Customers are increasingly opting for mobile financial services to top up balances, helping mobile carriers earn more than Tk 1,000 crore a month for the first time from the sales processed through MFS providers. 

Mobile phone recharging through MFS providers rose 7.69 per cent to Tk 1,017 crore in April from a month ago, data from the Bangladesh Bank showed. The growth was about 30 per cent year-on-year.

The amount stood at around Tk 375 crore five years back.

In Bangladesh, mobile top-up through digital means has risen sharply in recent years on the back of a surge in MFS users and debit and credit card users.

The number of MFS accounts now stands at 20 crore and the number of SIMs in circulation is 18.5 crore, with many using multiple accounts and connections.

Currently, the monthly revenue of mobile operators stands at more than Tk 2,650 crore. This means recharging using MFS providers accounts for about 40 per cent of the revenue generated through the sales of talk time and internet data.

In April, Grameenphone's customers carried out 59 per cent of their balance top-up directly through its agents, while the rest was done digitally using the MFS network and debit and credit cards.

BKash alone accounts for 23 per cent of GP's total recharge, while Nagad constitutes 4 per cent and Rocket makes up 1 per cent.

Rifat Jahan, a resident in the capital's Mirpur area, is one of the mobile phone users who has completely moved towards digital purchase of mobile talk-time and internet.

"I can't remember the last time I went to any store to have my mobile phone topped up. I mostly use MFS accounts. And whenever adequate balances are not available on the accounts, I ask my husband to recharge the phone using his credit card."

Robi-Axiata's digital sales comprise approximately 45 per cent of its overall recharge volume.

"It signifies our considerable transition towards digital platforms," said Shahed Alam, chief corporate and regulatory officer of the second-largest operator in the country.

Digital recharge has experienced widespread popularity across the globe in recent years, particularly in the wake of the Covid-19 pandemic, which forced customers to accelerate the use of digital technologies to stay connected.

"Bangladesh is no exception. We have witnessed a significant increase in the use of digital channels for mobile balance recharging," Alam added.

BKash is the most-preferred platform for customers when it comes to topping up balances.

According to the largest MFS operator, more than 7 crore customers top up balances using the networks of Airtel, Banglalink, Grameenphone, Robi and Teletalk.

"To fully utilise the conveniences of mobile phones, an uninterrupted voice and data connection is a must. Therefore, topping-up mobile balance whenever required is crucial," said Shamsuddin Haider Dalim, head of corporate communications of bKash.

BKash allows its users to recharge mobile balance and purchase talk time and internet data, for their own consumption as well as for others. In order to enhance user experience, bKash has introduced the auto-recharge feature.

"The balance is recharged automatically from the bKash account," Dalim added.

The popularity of digital recharge has had an impact on agents, said a number of retailers.

Mohammad Alam, an agent in Habiganj, has been working as a recharge agent for more than 18 years, selling talk time and internet data and cards.

Once he would meet his family expenses by providing phone call service, topping up mobile phones, and selling cards and SIMs.

But at one point, his average monthly income from the mobile recharge business fell to Tk 8,000 owing to the increase in top-ups through MFS providers.

"It was impossible to run a family with the money," he said.

Fortunately, Alam has become an agent of MFS platforms to render cash-in and cash-out services. He also retails mobile accessories and food items such as chips and cold drinks with a view to making a decent living.

Agents have long been getting Tk 27.50 from operators for topping up every Tk 1,000. The commission can climb to as high as Tk 120 if users make high-value purchases.

A number of agents have demanded an increase in the commission since the rate has remained unchanged for more than two decades.

According to industry people, about 3.5 lakh people work as agents of mobile phone operators.

In order to diversify revenue streams, many pharmacies and groceries also offer mobile top-up services.