E-commerce transactions through the banking channel increased by 54.26 per cent or Tk 508 crore in last fiscal year 2018-2019 compared with that in the previous fiscal year as customers became used to shopping through e-commerce sites.
As per the Bangladesh Bank data released on Sunday, e-commerce in terms of value through the banking channel increased to Tk 1,441.1 crore in FY19 from Tk 936.1 crore in FY18.
However, transactions through the banking channel constitute a minor part of the total e-commerce transactions as the majority of e-commerce and f-commerce businesses and the customers still prefer cash-on-delivery mode of payment.
In cash-on-delivery mode, e-commerce and f-commerce businesses receive cash upon delivery of products ordered online.
In terms of volume, the number of e-commerce transactions increased by 58.61 per cent or 15.11 lakh year-on-year in FY19.
Through the banking channel, 40.88 lakh transactions were executed in FY19 against 25.77 lakh transactions in FY18.
E-Commerce Association of Bangladesh general secretary Abdul Wahed Tamal told New Age, ‘Transactions through e-commerce sites have been on the rise as customers are becoming used to purchasing through such sites.’
Besides, growing use of cards and mobile financial services are among other reasons for the significant rise in e-commerce transactions through the banking channel, he said.
E-commerce businesses are also offering discount on purchases for payment through cards or MFS thus prompting the customers to pay through the banking channel, Tamal said.
He said that payment through the banking channel was highest 15 per cent to 20 per cent of the total transactions through e-commerce businesses and the rest payments were accepted in cash.
Tamal hoped that the transactions through the banking channel would increase further. The e-CAB general secretary, however, did not have any data on how much transactions of f-commerce were executed through the banking channel.
A significant portion of the formal e-commerce transactions was placed from abroad.
The BB data showed 5.96 lakh transactions worth Tk 598.1 crore were placed from abroad in FY18 and the figure increased to 9.64 lakh transactions worth Tk 771.5 crore in FY19.
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