The launch of Taka Pay, the first digital prepaid card in Bangladesh by Bangladesh Bank, marks a major milestone in the country’s journey towards a cashless economy. The card has the potential to revolutionize digital payments and financial inclusion in Bangladesh.
What is Taka Pay Card?
Taka Pay is a prepaid, multipurpose digital card that allows users to make contactless payments through Near Field Communication (NFC) technology. It can be used for both offline and online purchases. The card is linked to an e-wallet app which can be topped up through different channels like debit cards, credit cards, mobile financial services, bank accounts etc.
The card has been launched by Bangladesh Bank in partnership with different scheduled banks, Mobile Financial Service Providers and card network companies like Visa. It aims to push the agenda of digital transactions in the country.
How does Taka Pay Card work?
- A customer needs to download the Taka Pay app on their smartphone and complete a one-time registration process by providing basic personal details.
- After registration, they can apply for the prepaid card through the app. The card will be delivered to the customer within 7 working days.
- The app is linked to the card and acts as an e-wallet. Customers can add money to the e-wallet via different payment methods like mobile banking, debit/credit card, bank transfer etc.
- The balance in the e-wallet can be used to make payments through the Taka Pay card.
- For offline payments, just tap the card on a Point of Sale (POS) machine which supports contactless payments through NFC technology. The payment will be deducted from the card balance.
- For online payments, provide the virtual card details available in the app during checkout.
- Customers can also generate QR codes through the app to make QR based payments.
Benefits of Taka Pay Card
Taka Pay card promotes cashless transactions which are more convenient, seamless and safer than dealing with physical cash. It also provides an option for contactless payments which is extremely relevant during current times.
The card brings the unbanked and underbanked population into the formal financial system by providing them access to digital payment channels. Around 50% of Bangladeshis do not have a bank account currently.
The cards come with EMV chip technology which provides enhanced security for payments. All transactions are authorized using OTP, passwords or biometrics for user authentication.
Offline and Online Usage
The multipurpose prepaid card can be used across offline retail stores with POS machines and also for purchasing on eCommerce websites, apps and social commerce platforms.
The prepaid card is accepted across all participating banks, MFS providers and merchants. This interoperability promotes wider adoption.
Digital Transaction History
The app provides instant notifications for all transactions. Customers can view their detailed e-statement through the app for analyzing spending patterns and managing expenses better.
How will Taka Pay Card function?
Taka Pay Card will function similar to any other digital debit or credit card with some key differences:
- It will be affiliated to the National Payment Switch Bangladesh (NPSB) which connects ATMs and payment systems of all banks in the country.
- Instead of routing via Visa or Mastercard, authorization and settlement of Taka Pay transactions will happen over the NPSB network.
- Cards will be issued by banks to their customers like regular debit or credit cards. Sonali Bank, City Bank and BRAC Bank are the initial issuers.
- It can be used to withdraw cash from ATMs of any bank, make payments on POS machines and for online transactions.
- Transactions will reflect in the bank account linked to the card, like regular debit cards. Credit card variants may be launched later.
- Banks will promote the card to merchants to install POS machines accepting Taka Pay. Its acceptance may start with larger stores and then expand.
- Tokenization, fraud monitoring, dispute resolution and other aspects will be as per NPSB standards similar to any domestic card network.
- Bangladesh Bank will define customer protection guidelines, security protocols, pricing norms and other operating regulations for the system.
Frequently Asked Questions
How to apply for Taka Pay Card?
Download the Taka Pay app and complete the registration process. Then apply for the card through the app. The bank will verify your details and deliver the card to your mailing address within 5-7 working days.
What is the maximum limit on the card?
As per Bangladesh Bank guidelines, the maximum limit on the Taka Pay prepaid card is currently BDT 50,000.
What are the charges for using the Taka Pay Card?
There are no annual or joining fees for the card. Transaction charges are applicable as per existing guidelines of Bangladesh Bank and card network companies.
Can I use the card for international transactions?
No, currently the Taka Pay card can only be used for domestic transactions within Bangladesh. Support for international transactions may be introduced in the future.
How do I check my card balance and transaction history?
You can check your card balance and view transaction history in the Taka Pay app which is linked to your card. You will get instant notification for all transactions on the app.
What should I do if my card is lost or stolen?
Immediately call the bank’s hotline number to block your card. You can also block the card instantly through the app. After blocking the card, you can request for issuance of a new card.
The launch of Taka Pay is a major step forward for Bangladesh in transitioning towards a digital economy. If adopted widely, it has the power to revolutionize payments, ecommerce and financial inclusion in the country. With Taka Pay, Bangladesh is joining the global digital payment revolution.