By Naima Sultana
It is still a vivid memory for many that paying an electricity bill, a tuition fee, or withdrawing a salary once meant standing in long queues at bank branches for hours. However, with the advent of internet banking, ATM booths, mobile financial services (MFS), and digital payment platforms, the entire landscape of financial transactions has undergone a transformation.
Today, financial institutions offer a range of technologies enabling users to complete transactions with just a few taps. Fintech — the integration of traditional banking with advanced technologies such as the Internet of Things (IoT), big data, cloud computing, and artificial intelligence (AI) — has made financial services more accessible, cost-effective, and user-friendly, particularly for underserved communities, including those in rural areas and women.
As of 2025, Bangladesh stands on the brink of a new milestone: the introduction of Google Pay, the global tech giant’s digital wallet platform. On the surface, it may appear to be yet another e-wallet, enabling users to store card details, tap to pay at retail outlets, or transfer money to family and friends.
But for urban dwellers already immersed in a digital lifestyle — ordering groceries via apps, streaming films, or booking healthcare services online — Google Pay promises to make everyday transactions as effortless as unlocking a phone.
The platform has the potential to unify disparate banking systems, consolidate loyalty programmes, and ultimately render physical wallets obsolete. For a nation on the cusp of full-scale digital transformation, its arrival is timely and potentially game-changing.
Simultaneously, the launch of the world’s first biometric metal credit card by Eastern Bank PLC (EBL) and Mastercard marked another significant leap in payment innovation. Part of Mastercard’s ultra-premium World Elite portfolio, the card merges biometric authentication with a sleek metal finish, delivering enhanced security and an elevated user experience.
With this innovation, cardholders can authenticate purchases using just their fingerprint—eliminating the need for PINs or signatures. This secure, frictionless experience is underpinned by sophisticated biometric technology that ensures only the authorised user can complete a transaction. Additionally, cardholders receive access to a 24/7 global concierge service, assisting with everything from last-minute reservations to bespoke travel itineraries.
While the banking sector contends with rising non-performing loans (NPLs), some institutions are setting new standards through innovation and sound governance. Their efforts are redefining banking by simplifying payment experiences. In the financial year (FY) 2022–23, internet banking users rose by 44.6 percent, reaching 78.1 million. By December 2024, the number of registered MFS accounts had reached 238 million, with monthly transactions totalling Tk 670 million.
Initiatives such as Bangla QR and the Binimoy platform have fostered interoperability, enabling seamless digital transactions between banks, MFS providers, and payment service platforms. In line with these developments, the Bangladesh Bank has introduced digital banking guidelines to steer the financial sector into a more secure, agile, and innovative future.
As of 2025, Bangladesh stands on the brink of a new milestone: the introduction of Google Pay, the global tech giant’s digital wallet platform. On the surface, it may appear to be yet another e-wallet, enabling users to store card details, tap to pay at retail outlets, or transfer money to family and friends.
Simultaneously, the launch of the world’s first biometric metal credit card by Eastern Bank PLC (EBL) and Mastercard marked another significant leap in payment innovation. Part of Mastercard’s ultra-premium World Elite portfolio, the card merges biometric authentication with a sleek metal finish, delivering enhanced security and an elevated user experience.
As digital banking gains traction, cybersecurity is becoming increasingly crucial. Banks are investing heavily in data encryption, fraud detection, and intrusion prevention systems. Bangladesh Bank’s “Guideline on ICT Security for Banks and FIs” has laid a strong foundation for a secure digital financial ecosystem.
From account management and bill payments to investment services, Bangladeshis are increasingly taking control of their finances via smartphones. BRAC Bank PLC, for instance, launched the Astha Lifestyle super app in 2023—the first of its kind in the local banking sector.
AI-powered chatbots are transforming customer service, providing 24/7 support for routine enquiries and problem resolution. Meanwhile, AI-driven credit scoring models are expanding access to finance for high-potential borrowers, fostering greater financial inclusion.
