Exploring the Terrain of M-Payments in Bangladesh: Prospects, Challenges and the Future Targeted Towards Economical Gradualism

Abstract

Mobile Financial Services (MFS) has changed the payment landscape in Bangladesh, bringing financial inclusion along with convenience. This study specifically explores adoption, usage patterns, scope, benefits, challenges and expectations for the future of mobile payments, focusing on bKash, Rocket, Nagad and uPay. A quantitative questionnaire-based survey was conducted with 122 participants from Sylhet City. Results reflect strong adoption (91.8%), led overwhelmingly by bKash (90.2%). Most users use mobile payments to send money, buy online and pay bills, with high transaction frequency and monthly volume. It offers key benefits such as 24/7 accessibility, time savings, convenience, and SME support, but also challenges such as scam vulnerability, fraud risk, and agent liquidity shortages. Non-users overwhelmingly use cash due to trust and complexity concerns, though low fees as well as improved security are mentioned most frequently as appealing the most. The results point to the importance of regulatory assistance, security enhancements, and financial education for developing sustainable and inclusive growth. The findings of this study provide valuable implications for policymakers, financial institutions and fintech companies to promote mobile payment adoption in Bangladesh and support the country’s move towards a cash-light society.