Syed Mohammad Kamal 
Country Manager
Mastercard Bangladesh

In conversation with Syed Mohammad Kamal, Country Manager, Mastercard Bangladesh

The Daily Star (TDS): How is Bangladesh progressing in its transition to a cashless economy?

Syed Mohammad Kamal (SMK): Bangladesh is making steady progress toward a cashless economy, with digital transactions becoming increasingly common. The momentum was particularly strong during the COVID-19 pandemic period when digital payments surged from 16% to 41%. However, concerns over platform reliability led to a decline, bringing digital transaction volumes to 23% in 2024.

TDS: What innovative steps has your organisation taken to accelerate the shift toward a cashless economy, and how have they impacted customers?

SMK: At Mastercard, we are committed to building a seamless digital payment ecosystem by catering to diverse segments, including CMSMEs, SMEs, youth, tourism, women and HNI consumers. Our recent partnership with a MSME aggregator and a NBFI has empowered CMSMEs by providing them access to the formal financial system.

Additionally, we have introduced prepaid cards for garment workers, enabling 4.5 million workers to receive salaries digitally—enhancing their financial security and access to banking services that were previously unavailable. As a key partner in driving digital payments for financially excluded small merchants, Mastercard has collaborated with regulators and stakeholders to fully digitise two major kitchen markets in Dhaka. This initiative has transformed merchant operations, ensured faster and more secure transactions while encouraged customers to adopt digital payments in their daily shopping.

To further promote financial inclusion, Mastercard has introduced a social media card designed specifically for F-commerce women entrepreneurs, helping this traditionally cash-dependent sector transition to the digital economy. We have also facilitated widespread adoption of contactless payment options and introduced exclusive products, including the country's first full-suite travel credit card, medical prepaid cards, and specialised solutions for youth, millennials, and freelancers.

TDS: What policy changes or government initiatives do you believe are crucial for making digital transactions more secure, inclusive, and widely adopted?

SMK: The mandatory income tax return requirement for credit card issuance discourages many from using formal financial services. Removing this barrier would encourage wider adoption and drive financial inclusion. Revising tax policies is also critical to accelerating digital payment adoption.

To further boost cashless transactions, targeted incentives for both consumers and merchants can play a pivotal role. A small incentive—such as 3% for consumers and 2% for merchants for accepting digital payment —could significantly increase digital transactions, encouraging businesses and individuals to shift away from cash.

At the same time, it is essential to avoid dependency on a single entity for digital financial services. Regulators should take necessary steps to ensure a level playing field, fostering competition and innovation in the payment ecosystem. An integrated payment system across all banks—enabling seamless interoperable transactions for tolls, transport, and utilities—would eliminate inefficiencies. Simultaneously, financial literacy campaigns can educate consumers, ensuring wider adoption.