Bangladesh Bank (BB) is targeting July 2027 to launch the Inclusive Instant Payment System (IIPS), a unified digital payment platform designed to connect banks, mobile financial service (MFS) providers, and other financial institutions across Bangladesh.
Developed with technical support from the Gates Foundation's open-source Mojaloop initiative, IIPS aims to build a fully integrated, interoperable payment ecosystem.
Currently, fragmented payment networks restrict customers from transferring funds across different service providers smoothly.
Existing infrastructure, such as the National Payment Switch Bangladesh (NPSB)—introduced in 2012 for ATMs, point-of-sale systems, and internet banking—has struggled to bring all major MFS operators and non-bank financial institutions under one common network.
Earlier efforts to enforce interoperability with capped transaction fees failed to achieve full participation from key MFS players.
BB executive director Md Sirajul Islam acknowledged these shortcomings, emphasizing that IIPS will overcome structural barriers by providing a more comprehensive technological framework.
Once operational, IIPS will enable real-time, direct transfers across participating entities for person-to-person payments, merchant transactions, business operations, and government disbursements.
By establishing a shared infrastructure, the central bank aims to expand financial inclusion, reduce dependence on cash, improve payment efficiency, and reach populations currently outside the formal banking sector.
Beyond domestic transactions, IIPS holds strong potential for improving international remittance distribution.
In July 2026, the Policy Research Institute of Bangladesh (PRI), supported by the Gates Foundation, launched a study examining IIPS and cross-border remittances.
PRI chairman Zaidi Sattar noted that remittances account for roughly 6 percent of Bangladesh’s GDP, stressing the need to channel these funds through formal, productive pathways.
Connected to authorized international networks, IIPS could deliver overseas funds to local bank accounts and mobile wallets faster and at lower costs, provided cross-border settlement mechanisms and foreign exchange regulations are properly aligned.
The shift toward digital payments offers broader economic benefits.
Reducing physical cash handling lowers the operational expenses associated with printing, transporting, and managing paper currency.
For businesses, it translates to better accounting practices and lower transaction costs, while the government can streamline the distribution of public salaries, subsidies, and social safety net payments.
The ultimate success of IIPS will depend on securing full participation from major financial institutions, ensuring system reliability and cybersecurity, keeping transaction costs affordable, and building public trust.
If executed effectively, the July 2027 rollout will mark a major milestone in modernizing Bangladesh’s financial landscape toward greater transparency and economic inclusion.