Author(s)

Md Mehedi Hasan¹, Rokeya Tamanna Mukta², Zahir Rayhan³, Iva Rani Das^4*

Affiliation(s)

¹Department of Marketing, Shaikh Burhanuddin College, Dhaka Bangladesh.

²Masters of Social Science (MSS) in Economics at Chandpur Govt College, Chandpur, Bangladesh.

³School of Business Administration, Masters in Marketing, Prime University, Dhaka, Bangladesh.

⁴Mphil Scholar, Department of Marketing, University of Dhaka, Bangladesh.

Corresponding Author

Iva Rani Das

ABSTRACT

This study aims to explore the challenges, opportunities, and policy implications of adopting cashless payment systems in rural Bangladesh, focusing on how digital financial services can promote economic development and financial inclusion in these areas. The study is based on an extensive literature review that includes journal articles, research papers, government reports, and credible news sources to analyze the factors influencing the adoption of cashless payment methods in rural Bangladesh. The findings show that, despite the increased use of mobile financial services, various challenges, including inadequate digital infrastructure, low financial literacy, cultural preferences for cash, and security concerns, impede the transition to a cashless society in rural areas. However, there is potential to improve financial inclusion, economic efficiency, and transparency. Countries such as India and Kenya have provided useful insights for integrating digital banking services in rural areas. The study closes with policy recommendations that include investing in digital infrastructure, financial literacy initiatives, adoption incentives, improving cyber security, and developing public-private partnerships to promote the transition to a cashless society in rural Bangladesh.

KEYWORDS

Cashless payment systems; Rural Bangladesh; Financial inclusion; Digital infrastructure; Mobile financial services

CITE THIS PAPER

Md Mehedi Hasan, Rokeya Tamanna Mukta, Zahir Rayhan, Iva Rani Das. Adoption and impact of cashless payment systems in rural Bangladesh: challenges, opportunities, and policy implications. Social Science and Management. 2024, 1(3): 39-47. DOI: https://doi.org/10.61784/ssm3029.

REFERENCES

[1] Ishak MF, Mahmood AN, Mohamad I, et al. Adoption of Cashless Payment Among Undergraduate Students: A Case Study. Inf. Manag. Bus. Rev., 2024, 16: 1072-1085. DOI: 10.22610/imbr.v16i3S(I)a.4197.

[2] J Fardous, A Mannan, Z Hasan, et al. Customers and Agents Satisfaction on Adoption of Mobile Financial Services (MFS): A Study with Particular Reference to bKash, Rocket, and Nagad. lOSR Joumals, 2023: 28-44. DOI: 10.9790/487X-2504042844.

[3] L Lawchak. Moving Kurdistan Region of Iraq Into a Cashless Society. 2020.

[4] B Bubanja. The security aspects associated with non-cash transactions in the digital economy. Serbian J. Eng. Manag., 2024, 9: 33-39. DOI: 10.5937/SJEM2401033B.

[5] B Patrick, A Adedemeji, A Adedoyin. Evolution of POS Technology in Nigeria’s Banking Sector. 2023.

[6] L Jayan. Digital Accounting Infrastructure: Needs, Gaps, and Opportunities in Indias Rural MSME Landscape. Int. J. Res. Appl. Sci. Eng. Technol., 2024, 12: 1648-1651. DOI: 10.22214/ijraset.2024.63344.

[7] C Jeyadevi J, M Duraisamy. USAGE OF E-WALLET PAYMENT SYSTEMS IN MODERN LIFE BY COMMON PEOPLE IN INDIA. 2023.

[8] K Fathima, V Bharathi. Cashless Payment System: A Study on Perception of Small and Medium Retailers. Int. J. Adv. Bus. Stud., 2024, 3: 21-30. DOI: 10.59857/IJABS.2570.

