BRAC Bank set to lead the banking industry in Bangla QR transactions

Bangla QR has the potential to bring millions of small merchants into the formal financial system, but achieving nationwide adoption will require affordable transaction costs, stronger digital infrastructure, robust cybersecurity and coordinated policy support 

Bangladesh is at an important stage in its digital payments journey. While cash continues to dominate everyday transactions, platforms such as Bangla QR have the potential to fundamentally change how businesses operate, particularly for small merchants who have long remained outside the formal financial system.

The most immediate benefit of Bangla QR is that it makes business transactions safer and more efficient. Small retailers no longer have to deal with the risks associated with handling large volumes of cash, whether it is counterfeit notes, damaged currency or the constant challenge of keeping enough change. Digital payments also reduce the need to transport or store cash, giving merchants greater security and convenience.

More importantly, every digital transaction leaves behind a verified financial record. For many small businesses that have traditionally operated entirely in cash, this creates an opportunity that extends well beyond payments. A documented transaction history allows banks to better assess a business's financial performance and creditworthiness, opening the door to formal financing and SME loans that were previously difficult to access.

At BRAC Bank, we have been working to accelerate this transition by investing heavily in digital banking infrastructure. A reliable, secure and user-friendly payment platform is essential for widespread QR adoption, which is why we continue to strengthen Astha, our mobile banking application.

Today, Astha facilitates more than Tk25,000 crore in transactions every month. QR payments have been available through the platform for some time, and we are continuously enhancing the app to provide an even smoother Bangla QR experience.

Our efforts extend well beyond technology. Through our subsidiary bKash, we are connected to the country's largest Bangla QR merchant network, while BRAC Bank itself is rapidly expanding QR acceptance across retail, SME and corporate customers.

We have made Bangla QR onboarding mandatory for new SME account holders, ensuring that more businesses enter the digital payments ecosystem from the very beginning. We have also partnered with leading pharmaceutical companies so that pharmacies purchasing medicines through these companies can conveniently make payments using Bangla QR. Alongside expanding the network, we continue to introduce incentives and promotional campaigns for both merchants and customers to encourage greater adoption.

Despite this progress, several challenges remain.

Perhaps the biggest obstacle is changing merchant behaviour. Many small retailers still do not maintain bank accounts or mobile financial service accounts, making it difficult for them to participate in digital payments. Expanding financial inclusion remains the first step towards achieving widespread Bangla QR adoption.

Transaction costs are another concern. Some merchants remain reluctant because accepting digital payments often involves fees. Addressing this issue will require collaboration between financial institutions, regulators and policymakers. Government incentives, supportive policies and industry-wide initiatives can significantly accelerate adoption.

From BRAC Bank's perspective, we are doing our part by offering incentives to merchants accepting Bangla QR payments and providing instant settlement so that funds are deposited directly into merchants' bank accounts immediately after every transaction.

Customers are also being encouraged to embrace digital payments. Reward points earned through Bangla QR transactions made using BRAC Bank debit and credit cards can be redeemed for a range of benefits, including annual fee waivers. Astha users can make Bangla QR payments seamlessly through the app.

Our people are equally important to this effort. More than 10,000 colleagues across our branches, sub-branches, SME unit offices and Agent Banking network are actively promoting Bangla QR across Bangladesh, helping merchants understand both the technology and its long-term benefits.

Beyond the banking sector, broader digital infrastructure will play a decisive role. Greater smartphone penetration and reliable internet connectivity, particularly in rural and underserved areas, will be essential if digital payments are to become truly universal.

As digital transactions grow, security naturally becomes a key concern.

Today, the resilience of a bank depends heavily on the strength of its digital infrastructure. Customer information, transaction records and personal data are all stored digitally, making cybersecurity one of the banking sector's highest priorities.

At BRAC Bank, protecting customer data and digital infrastructure is embedded into our operations. Our digital channels are secured through robust encryption, data loss prevention mechanisms and multi-factor authentication, aligned with international best practices. Our Security Operations Centre continuously monitors threats using advanced SIEM and SOAR platforms while ensuring full compliance with Bangladesh Bank's cybersecurity guidelines.

Technology alone, however, is not enough. Customer awareness remains one of the strongest defences against fraud. We regularly educate customers on safe digital banking practices while maintaining a dedicated Cyber Incident Response Team supported by comprehensive business continuity and disaster recovery capabilities. As cyber threats continue to evolve, we are further strengthening our systems by incorporating artificial intelligence, machine learning, threat intelligence sharing and continuous vulnerability assessments.

For customers, Bangla QR offers an important convenience through interoperability. Instead of searching for different QR codes for different banks or payment service providers, a single Bangla QR code can be scanned using any participating bank or mobile financial service application, making payments faster and simpler.

Users should nevertheless remain vigilant. Before authorising any payment, customers should always verify the merchant's name and the transaction amount displayed on the screen. Under no circumstances should PINs, passwords or one-time passwords (OTPs) be shared with anyone.

Digital payments also create a valuable financial record for customers themselves. Besides helping users manage and monitor their spending, transaction histories can strengthen an individual's financial profile and improve access to future banking products and credit facilities.

Looking ahead, policy support will be crucial in determining how quickly Bangla QR achieves nationwide adoption.

Bangladesh Bank currently caps the Merchant Discount Rate (MDR) for Bangla QR transactions at 1%. While this provides a framework for digital payments, reducing the overall cost of QR transactions should become a national priority if Bangladesh aims to accelerate adoption.

The experiences of countries such as India and Thailand offer valuable lessons. During the early stages of their QR payment ecosystems, digital transactions were made almost free for merchants and consumers. The costs of processing payments were shared among governments, central banks, payment networks and financial institutions instead of being borne primarily by merchants.

These countries viewed QR payments not simply as another commercial payment product but as essential national digital infrastructure capable of promoting financial inclusion, improving tax transparency and bringing informal economic activity into the formal economy.

Bangladesh now faces a similar policy choice. A clear national framework is needed to determine how the costs of Bangla QR infrastructure and the Merchant Discount Rate should be shared among the government, Bangladesh Bank, commercial banks, payment networks and merchants.

The pace at which Bangla QR becomes a mainstream payment platform will depend largely on how effectively this challenge is addressed. A collaborative approach between policymakers, regulators and financial institutions will be essential to building a truly inclusive, secure and sustainable digital payments ecosystem.