Commission structure and its impact on agent/merchant performance – how the payment model incentivizes the distribution network in bKash Limited

Abstract

This internship report aims to examine the commission structure and its effect on the performance of agents and merchants of bKash Limited. The study was done with the help of practical experience gained during the internship period in the Commission Analysis Team of the Financial Control Department of the Finance and Accounts Division. The goal of the report is to explore the effects commission-based incentives have on the motivation, transaction activity, and performance of agents and merchants in the mobile financial services ecosystem. Both primary and secondary sources were collected, such as work observation, informal conversations with participants, company resources, and literature review. The results suggest that the commission structure has a significant impact on transaction volume, service prioritisation, and operational efficiency. Increased commissions increase the activity of agents and merchants, and a differential in incentives can lead to service imbalance and inconsistencies in performance. The report concludes that an effective and balanced commission structure is needed to ensure network performance, to enable digital financial inclusion, and to provide a competitive advantage in the mobile financial services industry.