Bangladesh to Go Fully Cashless by 2027? Massive Payment Revolution Announced

Bangladesh Bank Governor Ahsan H. Mansur has announced an ambitious national goal: by July 2027, every financial service provider—banks, mobile financial service (MFS) operators, insurance companies, microfinance institutions and non-bank financial bodies—will be connected through a unified, fully interoperable digital payments infrastructure. Once implemented, customers will no longer need to withdraw cash to complete everyday transactions, marking a transformative shift towards a cashless economy.

The announcement was made at a high-level event held at the Westin Dhaka, where Bangladesh Bank signed a strategic agreement with Mojaloop, a global open-source digital payments initiative supported by the Bill & Melinda Gates Foundation. For security reasons, the agreement itself was executed virtually, although key figures from the country’s financial sector attended physically.

Under the agreement, Bangladesh will build a new national platform called the Inclusive Instant Payment System (IIPS). A limited form of interoperability has already been introduced using the National Payment System (NPS), but major players such as bKash and Nagad are not yet integrated. IIPS aims to bring every institution—large or small—onto a single, seamless network.

Governor Mansur emphasised that “there is no alternative to embracing digital payments.” He explained that greater transparency, reduced corruption and stronger revenue collection depend heavily on modernisation. By formalising the large informal economy through real-time digital transactions, Bangladesh’s GDP could expand by 2.5 to 5.4 per cent, equivalent to an additional USD 12–25 billion in economic output.

The governor noted that the country currently spends around 20,000 crore taka annually on cash-related management—printing currency, transporting it securely, and maintaining the logistical chain. “With IIPS, these costs will drop dramatically,” he said.

Michael Wiegand, Director of Inclusive Financial Systems at the Gates Foundation, highlighted Bangladesh’s long-standing position as one of only nine priority countries worldwide for financial inclusion. “We have been working for many years to help Bangladesh build a more inclusive financial ecosystem,” he added.

Syed Mahbubur Rahman, Managing Director of Mutual Trust Bank, said the initiative would be a turning point for the economy. Every transaction will create a digital footprint, ensuring transparency and reducing opportunities for misuse. He noted that when major platforms such as bKash and Nagad become interoperable, customers will experience real convenience—being able to make payments from any service to any other without barriers.

Also present at the event were Bangladesh Bank Deputy Governor Zakir Hossain Chowdhury, Director of the Payment Systems Department Sharafat Ullah Khan, and senior officials from banks and financial institutions across the country.