To accelerate the transition toward a cashless society, Bangladesh Bank's initiative, ‘Bangla QR,’ was introduced as a unified digital payment solution.
However, while tapping a smartphone to pay seems like a seamless tech evolution for consumers, the ground reality for small and medium enterprises (SMEs) across the country tells a different story.
For grassroot merchants, the appeal of cash transactions remains unchallenged, driven not by a resistance to technology, but by core economic mathematics and structural gaps in the digital supply chain.
Consider a standard transaction: A customer happily walks out of a store after using Bangla QR to pay Tk1,000 for a product, finding the experience both modern and efficient.
But behind the screen, the shopkeeper’s calculation begins. If the Merchant Discount Rate (MDR) is set at 1%, the system automatically deducts Tk10, leaving Tk990 to settle into the shopkeeper’s bank account.
The issue does not lie within the capability of the QR technology itself, but in the thin profit margins of small businesses.
If a grocer's net profit on a product is merely Tk70 to Tk80, losing Tk10 to a digital intermediary significantly slashes their livelihood.
Naturally, shopkeepers conclude that cash is simply more profitable than convenience.
The true benefit of a cashless ecosystem is lost when the digital loop is broken prematurely. In the current commercial landscape, a local pharmacy might collect a substantial amount of digital payments via QR codes throughout the day.
However, when the wholesale drug supplier shows up at night to collect dues, they demand cash, refusing digital or QR payments.
This forces the pharmacy owner to physically withdraw cash from a bank or a mobile financial service (MFS) agent.
This backtracking not only wastes time but often incurs additional cash-out charges, duplicating transaction costs.
Until the payment chain runs entirely digitally, Bangla QR’s core value proposition remains unfulfilled.
The revenue paradox
Small merchants also face a psychological and financial paradox when choosing their digital identities.
When a small business registers as a “merchant” to accept Bangla QR payments, they are penalized with an MDR deduction.
Conversely, if that same business operates as an MFS “agent,” they turn into a profit centre -- earning commissions on cash-ins, cash-outs, and utility bill payments.
Faced with a choice between a merchant account that drains their revenue and an agent account that pads it, small traders logically choose the model that increases their take-home income.
Beyond explicit transaction costs, an underlying anxiety deters small businesses from adopting digital payments.
Because every QR transaction creates an indelible electronic footprint, many small vendors fear that full transparency will inevitably expose them to complex tax scrutinies and regulatory complications.
While this fear may not be universally justified, it acts as a rigid psychological barrier in a predominantly informal economy.
Bangla QR at a glance
Expert recommendations
To transition Bangla QR from a novelty into an essential everyday utility, market analysts suggest a series of strategic interventions:
Wafiur Rahman is in charge of the business desk at Dhaka Tribune.