In a significant move towards digital financial inclusion in Bangladesh's agricultural sector, iFarmer, in partnership with Visa and United Commercial Bank (UCB), announced the launch of an innovative Cashless Farmer Card program. The card product is designed by iFarmer while participating in the VISA Accelerator Program (VAP). iFarmer is the 2024 winner of VAP from Bangladesh. The inaugural distribution ceremony took place on Thursday in Chutipura, Damurhuda Upazila of Chuadanga district, marking a new era in agricultural financial services.
The collaborative initiative aims to empower farmers by facilitating cashless transactions for agricultural inputs, representing a significant step towards modernizing agricultural commerce in Bangladesh. Farmers can use the card for any card transactions, ATM withdrawals, and purchases from iFarmer Centers. Additionally, the program takes POS machines to rural retailers and agri-input sellers, allowing them to process digital transactions for the first time.
The program specifically targets registered farmers under iFarmer's network, providing them with a sophisticated financial tool designed to meet their unique needs.
The newly introduced iFarmer Visa Card offers multiple advantages to farmer communities:
Strategic Impact and Vision
"This partnership between iFarmer, Visa, and United Commercial Bank represents our commitment to revolutionizing agricultural operations for marginalized farmers," said Muhaiminul Hossain, Head of Product Management at iFarmer. "We have been working to improve access to finance for farmers in Bangladesh. Now, by introducing digital financial services to the agricultural sector, we're not just providing a payment solution; we're creating a pathway for comprehensive financial inclusion, and to include the unbanked farmers in the formal financial ecosystems and economic growth."
The initiative demonstrates the potential of financial technology to transform traditional agricultural practices. The program is expected to drive digital financial inclusion in rural communities, modernize agricultural payment systems, support sustainable economic growth in the agricultural sector, and enhance transparency in agricultural transactions
Looking Ahead
This collaborative effort brings together iFarmer's agricultural expertise and farmer network, Visa's global payment technology infrastructure, and United Commercial Bank's strong banking presence and financial services. The partnership demonstrates a shared commitment to supporting Bangladesh's agricultural sector through innovative financial solutions.
iFarmer says the launch in Damurhuda Upazila marks the beginning of a planned expansion across Bangladesh, with the partners committed to extending these digital financial services to more farming communities nationwide.
Access to finance remains a major challenge for smallholder farmers in Bangladesh. iFarmer started in 2018 with an innovative model to address this challenge by connecting farmers first with retail and later with institutional investors. The company has since expanded into several other verticals, including supply chain, agricultural inputs, and farm machinery, evolving into a full-stack agri-tech player in Bangladesh.
In many ways, iFarmer has been working to build an ecosystem around agriculture that connects everything from access to capital to inputs, information, and markets with an ambition to empower farmers. The company has achieved remarkable success, demonstrating the viability of its integrated approach. With the launch of its Cashless Farmer Card program, iFarmer is poised to strengthen its ecosystem further and potentially transform financial inclusion for Bangladesh's agricultural sector.
