Nagad transforms country's fintech landscape
As digital payments become increasingly common in Bangladesh, Nagad's record monthly transaction volume reflects the sector's continued expansion
Starting from scratch just over seven years ago, mobile financial service (MFS) provider Nagad has reached a major milestone by facilitating transactions worth Tk44,639 crore in a single month (May 2026).
From person-to-person transfers and merchant payments to utility bill settlements, the company has become a preferred digital payment platform for millions of Bangladeshis, helping customers save both time and money through secure, convenient transactions.
Its rapid growth has also attracted international attention. Veon, the parent company of Banglalink, recently wrote to the government expressing interest in partnering with Nagad, recognising it as one of the country's fastest-growing mobile financial service brands.
According to Nagad's top officials, growing from a startup into one of Bangladesh's leading MFS providers within a few years is a remarkable achievement. More importantly, they say, the company has earned the trust of millions through technology-driven innovation.
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When Nagad launched in 2019, Bangladesh's digital financial services sector had limited competition, relatively high transaction costs and complicated account-opening procedures that excluded many low-income and rural citizens. Opening an account typically required physical documents and in-person verification.
Nagad challenged this model by positioning itself as an affordable, mass-market alternative. It introduced free person-to-person transfers, reduced cash-out charges and pioneered electronic Know Your Customer (e-KYC) registration, allowing users to open accounts digitally from home. The innovation later became particularly valuable during the Covid-19 pandemic, when remote access to financial services became essential.
By relying on advanced technology, Nagad reduced operational costs and passed the benefits on to customers through competitive pricing. The strategy helped it become one of Bangladesh's most widely used MFS providers. A 2024 survey by the Bangladesh Brand Forum ranked Nagad second among all brands in the country in overall consumer preference.
"Earning customer trust is a critical factor for any financial institution, not just Nagad," said Md. Motasem Billah, the Bangladesh Bank-appointed administrator for Nagad. "I believe Nagad has been remarkably successful in this regard."
That trust is reflected in customer behaviour. According to company data, users collectively maintain between Tk4,000 crore and Tk5,000 crore in their Nagad accounts at any given time.
The simplified account-opening process also made Nagad an important channel for distributing government safety net allowances, Eid gifts and stipends. Although such payments are now available through all MFS operators, more than 3 crore beneficiaries continue to choose Nagad for its secure and convenient services.
To date, the company has disbursed over Tk43,000 crore in government assistance, helping improve transparency and efficiency in benefit distribution.
Officials say Nagad has significantly improved the quality of life for ordinary citizens by offering some of the country's lowest transaction fees for cash-outs, everyday payments and inward remittances.
The company also operates a nationwide network of more than 300,000 agents, providing easy access to cash-in and cash-out services across Bangladesh. Apart from one competitor, no other financial institution has a comparable agent network.
"The countrywide network is one of Nagad's core strengths," said Billah, adding that financial services must remain within easy reach of customers. He also questioned whether any new entrant could replicate such an extensive infrastructure.
Beyond customer convenience, Nagad believes expanding digital payments contributes to a more transparent, cashless economy while increasing government revenue. So far, the company has contributed Tk1,100 crore to the national exchequer and shared Tk28.27 crore in earnings with the Postal Department.
Its efforts have earned international recognition, including the prestigious WITSA Global Excellence Award, as well as honours from the MetLife Foundation, IFC and Mastercard for advancing financial inclusion.
Most recently, Nagad introduced interoperable transfers between banks and all MFS providers, while enabling payments through one million Bangla QR codes across the country.
Billah believes these initiatives will make digital payments even more seamless and represent another major step towards building a truly cashless Bangladesh.
