Nagad in Bangladesh: how the payment service works
About the Nagad service
Nagad is one of the most popular payment services in Bangladesh. The Nagad payment service was launched by Third Wave Technologies Limited (TWTL). Nagad enables everyday payments, money transfers, bill payments, and ATM cash deposits and withdrawals.
The popularity of the Nagad digital wallet is driven by the growing demand for cashless payments in Bangladesh, where cash transactions still continue to dominate. The Nagad payment service has more than 90 million users, the majority of whom are small business owners.
Account in the Nagad payment service
To open a Bangladeshi taka account on the Nagad payment service, a National Identity Document (NID) is required — a special card with a microchip.
To open an account, you need to install the Nagad mobile app, scan your NID, and enter the required registration data. Next, the app will ask you to take a selfie to verify your identity and set a four-digit PIN code to protect the account from unauthorized access.
Top-up and withdrawal of funds
You can top up an account in the Nagad payment service in several ways:
- Using a Visa or Mastercard credit or debit card;
- In cash through ATMs;
- By bank transfer. The bank must be included in a special list of approved banks, which includes institutions such as NRB Bank, Midland Bank, The City Bank Limited, and others. The full list of available banks can be found on the official Nagad website.
- By mobile phone payment;
- Through third-party payment systems that support Bangladeshi taka transfers.
To top up an account, you need to log in to the Nagad app, choose a funding method, enter the details and the top-up amount, and then confirm the payment with a PIN code.
Withdrawals from a Nagad account can be made through the same methods. Before using the payment service, note that payment updates may take up to 3 business days.
Other available operations in Nagad
- Payment for mobile services and home internet.
- Payments in retail and online stores;
- Payment of utility bills, land tax, internet services, and insurance policies.
Nagad limits and fees
The limits for topping up an account in Nagad depend on the chosen funding method:
- Up to 15–50 times per day for a total amount of 50,000–1,000,000 Bangladeshi taka;
- Up to 100–1,500 times per month for a total amount of up to 200,000–5,000,000 Bangladeshi taka.
The Nagad payment service charges a fee for both outgoing and incoming transfers. The minimum fee is 10 Bangladeshi taka per transfer amount, and the maximum is 265,000. The most expensive operations are cash deposits and withdrawals, as well as top-ups from a bank account — for these, the minimum fee is 50 Bangladeshi taka.
Features of the Nagad payment service
The Nagad app supports automatic bill issuance, making it popular among business owners. Nagad's advantages include fast payments and transfers, a wide range of payment methods, and a simplified refund process.
It should be noted that the Nagad service is primarily focused on the domestic Bangladeshi market and is intended primarily for payments and transfers in Bangladeshi taka. For international users, the service's functionality is significantly limited.
Nagad also does not provide all the features business owners need within the app, which is why entrepreneurs are forced to resort to additional financial tools.