[9] C Geiger. Elaborating a Human Rights-Friendly Copyright Framework for Generative AI. IIC - Int. Rev. Intellect. Prop. Compet. Law, 2024, 55. DOI: 10.1007/s40319-024-01481-5.

[10] A Patil, Micro Funding Market. Forecasting a Rise to $519.84 Billion by 2032, According to the Introspective Market Research. 2024. DOI: 10.13140/RG.2.2.15503.19363.

[11] R Jain, A Panghal, N Chaudhary. Financial Inclusion in Rural Areas and Poverty Reduction in India. Springer handbooks, 2024: 73-88. DOI: 10.1007/978-3-031-67523-2_6.

[12] Q Li. The Impact of Mobile Payments on the Financial Management Efficiency of Small and Medium-Sized Enterprises. Int. J. Interact. Mob. Technol., 2024, 18: 171-184. DOI: 10.3991/ijim.v18i21.52245.

[13] A Bromideh, M Ansari, M Alefpour. Explorative Model of Social Media Marketing Barriers in Iranian SMEs. ACS Energy Letters, 2024, 20. DOI: 10.22070/CS.2024.18640.1361.

[14] M Shehadeh, H Al-lawati, K Hussainey. Digital financial literacy and usage of cashless payments in Jordan: the moderating role of gender. Int. J. Account. Inf. Manag., 2024.

[15] S Kassim, S Ismail, N Idris, et al. Cashless Payment among Rural Youth in Malaysia: Push Factors and Challenges. Inf. Manag. Bus. Rev., 2024, 16: 143-150. DOI: 10.22610/imbr.v16i4(S)I.4295.

[16] O Klyuchko, N Fomenko. 3G, 4G MOBILE TECHNOLOGIES FOR THE USE FOR CONNECTIONS IN AGRICULTURE IN RURAL REGIONS OF UKRAINE. 2024.

[17] M S Rahman, M H K Sujan. Clean energy transition in rural Bangladesh: Challenges in adoption and impact. Energy Sources, Part B Econ. Planning, Policy, 2024, 19. DOI: 10.1080/15567249.2024.2420338.

[18] K M A Islam, Z Hasan, T Tawfiq, et al. Bank becomes cashless: Determinants of acceptance of mobile banking (fintech) services among banking service users. Banks Bank Syst., 2024, 19: 30-39. DOI: 10.21511/bbs.19(2).2024.03.

[19] B Zengin. UNRAVELING THE NEXUS BETWEEN DIGITAL BANKING TRANSACTIONS AND BANK PROFITABILITY: INSIGHTS FROM TURKEY’S DEPOSIT BANKS. J. Financ. Stud., 2024, 9. DOI: 10.55654/JFS.2024.9.16.14.

[20] M Chandrakar. Telehealth and digital tools enhancing healthcare access in rural systems. Discov. Public Heal., 2024, 21. DOI: 10.1186/s12982-024-00271-1.

[21] L Tian, W Han, W Tian. Digital financial inclusion and residents’ health: evidence from rural China. Discov. Soc. Sci. Heal., 2024, 4. DOI: 10.1007/s44155-024-00103-2.

[22] D R R Devi, L I. IMPACT OF DIGITAL PAYMENT ADOPTION ON FINANCIAL LITERACY. 2024. DOI: 10.1729/Journal.38277.

[23] S Kunchaparthi, T Leelavati, M Sripathi. Transformative Trends in Digital Banking: Exploring e-Banking, Mobile Banking, Digital Payments, and Innovative Solutions. E-Financial Strategies forAdvancingSustainable Development, 2024: 169-182. DOI: 10.1007/978-3-031-67523-2_10.

[24] L Qin, Y Zhong, H Wang, et al. Machine Learning-Driven Digital Identity Verification for Fraud Prevention in Digital Payment Technologies. World J. Innov. Mod. Technol., 2024, 7: 1-7. DOI: 10.53469/wjimt.2024.07(03).01.

