DHAKA, Bangladesh, Aug. 21, 2023 /PRNewswire/ — Nagad, the world’s fastest-growing mobile financial service (MFS) provider, has led a revolutionary transformation in Bangladesh’s financial landscape. Through its people-centric products and services, the company has reshaped the way people handle their finances, offering a more convenient, secure, and affordable means of transactions.
With Nagad, cashless transactions have become an integral part of daily life for many Bangladeshis, be it sending money to loved ones, paying bills, or making purchases. The platform ensures that user data and financial information remain protected, inspiring confidence among users to embrace cashless payments. In fiscal 2022-2023, Nagad posted a 240% rise in digital payments.
Having reached the milestone of 80 million registered customers and daily transactions exceeding $112 million on average, Nagad’s impact is undeniable. The company’s enticing incentives, like cashback and exciting gifts, have further attracted people to non-cash transactions. Giving away a mega gift in the form of BMW car against a digital payment was unprecedented, contributing to a 10-time growth in financial transactions year-on-year in June 2023.
Moreover, in FY23, active wallets increased to 90% year-on-year, riding on various payment campaigns. Likewise, its revenue also rose 85% over the previous fiscal year.
The platform’s commitment to the nation’s cashless vision is complemented by strategic collaborations with the Bangladesh government. Partnering with Nagad to disburse social safety net allowances, education stipends, and subsidies digitally, the government has accelerated financial inclusion and reduced dependence on cash, ensuring timely benefits to intended beneficiaries. The company has so far disbursed over USD1.85 billion among beneficiaries.
Nagad’s remarkable penetration into rural areas through its extensive network of Uddoktas (agents) has empowered villagers and farmers with financial tools previously unavailable to them. This rural outreach has played a crucial role in advancing financial inclusion and uplifting rural economies. Now, 53 percent of the country’s population is engaged in formal financial services, according to the Global Findex Database.
According to an IMF’s Financial Access Survey-2022, in 2021, the number of MFS accounts climbed sharply to 910 per 1,000 adult population from only 10 in 2012.
Tanvir A Mishuk, founder and managing director of Nagad Limited, said, "From the get-go, Nagad has been working on integrating unbanked and underbanked people into financial inclusion and encouraging them to digital payments."
"We always keep in mind people’s affordability and convenience whenever we launch any products or services. This is how we have gained a large customer base at a faster pace, leading to a constant rise in digital transactions," he noted.
About Nagad Ltd (https://www.nagad.com.bd/)
Nagad Limited is one of the leading MFS operators in Bangladesh’s payment industry with 80 million registered customers and an average daily transaction of over USD$111 million. The digital payment platform, known as a successful public-private partnership between Bangladesh Postal Department and the private sector, was inaugurated in 2019 by Prime Minister Sheikh Hasina of the People’s Republic of Bangladesh.