Digital financial transactions in Bangladesh slowed in February 2026 as mobile financial services (MFS), electronic fund transfers (EFT), and credit and debit card transactions all posted month-on-month declines, while only internet banking recorded growth.
According to Bangladesh Bank, MFS, one of the country’s most widely used digital payment platforms, recorded the sharpest fall among all payment channels.
Transactions through MFS dropped by Tk24,873 crore, or 14.38 per cent, to Tk1,48,046 crore in February compared to January.
Industry insiders said the decline was mainly due to disruptions in mobile transactions during the election period.
MFS transactions had been rising steadily every month since the beginning of FY26 before registering the February decline.
Despite the monthly fall, MFS transactions during the July–February period still increased by Tk45,946 crore, or 3.79 per cent, year on year.
Dhaka University Finance Professor Mahmood Osman Imam said digital transactions have strong potential to improve financial inclusion.
He said Bangladesh follows a bank-led model rather than a telecom-led one, but interoperability among service providers remains limited, reducing the broader impact of digital finance.
“There is potential for financial inclusion, but there are also major cyber risks and operational barriers,” he said.
He said partnerships and memorandums of understanding with banks, along with nano-lending services, are helping expand financial inclusion, particularly for micro-enterprises.
According to him, nano-lending has emerged as a transformative business service by improving access to small-scale financing for small entrepreneurs.
Electronic fund transfer transactions dropped by Tk6,919 crore, or 9.10 per cent, to Tk69,146 crore in February compared to January.
However, during the July–February period of FY26, EFT transactions increased by Tk13,570 crore, or 2.34 per cent, compared to the same period of the previous fiscal year.
Credit card transactions also declined sharply in February, falling by Tk698 crore, or 15.89 per cent, to Tk3,697 crore from the previous month.
Despite the monthly decline, credit card transactions during July–February rose by Tk7,114 crore, or 29.08 per cent year on year.
In February, credit card transactions through ATM and CRM increased by 51.52 per cent, through point-of-sale by 22.30 per cent, and through e-commerce by 1.75 per cent compared to the same month last year.
Debit card transactions decreased by Tk2,467 crore, or 5.35 per cent, to Tk43,624 crore in February from January.
For the July–February period, debit card transactions rose by Tk48,801 crore, or 16.38 per cent, from the same period a year earlier.
In February, debit card transactions through ATM and CRM increased by 7.23 per cent and through point-of-sale by 9.97 per cent, while e-commerce transactions using debit cards declined by 13.94 per cent year on year.
Unlike other payment channels, internet banking posted monthly growth.
Transactions through internet banking increased by Tk4,168 crore, or 3.06 per cent, to Tk1,40,516 crore in February from January.
During July–February, internet banking transactions surged by Tk2,43,368 crore, or 33.96 per cent, compared to the corresponding period of the previous year.
Speaking on the country’s transition toward a cashless economy, Mahmood said achieving a fully cashless society would be difficult, although Bangladesh is gradually moving in that direction.
“Many payments can now be made online, but cash will continue to remain necessary for numerous transactions,” he said.
He added that public trust in the banking sector remains weak and must be strengthened to accelerate digital adoption.
In the retail sector, he observed that although customers may have digital payment options, many retailers still prefer cash transactions, slowing the shift toward a cashless economy.
