Dhaka, July 12 -- Bangladesh Mobile Phone Consumers' Association (BMPCA) on Sunday demanded withdrawal of the existing service charge on Bangla QR transactions, saying the fee is discouraging small and medium merchants from adopting digital payments and undermining the government's cashless Bangladesh initiative.

In a statement, the association said Bangla QR is a key vehicle for achieving the government's declared goal of building a cashless and smart Bangladesh, but the existing Merchant Discount Rate (MDR) is proving a major barrier for small and medium businesses, many of whom remain reluctant to accept QR payments as a result.

BMPCA said Bangladesh currently charges around 1 percent, including VAT, as merchant fee on Bangla QR tran...