Bangladesh leads South Asia in mobile money growth: GSMA

Illustration: TBS

Bangladesh continues to spearhead mobile money adoption in South Asia, with a significant impact on financial inclusion and economic growth, according to a report of Global System for Mobile Communications Association (GSMA) published during the first half of 2024.

The report titled "The State of the Industry Report on Mobile Money 2024" states the use of mobile money is increasing rapidly all over the world with approximately $2.7 million (nearly Tk33 crore) was transacted every minute globally via mobile phones in 2023. 

GSMA is a London-based non-profit organisation representing mobile network operators worldwide.

The report states that mobile money is having a significant positive impact on people's lives and livelihoods as the growth of mobile money directly contributes to economic growth. Analysing data from 2013 to 2022, GSMA stated that a 10 percentage point increase in the use of mobile money can increase a country's Gross Domestic Product (GDP) by 0.4% to 1.0%.

This global trend is reflected in Bangladesh as well. Here, mobile financial services (MFS) are making the largest contribution to financial inclusion. MFSs are not just limited to providing services like cash-in, cash-out, or sending money anymore. The MFS platforms are also facilitating payments of all types, paying utility bills, donations, stipend disbursement, and salary disbursement etc. Even products like loans and savings are also available in bKash's platform. Besides, MFS like bKash has made it easier than ever for expatriate Bangladeshis to send remittances with just few clicks.

According to the GSMA report, in 2023, the number of registered MFS accounts worldwide was 1.75 billion, a 12% increase from the previous year. Transactions through these accounts in that year amounted to US$ 1.4 trillion, a 14% increase compared to 2022. From 2013 to 2022, mobile money contributed $600 billion to global GDP. For all these reasons, mobile money is now the most influential medium of financial inclusion globally. In 2023, the number of registered agents worldwide was 18.6 million, a 22% increase from the previous year.

In 2023, international remittance growth was the highest among mobile money services. Global remittances via mobile phones increased from $22 billion in 2022 to $29 billion in 2023, seeing a 33% increase. Merchant payments increased by 14% to $74 billion. The average transaction per active account was $169, compared to $163 in 2022. Both bank-to-mobile and mobile-to-bank transactions have also increased. In 2023, the transaction amount stood at $210 billion in that area, registering a 50% increase from the previous year and a 250% increase compared to 2020.

State of MF Growth in Bangladesh

GSMA conducted a consumer survey in eight countries including Bangladesh in January 2023 where it was stated that Bangladesh is one of the countries where awareness of mobile money has increased significantly in 2023. In Bangladesh, 81% of men and 72% of women are aware of this, which is higher than in many countries. The survey also showed that 49% of adult men who use mobile phones in Bangladesh have mobile money accounts. For women, this rate is 21%. In this regard, Bangladesh is ahead of India, Pakistan, and Indonesia. Only Kenya and Senegal are ahead of Bangladesh.

According to the GSMA report, the number of mobile money accounts in South Asia in 2023 was 400 million. Meanwhile, according to Bangladesh Bank, there were 224.5 million registered MFS customers in the country in 2023. That means 56.12% of the total mobile money accounts in South Asia are in Bangladesh, and 12.82% of global mobile money accounts were opened in Bangladesh. In South Asia, MFS customers increased by 11% in one year, while in Bangladesh, it increased by 18%.

Bangladesh's largest MFS provider bKash has also been contributing to the global growth of mobile money sector. In some parameters, bKash's growth is somewhat better than the global average. In 2023, transactions through bKash increased by 24% compared to the year before.

At the end of 2023, bKash's customer base stood at 74.05 million, a 9% increase from the previous year. In 2020, 2021 and 2022, the number of customers increased by 32%, 14% and 13% respectively. Same year, bKash's agent count stood at 364,165, a 13% increase from the previous year. In 2022, the number of agents increased by 26%, and even earlier in 2021, there was a record 253% growth in the number of agents. In 2023, bKash's merchant count was 793,642, a 176% increase from 2022. There was significant growth in the number of merchants during the previous years as well.

In 2023, remittances sent to the country through bKash increased by almost 50% compared to the previous year. Notably, according to recent data, remittances coming through bKash in 2024 have increased by 65% compared to 2023. bKash has created a strong ecosystem in collaboration with more than hundred international money transfer organisations (MTOs) and the country's top commercial banks so that expatriate Bangladeshis from about 140 countries can send remittances directly to the bKash accounts of their dearest ones without any stress.