Person-to-person payments coming to Bangla QR; BB orders all apps to be ready by 31 Oct

Bangladesh Bank has moved to introduce person-to-person (P2P) transactions through Bangla QR as part of efforts to reduce cash use and expand digital payments.

Banks, mobile financial service (MFS) providers, payment service providers (PSPs) and payment system operators (PSOs) have been instructed to incorporate the necessary features into their apps by 31 October.

In a letter issued on 6 August, the central bank directed the institutions to enable users to generate dedicated QR codes for P2P transactions and scan or upload P2P QR codes sent by others.

The institutions have been asked to remain ready to launch the service from 1 November 2026.

Bangladesh Bank Payment Systems Department Director Sharafat Ullah Khan told TBS, "We will take comprehensive steps to turn Bangla QR into a single, universal QR code for transactions. The charge on merchant payments has already been reduced to zero, which will take effect from 1 October 2026."

"Currently, transactions worth Tk50-60 crore are being made through Bangla QR every day. We expect the volume to increase several times from the beginning of October. We will also introduce more services in line with market demand," he said.

Bangladesh Bank spokesperson Arif Hossain Khan told TBS, "The introduction of person-to-person transactions through Bangla QR would significantly increase digital transactions."

"At present, when someone uses Send Money, entering even one wrong digit can result in the money being transferred to the wrong account. With a unified QR code, that risk will no longer remain," he said.

"A customer will be able to make transactions through their QR code using either a bank or an MFS account without any complications. There will be no need to enter the recipient's name or other information again," Arif added.

He said discussions had also been held with various government agencies on whether Bangla QR could be used for payments in sectors such as education and healthcare, as well as for tax collection by the National Board of Revenue (NBR).
"Necessary steps will be taken to introduce such services," he said.

How person-to-person payments will work

At present, Bangla QR is mainly used for merchant payments. For example, after buying a product from a shop, a customer can scan the merchant's Bangla QR code using a bank or MFS app and make the payment. Such transactions are conducted on a customer-to-merchant (C2M) basis.

Under the new system, the same QR technology will also be used for person-to-person transactions.

For instance, if a father in Dhaka wants to send money to his child, the child will be able to generate a P2P Bangla QR code from their app and send it to the father. The father can then scan the QR code and transfer the required amount.

This will reduce the need to manually enter bank account numbers, routing numbers or other details.

There will be no separate charging mechanism for P2P transactions. Bank-to-bank transfers will be subject to the existing IBFT charges, while transactions between banks, MFS providers and PSPs will be charged at the rates already prescribed for inter-institution transactions.

Merchant payment charges scrapped, incentives introduced

Bangladesh Bank has reduced the Interchange Reimbursement Fee (IRF), or interbank charge, to zero for all Bangla QR-based merchant transactions in a bid to accelerate digital payments.

As a result, institutions will not be allowed to impose any fee or service charge under the IRF on either the card-issuing institution or the institution receiving payments on behalf of merchants.

The central bank has also created a Tk100 crore fund to encourage small merchants to adopt Bangla QR.

Bangladesh Bank Governor Md Mostaqur Rahman said the size of the fund would be increased if necessary.

He made the remarks while addressing a workshop on Bangla QR transactions at the Nilgiri Hall of Radisson Blu hotel in Chattogram on 8 August.

According to the governor, limited smartphone use remains one of the major barriers to expanding digital transactions in Bangladesh.

Around six crore people in the country still use feature phones, he said, adding that initiatives were being taken to make low-cost Android smartphones available to bring them into the digital payment ecosystem.

"Feature phone users are willing to spend around Tk3,000 for a good phone. On the other hand, manufacturers have said it is not possible to provide an Android phone for less than Tk8,000. Bridging this gap of around Tk5,000 may require an investment of nearly Tk30,000 crore," he said.

The governor said work was underway to find ways to arrange the investment, while initiatives were also being explored to allow people to buy mobile phones in instalments.

If mobile operators can facilitate the purchase of Android phones through instalment plans, a large number of feature-phone users could be brought under digital and financial inclusion, he added.

Bangla QR transactions jump 8.6 times in six months

Bangladesh Bank data show that the use of Bangla QR has grown rapidly.

In January 2026, a total of 7,23,378 transactions were made through Bangla QR, involving Tk212.05 crore.

By July, the number of transactions had risen to 62,54,938, while their total value reached Tk1,475.95 crore.

This means the number of Bangla QR transactions increased around 8.6 times in just six months, while the value of transactions rose nearly sevenfold.

Merchant numbers rise 79% in three months

The number of merchants accepting Bangla QR has also increased rapidly, according to central bank data.

There were 13,52,712 Bangla QR merchants in May 2026. The number increased to 16,85,188 in June and reached 24,25,133 in July.

The number of merchants therefore increased by around 79% in three months, while growing by nearly 93% over the past 10 months.

Cash management costs Tk20,000 crore a year

At the workshop, Bangladesh Bank Payment Systems Department-1 Additional Director Md Parvez Anjam Munir said Bangladesh spends around Tk20,000 crore annually on managing cash.

The expenditure covers the entire lifecycle of banknotes — from printing and production at the security printing press to distribution, circulation, collection of damaged and worn-out notes, and their eventual destruction.

"We print money, it reaches people, people use it, and the notes become dirty, damaged and torn. They then have to be collected again and destroyed. This entire process costs around Tk20,000 crore every year. We are a poor country. Spending so much money simply on cash notes is an extreme luxury and waste," he said.

He said the expenditure could be reduced significantly by cutting dependence on cash and expanding digital payments.

As digital transactions are comparatively less costly, Bangladesh needs to move away from a cash-dependent economy towards a more digital payment system, he added.