City Bank PLC has emerged as a frontrunner in fintech adoption. The bank offers mobile wallets, QR code and NFC-based contactless payments via smartphones and smartwatches. These innovations have reduced transaction times and enhanced convenience. Leveraging AI and machine learning, City Bank now analyses customer data to evaluate creditworthiness and customise financial products. The automation of loan profiling and statement analysis has improved operational efficiency for both the bank and its clients.
In December 2021, City Bank, in partnership with bKash, launched a new type of loan, named “Digital Nano Loans”, a service that continues to provide small-scale credit access to the masses.
Mutual Trust Bank PLC (MTB) has also embraced innovation. The bank’s interoperable platforms facilitate transfers between MFS operators and banks, while QR payments streamline retail experiences. MTB is utilising AI-based credit scoring for microloan disbursement and collaborating with fintech startups. The bank is exploring blockchain for cross-border payments and has expanded agent banking in rural regions.
Moreover, it has implemented biometric verification for account opening, ensuring KYC and AML compliance. Through open banking and API integration, MTB supports a collaborative fintech ecosystem.
Dhaka Bank PLC is similarly leveraging fintech to enhance its offerings, providing mobile applications, SME digital loans, and a suite of online payment solutions.
Non-bank financial institutions (NBFIs) such as IDLC Finance PLC are also active in the fintech space. In partnership with bKash, IDLC launched Digital Payment Services (DPS), successfully onboarding over 1.2 million account holders, many of whom are women, thereby promoting financial inclusion.
How Effective is Google Pay?
Google has consolidated its mobile payments under the Google Wallet brand. This app allows users to store cards, pay contactlessly, and manage transport tickets and loyalty cards—all within one platform. To use Google Wallet, users must have an Android device running version 9 or above, updated Google Play Services, a Google Account, and meet regional age requirements.
Making payments is intuitive — simply unlock the device and hold it near a contactless terminal. Once a blue tick appears, the payment is complete. Users can also select a preferred card before tapping.
To enable contactless payments, devices must support NFC and have it activated, with Google Pay set as the default app. Once a card is added and verified, the device becomes a secure payment tool.
Beyond payments, the wallet stores transport passes, event tickets, and boarding passes, providing a centralised space for daily essentials.
On June 24, City Bank PLC enabled Google Pay for contactless transactions through Mastercard and Visa. Customers can now link their cards to Google Wallet and pay at NFC-enabled terminals. More banks are expected to follow soon.
Security, a primary concern, is well addressed. Google Pay employs biometric authentication, PIN locks, and remote wipe capabilities via Find My Device, ensuring safety even if a phone is lost or stolen. It doesn’t store actual card numbers but uses virtual tokens, making unauthorised transactions extremely difficult.
However, like many digital wallets, Google Pay requires internet access for most transactions unless pre-configured for offline NFC subject to merchant and device compatibility.
The Road Ahead for Banking in Bangladesh
The future of banking lies in becoming a comprehensive financial service provider. While addressing structural challenges such as NPLs, the sector must focus on strengthening credit evaluation and recovery processes. Enhanced governance through transparency and accountability will boost investor confidence and unlock growth potential.
Technology is central to this transformation. Agile risk management frameworks powered by fintech and advanced analytics can mitigate credit risk while enabling infrastructure finance. With digital banking, new financial models such as venture capital, wealth management, and open banking can take root, fostering collaboration and innovation.
This journey is not merely about modernising transactions; it’s about empowering individuals and entrepreneurs, supporting small businesses, and driving inclusive economic growth. As Bangladesh embraces the Fourth Industrial Revolution, fintech is set to play a pivotal role in shaping the nation’s economic destiny.
By harnessing technology to deliver secure, inclusive, and convenient financial services, banks and MFS providers are helping bridge the gap between the unbanked and the financial system. In doing so, they are not only transforming banking but also building a brighter, more equitable future for all.