[25] M Tanha, M Amin, M Y Masum, et al. Cashless Mobile Financial Services: Rapid growing financial sector in Bangladesh’s Financial Industry. Ann. Manag. Organ. Res., 2024, 6: 107-125. DOI: 10.35912/amor.v6i2.2108.

[26] L Püchel, C-M Wellbrock, C Buschow. Where Technology and Content Fuse: Applying Technology Acceptance to the Usage of and Payment for Digital Journalism. Int. J. Innov. Technol. Manag., 2022, 20. DOI: 10.1142/S0219877023500062.

[27] J Xu, Q Yao, M Zhou. Exploring the Impact of Digital Inclusive Finance on Chinas Rural Areas from the Perspective of Digital Rural Construction. Adv. Econ. Manag. Polit. Sci., 2024, 107: 173-181. DOI: 10.54254/2754-1169/2024.GA18168.

[28] A Alarabiat. Continuous Use of Mobile Banking Applications: The Role of Process Virtualizability, Anthropomorphism and Virtual Process Failure Risk. Interdiscip. J. Inf., 2024, 19: 1-33. DOI: 10.28945/5261.

[29] A Williams. Trajectories for Engaging Rural Communities in Non-Governmental Organization Programmes for Sustainable Community Development in Rivers State. East Asian J. Multidiscip. Res., 2022, 1: 2747-2760. DOI: 10.55927/eajmr.v1i11.1623.

[30] J Bennett. Indigenous Pedagogies in Digital Learning: Evaluating the impact and efficacy of YarnPods - embedding Indigenous knowledges and perspectives through yarning podcasts. ASCILITE Publ., 2024: 136-138. DOI: 10.14742/apubs.2024.1232.

[31] Л Р Акбаева, Л С Боташева. Digital transformations of accounting in the field of cash transactions. Ind. Econ., 2024, : 94-97. DOI: 10.47576/2949-1886.2024.2.2.014.

[32] E Moore, N Schneidermann. Women who pay their own brideprice: reimagining provider masculinity through Uganda’s thriving wedding industry. J. R. Anthropol. Inst., 2024. DOI: 10.1111/1467-9655.14229.

[33] G Davies, L Mosaku, K Moneke, et al. AI-Enhanced Cultur-ally Sensitive Public Health Messaging: A Scoping Review. E-Health Telecommunica-tion Systems and Networks. E-Health Telecommun. Syst. Networks, 2024: 45-66, Jan. 2024, doi: 10.4236/etsn.2024.134004.

[34] S Noreen, I Khan, F Anjum, et al. MODERNITY AND CHANGING CULTURAL PATTERNS IN PAKISTAN. Humanit. Soc. Sci. Rev., 2021, 9: 344-349. DOI: 10.18510/hssr.2021.9335.

[35] H Chikri, M Kassou. FINANCIAL REVOLUTION: INNOVATION POWERED BY FINTECH AND ARTIFICIAL INTELLIGENCE. J. Theor. Appl. Inf. Technol., 2024, 102: 4145.

[36] Y Cui, Y He, X Xu, et al. Can cultural capital, cognitive ability, and economic capacity help rural older adults bridge the digital divide? Evidence from an empirical study. Front. Public Heal., 2024, 12. DOI: 10.3389/fpubh.2024.1393651.

[37] O Alao, E Alonge. Advancing financial inclusion through digital payment platforms in emerging markets. Financ. Account. Res. J., 2024, 6: 2028-2060. DOI: 10.51594/farj.v6i11.1696.

[38] Y Bhavanishankar, A Taqa. The Duality of Data Privacy: A Hacker’s Perspective and Protective Measures for Common People. 2023, 12: 2319-7471.

[39] S Wei, Z Wu, J Xu, et al. Security Risk Assessment and Risk-oriented Defense Resource Allocation for Cyber-physical Distribution Networks Against Coordinated Cyber Attacks. J. Mod. Power Syst. Clean Energy, 2024. DOI: 10.35833/MPCE.2024.000288.

[40] Y Nawaz, N Rehman. Strengthening Financial Institutions’ Data Security with Blockchain Technology and Zero Trust Security: A Comprehensive Cyber Defense Strategy. 2024. DOI: 10.13140/RG.2.2.21956.85127.

[41] P Khare. Understanding the Factors Affecting Trust and Security in Online Transactions for Maid Service Websites. INTERANTIONAL J. Sci. Res. Eng. Manag., 2024, 08: 1-5. DOI: 10.55041/IJSREM35107.

[42] Sushma, N Arora, J Kumar, et al. Digital Financial Inclusion: Evidence from India. 2024: 317-337. DOI: 10.1007/978-3-031-67523-2_19.

[43] A M Muzareba. USERS’ ASSESSMENTS OF BKASH AS A MOBILE FINANCIAL SERVICE (MFS) PROVIDER IN BANGLADESH. 2023, 44: 17-42.

[44] S M S Ali. Digital Payment for Rural India- Challenges and Opportunities. 2024, 3: 35-40.

[45] V Raj L, A Shanmugam, A K. Role of perceived countries’ advantages of cashless economy in behavioral intentions of using cashless transactions: an empirical analysis. J. Indian Bus. Res., 2021. DOI: 10.1108/JIBR-06-2020-0186.

[46] N Jahan, A Director. The Influence of Foreign Direct Investment on Bangladesh’s Economic Growth. 2024, 5: 16-25.

[47] A Gracious Kaazara, M Nancy, K Matovu. Digital Payments and Informal Sector Efficiency: A Case Study of Mobile Money Users in Wakiso. 2024, 3: 596-609.

[48] R Ennis, E Lee. Mindfulness- and Relationship-Based Interventions: Which Break is Better for Improving Classroom Behavior? Educ. Treat. Child., 2024. DOI: 10.1007/s43494-024-00128-x.

[49] N Eziamaka, T Odonkor, A Akinsulire. Pioneering digital innovation strategies to enhance financial inclusion and accessibility. Open Access Res. J. Eng. Technol., 2024, 7: 43-63. DOI: 10.53022/oarjet.2024.7.1.0029.

[50] K Slade. Driving Financial Inclusion Through Frugal Innovation to Achieve UN SDG Target 8.10. 2024: 61-72. DOI: 10.1007/978-3-031-68803-4_5.

[51] N Lodha. Disrupting Black Money in Indian Real Estate -The Power of Digital Bidding Systems. 2024.

[52] J M Rey Hipolito, J Galay- Limos. Analyzing the impact of online payments on business performance in San Jose, Occidental Mindoro. Int. J. Res. Stud. Manag., 2023, 11. DOI: 10.5861/ijrsm.2023.1111.

[53] G Wachira, A Njuguna. Enhancing Growth and Productivity Through Mobile Money Financial Technology Services: The Case of M-Pesa in Kenya. Int. J. Econ. Financ., 2023, 15: 91. DOI: 10.5539/ijef.v15n12p91.

[54] B M. Factors Affecting Customers Lifetime Value of Fintech Services. INTERANTIONAL J. Sci. Res. Eng. Manag., 2024, 08: 1-6. DOI: 10.55041/IJSREM36996.

[55] B Lim, P Kit Teng, N Wong. Consumer Satisfaction of Alipay as the Market Leader of Mobile Payment in China. Malaysian J. Consum. Fam. Econ., 2020, 23: 68-84.

[56] J Jusman, I Fauziah. Receptiveness of QRIS as a Digital Payment Among MSME in Palopo City. Interdiciplinary J. Hummanity, 2024, 3: 707-717. DOI: 10.58631/injurity.v3i10.1234.

[57] V Nawangwulan, R Renny. Perception of Transaction Ease, Security and Trust on Customer Satisfaction in Using BSI Mobile Banking to Generation Z Customers in Jabodetabek. J. Econ. Financ. Manag. Stud., 2024, 07. DOI: 10.47191/jefms/v7-i9-04.

[58] O Ikechukwu John, C Okechukwu. Cashless Policy and Manufacturing sector performance in Nigeria. J. Account. Financ. Manag., 2024, 10: 21+30. DOI: 10.56201/jafm.v10.no8.2024.pg21.39.

[59] M Narayanan, D Chandrasekaran. A Study on Green Banking Initiatives of Customer Awareness Level in Public Sector and Private Sector Banks with Special Reference to Madurai District. Asian J. Manag., 2024, 15: 27-230. DOI: 10.52711/2321-5763.2024.00035.

[60] K López, H M?ller. Prevalence of Autism in Scandinavian Countries (Denmark, Norway, Sweden), and Nordic Countries (Finland, Iceland, the Faroe Islands, and Greenland). Neuropsychiatr. Dis. Treat., 2024, 20: 1597-1612. DOI: 10.2147/NDT.S466081.

[61] M Lněni?ka, N Rizun, C Alexopoulos, et al. Government in the metaverse: Requirements and suitability for providing digital public services. Technol. Forecast. Soc. Change, 2024, 203: 123346. DOI: 10.1016/j.techfore.2024.123346.

[62] Hidayani. THE INFLUENCE OF DIGITAL FINANCIAL LITERACY, PERCEPTION OF BENEFITS, AND INTEREST ON STUDENTS’ HABIT IN CARRYING OUT DIGITAL PAYMENT TRANSACTIONS. MSJ Major. Sci. J., 2023, 1: 180-188. DOI: 10.61942/msj.v1i4.124.

[63] Glenton C, Paulsen E, Agarwal S, et al. Healthcare workers’ informal uses of mobile phones and other mobile devices to support their work: a qualitative evidence synthesis. Cochrane database Syst. Rev., 2024, 8: CD015705. DOI: 10.1002/14651858.CD015705.pub2.

[64] M Alzoraik, A Ateeq, S Ali, et al. Examining the Impact of Trust and Satisfaction on the Adoption of Online Banking. 2024: 541-549. DOI: 10.1007/978-3-031-71318-7_50.

[65] G. Kituyi, E. Abaho, D. Aguma, et al. Improving access to communication services by the unserved and underserved communities in Uganda through information and communication technologies. Univers. Access Inf. Soc., 2024. DOI: 10.1007/s10209-024-01153-8.

[66] E. Arinze. Exploring the Role of Wireless Networking in Uganda’s Socio-Economic Development: Deployment, Impact, and Challenges. INOSR Sci. Res., 2024, 11: 1-7. DOI: 10.59298/INOSRSR/2024/1.1.3170.

[67] C Madduri, G Niveditha, D Venkateswarlu. TRANSFORMING TRANSACTIONS: A COMPREHENSIVE ANALYSIS OF DIGITAL PAYMENT SYSTEMS IN INDIA FOR A CASHLESS ECONOMY. 2024.

[68] V Gupta, E Tomar. Exploring Self-Perceived Health Status And Self- Medication Patterns: Understanding Knowledge, Attitudes, And Practices Among Rural Residents In Lucknow. IOSR J. Dent. Med. Sci., 2024, 23: 52-58. DOI: 10.9790/0853-2308055258.

[69] Gopalan A, Shaw PA, Lim R, et al. Use of financial incentives and text message feedback to increase healthy food purchases in a grocery store cash back program: a randomized controlled trial. BMC Public Health, 2019, 19. DOI: 10.1186/s12889-019-6936-5.

[70] N Masri, D Khawaja. The Impact Of Cashless Payments On Smes’ Financial Performance In Mount Lebanon. IOSR J. Econ. Financ., 2024, 15: 41-47. DOI: 10.9790/5933-1505024147.