Incentives for both customers, shopkeepers can boost digital transactions: BASIS
It says reluctance of small shopkeepers to accept digital payments a key challenge for cashless transactions
Providing incentives to both customers and small shopkeepers while imposing additional charges on cash transactions can enhance cashless payments in the country, according to the Bangladesh Association of Software and Information Services (BASIS).
The association identifies lack of smartphone and app usage, and reluctance of small shopkeepers to accept digital payments as the key challenges that hinder cashless transactions.
At a workshop titled "Way Forward to Increase Cashless Payment for a Smart Bangladesh" on Saturday, it also mentioned complexity of using bank apps, high transaction costs, technical complexity of Bangla QR code, a lack of awareness among customers as the other challenges.
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To overcome the challenges, it is important to ensure that digital money can be easily withdrawn as cash. The Bangladesh Bank needs to ensure real-time payment and interoperability between different payment systems, BASIS recommends.
"It needs to be ensured that small shopkeepers can pay suppliers or wholesalers cashlessly using the digital payments they receive from customers," it said in a media release.
To popularise cashless payment modes, banks and fintech companies need to come forward to create public awareness, it added.
Additionally, banks need to work not only in big cities but also at the upazila and village levels.
At the same time, each bank needs to introduce a mobile app for its customers to popularise Bangla QR payment.
The existing apps should be made much simpler and user-friendly to increase their use.
Speaking at the workshop as the chief guest, Md Mezbaul Haque, executive director of Bangladesh Bank, requested banks and fintech companies to help expand cashless society as envisaged by the government.
He assured that the central bank will provide all kinds of policy support to this end.
Md Motasem Billah, director of Payment Systems Department of Bangladesh Bank, was the guest of honour of the event.
Shah Ziaul Hoque, the department's additional director, presented the keynote paper.
Russell T Ahmed, BASIS president, also spoke on the occasion, presided over by AKM Fahim Mashroor, chairman, BASIS Standing Committee on Fintech and Digital Payment.
Syed Mohammad Kamal, director of BASIS and country manager of Mastercard, moderated it.
