• Friday, Dec 03, 2021
  • Last Update : 09:40 pm

Trust Bank and Axiata flag off MFS venture

  • Published at 01:37 am December 31st, 2020
Trust Bank and Axiata Group's logo

Trust Axiata Pay will focus on wallet-based services

The mobile financial service market is set to heat up with the entry of a new player, Trust Axiata Pay (TAP), a venture of Trust Bank and Malaysian telecommunications conglomerate Axiata Group.

Trust Bank holds 51 per cent stake in TAP and Axiata the remaining 49 per cent.

TAP, whose focus will be wallet-based services, got the no-objection certificated from the Bangladesh Bank last year. 

“I believe this new MFS will play a key role in implementing Prime Minister Sheikh Hasina's vision of a Digital Bangladesh,” said Army Chief Aziz Ahmed, also the chairman of Trust Bank, while inaugurating TAP on Wednesday.

To open a TAP account, a scan of the national ID card and a selfie will suffice, said TAP officials.

With TAP, users will be able to deposit/withdraw their money, pay utility bills, academic fees, armed forces-related recruitment fees, merchant payments, receive remittance from abroad, as well as top-upmobile balance. 

Its users will also be able to avail T-Cash's unique facilities such as payment of academic fees of 56 institutions, NID and passport-related fees.

TAP has been in the works for a while now.

In 2015, the two parties formed the joint venture company Trust Axiata Digital after the Malaysian company’s designs to offer digital financial services in Bangladesh was met with a roadblock thanks to the local regulations.

Axiata, the parent company of the country’s second-largest mobile operator Robi, offers digital financial services in Malaysia, Sri Lanka, Cambodia and Indonesia alongside its mobile business. 

DFS products include various savings schemes and business loans.

But in Bangladesh, mobile operators are not allowed to run MFS, sending Axiata to explore other avenues to further its DFS agenda.

In the end, it struck a partnership with Trust Bank, a concern of the Army Welfare Trust.

TAP’s entry into the MFS arena comes at a time when the platform’s popularity is fast rising amid the pandemic.

Transactions through the platform stood at Tk 53,258.8 crore in October, up 41 per cent year-on-year, according to data from the Bangladesh Bank.

October’s figure, which is up 8.5 per cent from a month earlier, is the second-highest since MFS was introduced nearly a decade ago.

While the platform has always been popular among the unbanked population for sending and receiving money, it has turned out to be particularly handy in making payment at a point-of-sale terminal, salary disbursement and utility bill payment during the pandemic.

In October, merchant payment through the channel stood at Tk 1,746 crore -- the highest yet. It hovered below Tk 600 crore until June, when the economy was reopened. 

The platform, which allows contactless payment by way of QR code, particularly became convenient to make payment at POS terminals in the time of coronavirus, which lingers on surfaces for hours. 

From July, merchant payment through MFS has been exceeding the Tk 1,000 crore-mark.

What is more encouraging for the platform is that person-to-person (P2P) transfers overtook cash-out to become the most common MFS transaction in October.

P2P transfers stood at Tk 16,566.5 crore, accounting for the biggest share of the total transactions made during the month.

October’s P2P transfers were an increase of 84.3 per cent from a year earlier 11.5 per cent from the previous month.

At present, bKash holds the lion’s share of the MFS account, with Bangladesh Post Office’s DFS arm Nagad fast taking up the market share of Dutch-Bangla Bank’s Rocket.

Shares of Trust Bank, which has been listed since 2007, closed the year at Tk 33.4, gaining 24.6 per cent during the course of 2020.

163
Facebook 153
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail