All debit and credit cards issued by 46 banks that have so far joined the National Payment Switch Bangladesh (NPSB) will be accepted as a method of payment at all member point of sales (POS) terminals.

“Interbank electronic payments will get a further boost through allowing POS transactions among the banks,” said Atiur Rahman, governor of Bangladesh Bank, at the launching ceremony.

“NPSB will facilitate the expansion of the card-based payment networks substantially and promote e-commerce.” 

POS is the point at which a customer makes a payment through credit or a debit card to the merchant in exchange for goods or services.

The NPSB is now playing the role of a 'mother switch' and it will gradually connect all other switches owned or shared by different banks in Bangladesh.  When the country's 56 banks join the NPSB, an ATM, debit or credit card will be accepted by all teller machines and POS.

“Internet and mobile banking will also be brought under the NPSB soon,” Rahman said.

Bangladesh Bank introduced NPSB in December 2012 to facilitate interbank electronic payments originating from different channels like ATMs, POS, internet, mobile devices etc. Earlier, interbank ATM transactions have been brought under the national switch.

Currently, daily transactions among 46 banks through NPSB stand at Tk 12 crore, the governor added.

The inclusion of POS into the switch will increase interbank transactions significantly.