What Is the Impact Of the COVID-19 Pandemic On the Digital Payment System?

How did you send money to Bangladesh during the lockdown? Bangladesh has recently experienced rapid technological progress, with a current internet penetration rate of 60.7 per cent. 1st This has created a plethora of new possibilities for companies and services to flourish. The growth of digital payments is one of the most visible developments in Bangladesh right now. As a result of this change, a digital ecosystem has sprung up, adding value to the economy as a whole.

Bangladesh is a business-friendly country with 168.367 million people having access to cell phones and 101.905 million using mobile internet. According to market data, about 45 per cent of people own a smartphone, implying that 76.5 million Bangladeshis have at least one smartphone in their pocket. As a result of the recent COVID scenario, the whole dynamic of the payment sector and the country’s economic situation have changed drastically, as it has never done before.

Because of the need for contactless payments, the COVID 19 pandemic was a game-changer for Bangladesh’s digital payment ecosystem. In addition to promoting trade, money transfer to Bangladesh by expatriates helped the government disburse financial aid to the poor during COVID-19.

What’s Online Money Transfers Trend During Pandemic?

The economic significance of Bangladesh’s more than 10 million migrant workers, who send money to Bangladesh online at nearly $18 billion home in 2019, cannot be overstated. International remittances usually account for around 7% of Bangladesh’s GDP. However, the COVID-19 pandemic is wreaking havoc on Bangladeshi migrant workers abroad, disproportionately concentrated in countries with strict quarantine policies. Due to many Bangladeshi employees in the European countries, secondary economic effects such as lower demand and lower oil prices would likely strain remittances.

Why does Bangladeshi Government need To Cooperate with Migrants To Get High Remittance?

The discussion about migrant workers must begin with the need to stop the country’s money transfers from dropping.

Many migrant workers to the EU, who mainly worked in the tourism, hotels, and construction industries, have been laid off and have few job opportunities. With coronavirus outbreaks in the EU and, more recently, United Kingdom, it has been confirmed that the pandemic has been felt primarily by migrant workers, who live in crowded, dormitory-style work camps and are particularly vulnerable to COVID-19. These migrant’s online money transfer to Bangladesh is significant support for the countries economy.