Cenbank pushes for unified QR payment – what it means for customers

Highlights:

• Bangla QR mandatory across banks and mobile financial service providers
• Single QR enables payments across all participating platforms
• NPSB now settles all QR transactions centrally
• Unified system reduces cash use and payment infrastructure costs
• Major banks and MFS providers completed Bangla QR integration
• Adoption remains limited despite mandate and lower merchant fees

The Bangladesh Bank has made its unified payment standard, Bangla QR, mandatory for all banks and mobile financial service providers to eliminate fragmented digital payment systems and allow consumers to complete transactions across any platform using a single QR code.

The directive, which took effect on 1 July, requires financial institutions to replace their individual quick-response (QR) codes with the standardised Bangla QR specification.

This framework enables customers to make seamless digital payments across different platforms using a single QR standard, regardless of whether they use a banking application or an MFS network such as bKash, Nagad or Rocket.

All transactions will now be settled through the National Payment Switch Bangladesh (NPSB), moving away from previous bilateral arrangements between individual service providers.

What it means for customers

Previously, customers could make QR payments only at merchants displaying QR codes issued by their own payment provider. For example, a bKash user could pay only at merchants accepting bKash QR codes.

The unified Bangla QR removes those restrictions by allowing payments across different banks and MFS platforms through a single QR standard, expanding merchant acceptance and reducing dependence on cash.

Central bank officials said customers will no longer need different payment applications or separate QR codes for different merchants. They believe the common standard will encourage wider adoption of digital payments and accelerate Bangladesh's transition towards a cashless economy.

The system is also expected to reduce cash handling costs, lower the risk of counterfeit currency, eliminate change-related inconveniences and improve financial inclusion.

Previously, many merchants displayed multiple QR codes or maintained several point-of-sale terminals to serve customers using different payment platforms. Officials said the unified system will simplify payment infrastructure and reduce duplication.

As Bangladesh imports most electronic payment infrastructure, including POS terminals, officials expect the streamlined system to lower costs and reduce foreign currency outflows.

Industry readiness

While the Bangladesh Bank introduced the Bangla QR specification in the 2019-20 period, widespread adoption faced delays because financial institutions required substantial time to upgrade their core banking systems, switches and customer applications.

The market has now reached a critical turning point as major players have completed their migrations.

Shamsuddin Haider Dalim, head of corporate communications at bKash, told TBS that the MFS has installed Bangla QR codes across its vast merchant network, which represents more than half of the estimated 10 lakh QR-enabled merchants in the country.

Similarly, Md Motasem Billah, administrator of Nagad, said the MFS implemented the unified system across all divisional cities in June after securing a connection to the NPSB.

Commercial banks are also heavily integrated.

Syed Mahbubur Rahman, managing director of Mutual Trust Bank, said the lender has deployed over 1 lakh codes nationwide, while Arup Haider, deputy managing director of City Bank, said the lender has more than 40,000 active Bangla QR points with plans to double that figure within the next year.

Adoption hurdles remain

Despite the regulatory mandate, daily transaction volumes through Bangla QR currently remain modest at just over Tk20 crore, compared with internet banking transactions that exceed Tk3,500 crore daily.

Industry experts attribute this low volume to incomplete ecosystem integration. Around 30 to 35 institutions have successfully adopted the system out of more than 70 operating banks, MFS providers and payment service providers.

Furthermore, several state-owned and foreign commercial banks still lack the mobile applications necessary to facilitate QR transactions.

To stimulate merchant adoption, the central bank has revised the Merchant Discount Rate (MDR) structure for transactions processed via the NPSB. The central bank set a minimum MDR floor of 1% and kept the maximum ceiling capped at 1.15%, with applicable value-added tax charged separately.

This replaces previous structures where merchants frequently faced fees between 1% and 2%, which had discouraged low-margin businesses such as pharmacies and small retail shops from accepting digital payments.

Central bank officials emphasise that a single QR standard reduces the duplication of POS terminals and physical infrastructure. Because Bangladesh imports most of its electronic payment infrastructure, streamlining these systems is expected to lower overall digital transaction costs and reduce foreign currency outflows.