BB clears way for PayPal, Payoneer, others
The Bangladesh Bank has introduced a bank-intermediated framework for cross-border digital payments, paving the way for local banks to partner with international payment platforms such as PayPal, Payoneer and similar service providers.
The initiative aims to modernise the country’s payment ecosystem, facilitate international trade in services and expand digital financial inclusion.
Under the framework, authorised dealer (AD) banks are allowed to process outward remittances through partnerships with foreign payment platforms and service providers, termed Cross-Border Digital Payment Service Providers (CDPSPs), according to a notification issued by the Bangladesh Bank (BB) on Wednesday.
A core feature of the framework is the introduction of Digital Value Accounts (DVAs) – digital wallets or stored-value accounts opened in the name of users.
These accounts will operate under a Master DVA maintained by the respective bank, ensuring regulatory oversight.
DVAs may be used for travel-related foreign exchange – including private, medical, and official purposes – as well as for payments such as membership fees, IT services, visa fees, and hotel bookings.
DVA users are allowed to make cross-border online payments up to a specified limit.
Foreign nationals and tourists visiting Bangladesh will also be able to make digital payments at local merchant points using this system.
Before rolling out these services, participating banks must submit detailed technical specifications, security infrastructure plans, and operational framework details to Bangladesh Bank’s Foreign Exchange Policy Department to secure prior approval.
Banks must also strictly adhere to all Anti-Money Laundering (AML), Know Your Customer (KYC), and Combating the Financing of Terrorism (CFT) regulations, alongside submitting regular transaction reports to the central bank.
Banks shall obtain prior regulatory acknowledgement from the central bank before launching such services, providing details of partnerships, system integration, and compliance arrangements.
The new framework marks a significant expansion of Bangladesh’s regulated digital payment infrastructure.
Previously, banks were primarily permitted to use online payment gateway service providers (OPGSPs) for inward remittance transactions.
Market observers believe the move could encourage global payment platforms such as PayPal, Payoneer and Stripe to enter the Bangladesh market, particularly to serve the country’s growing freelancing, e-commerce and cross-border services sectors.
