Bangladesh Bank (BB) is set to roll out a digital platform based on 'Mojaloop'- a single gateway for all sorts of digital financial transactions, connecting banks, mobile wallets, microfinance firms and other financial services.
The platform, being developed under Inclusive Instant Payment System (IIPS), will unify remittance, money transfers, QR-code payments, virtual identifier (VID)-based transfers, and other digital transactions under one interoperable platform by July 2027, aiming at total digitalization of financial services in the country.
The IIPS is designed to eliminate the longstanding fragmentation of Bangladesh's financial ecosystem, where banks, MFS providers, and microfinance institutions have traditionally operated in parallel rather than in harmony.
Once live, users will be able to move money instantly - bank-to-wallet, wallet-to-bank, bank-to-MFI, and more - without waiting times or cross-network restrictions. Payments to merchants, from roadside vendors to large enterprises, will be made via a universal QR or VID, eliminating the need for cash withdrawals or multiple mediating layers.
Sources say the platform will facilitate remittances, peer-to-peer transfers, merchant transactions, and institutional disbursements - all through one integrated system.
BB Governor Ahsan H. Mansur emphasized the urgency of adopting Mojaloop, noting that previous interoperability initiatives failed due to limited participation. "We need to transform our entire transaction ecosystem into a cashless one," he said.
"With IIPS, transparency will improve, informal cash flows will shrink, and revenue collection will strengthen. The system will bring banks, MFS providers, microfinance institutions, and insurers into one network."
A senior BB official from the Payment System Department said IIPS is not merely a technical enhancement - it is a structural overhaul. The central bank will issue directives requiring all licensed financial entities to connect to the platform.
Integrating traditional banking with MFS, VID, and QR-based mechanisms will simplify compliance, reduce inefficiencies, and ensure digital payments are universal, frictionless, and affordable.
The rollout comes at a time of rising demand for fast, safe, and low-cost digital payments. Though electronic transactions via MFS, internet banking, cards, and QR have expanded rapidly in recent years, cash continues to dominate, especially for large-value dealings.
Once operational, IIPS will empower users - urban or rural - to make seamless transfers, whether sending remittances to families, paying shopkeepers via QR, or receiving microfinance disbursements or institutional payouts. For businesses, receiving payments will become faster and more convenient across heterogeneous banking and wallet platforms. And for policymakers, the system promises higher traceability, reduced cash-handling overhead, and stronger economic formalization.
If implemented as planned by mid-2027, the Mojaloop-powered IIPS could mark the single biggest evolution of Bangladesh's payment infrastructure - connecting all financial participants under one digital gateway and enabling secure, instant, and inclusive financial interaction at the national scale, said another senior BB official.
