Bangladesh Launches MFS Interoperability Without bKash and Nagad

MFS Interoperability System Goes Live in Bangladesh

Bangladesh Bank officially launched its long-anticipated mobile financial services (MFS) interoperability system on November 1, 2025, aiming to facilitate instant fund transfers between mobile wallets, bank accounts, and other institutional accounts. This initiative, utilizing the National Payment Switch of Bangladesh (NPSB) infrastructure, is designed to reduce cash transactions and enhance financial inclusion across the country.

bKash Seeks Extension Citing Security Concerns

Despite the launch, bKash, the largest MFS provider in Bangladesh, has not fully integrated into the new system. The company requested a three-month extension until January 31, 2026, citing concerns over its system's security readiness. While bKash can currently receive incoming transactions through the interoperable system, it cannot yet facilitate outgoing transfers. Bangladesh Bank has reportedly instructed bKash to enable both incoming and outgoing transactions, indicating potential action if compliance is not met. Shamsuddin Haider Dalim, head of corporate communications at bKash, stated that the company has taken the necessary steps for integration.

Nagad Excluded Due to Licensing Complications

Nagad, the country's second-largest MFS operator, also remains outside the newly launched interoperable system. The Bangladesh Bank has not granted approval to Nagad due to ongoing licensing complications. Nagad has been operating under the central bank's administration since August 2024, following a change in regime. The MFS provider was initially launched by the Postal Department in March 2019 without prior central bank approval, and its interim approval has been extended multiple times, currently valid until December 2025. Muhammad Zahidul Islam, head of media and communication at Nagad, confirmed that the company had applied for approval months ago but had not received a response.

Initial Participants and Regulatory Stance

The interoperable system commenced operations with a limited number of participants. Initially, only three MFS providers—Islami Bank mCash, Rocket, and Islamic Wallet—and six banks—Islami Bank, BRAC, Eastern, Pubali, Mutual Trust Bank (MTBL), and Al-Arafah Islami Bank—joined the platform. The Bangladesh Bank had issued a circular on October 13, 2025, announcing the November 1 launch. Arif Hossain Khan, Executive Director and Spokesperson for Bangladesh Bank, described the current interoperability as 'theoretical' due to the absence of market leaders bKash and Nagad. He also questioned why bKash, a major player, was not ready for integration when smaller operators were participating. The maximum transaction fee for sending Tk1,000 between MFS platforms has been set at Tk8.50, with charges borne by the MFS providers and banks, not the customers.