; rather, they were shared among governments, central banks, payment networks and participating financial institutions instead of being borne mainly by merchants.
Those countries recognised that wider digital payment adoption could generate long-term economic benefits by promoting financial inclusion, improving tax transparency and bringing informal economic activity into the formal financial system.
Bangladesh now needs a clear national framework defining how the costs of Bangla QR infrastructure and the MDR should be shared among the government, Bangladesh Bank, commercial banks, payment networks and merchants, Islam said.
“The speed at which Bangla QR becomes a mainstream payment method will ultimately depend on how effectively this policy question is addressed. A collaborative approach will be essential to building a truly inclusive and sustainable digital payments ecosystem.”
