Absence of mobile financial services giants bKash and Nagad in Bangladesh’s long-awaited interoperable digital transaction platform, designed to link MFSs, banks, and payment service providers (PSPs), overshadowed its launching after finally it went live on Saturday, November 1.
The absence of industry giants raised questions about how effective the initial rollout will be.
The platform, launched under the supervision of the Bangladesh Bank, promises to revolutionise the digital finance ecosystem by enabling seamless fund transfers between different service providers and banks.
Once fully functional, it is expected to reduce transaction costs, expand financial inclusion, and strengthen the formal financial network.
However, two-thirds of the country’s mobile transactions still depend on bKash and Nagad, neither of which joined the launch.
Their absence has inevitably dimmed the excitement around what was billed as a breakthrough in financial connectivity.
Regulatory, technical barriers delay top players
According to the central bank, regulatory complications over Nagad’s operating licence have not yet been settled. bKash, meanwhile, said it needs more time to complete multi-layered cybersecurity and authentication systems before going live.
A senior bKash official told reporters that the company plans to join within three months, once its data protection and fraud-prevention protocols meet international standards.
Shamsuddin Haider Dalim, Head of Corporate Communications at bKash, said: “bKash has been actively involved in the initiative to introduce inter-bank transaction services in Bangladesh from the very beginning. We have been in regular contact with the relevant departments of the Bangladesh Bank to integrate with the latest version of this platform.”
“We believe this facility will make digital transactions more convenient and accessible for customers. bKash has already initiated partial transactions using the platform. However, considering customer interest and safety, some transactions are currently being closely monitored, as the security and efficiency of inter-bank transfers also depend on other stakeholders connected to the system,” he added.
At present, our priority is to ensure strong authentication and multi-layered security so that transactions are completed smoothly and any disputes can be resolved promptly, Dalim said. “After all necessary measures are in place, we expect customers will be able to use the service fully very soon.”
Bangladesh Bank’s Executive Director and Spokesperson Arif Hossain Khan confirmed the situation on Sunday.
“There are complications regarding Nagad’s licence, so they could not be added for now,” he said. “bKash has sought some more time to strengthen its security system.”
He added that a final decision regarding Nagad would be taken after the central bank governor’s return to the country.
Partial start, uncertain timeline
Although the framework was formalised through a October 13 circular, and several consultations were held with stakeholders, only a limited number of institutions have joined so far.
Bangladesh Bank said 42 banks and all licensed MFS providers are expected to be included in phases, but declined to specify how many are currently active on the platform.
Industry insiders suggest that full-scale interoperability may take several months to materialise, as integrating dominant players like bKash and Nagad is crucial to achieving meaningful reach and efficiency.
Missed momentum or cautious progress?
Economists and digital finance experts say the platform marks a significant policy step toward financial integration, but its incomplete rollout reflects deeper challenges in aligning regulatory frameworks, data protection standards, and technical readiness across operators.
“Without bKash and Nagad, the system’s real benefits won’t be felt immediately,” one analyst said. “But once they come on board, Bangladesh could see a new phase of cashless economy growth.”
For now, the interoperability dream remains a work in progress – promising a more connected financial future, but still waiting for its biggest players to join the game.