Good News for PayPal: Bangladesh Clears the Way for Service Launch

Bangladesh Bank has taken a significant step toward enabling international digital payment services, paving the way for platforms such as PayPal to operate in the country through local banking partners.

In a circular issued on Wednesday (July 29), the central bank introduced a new bank-intermediary framework, allowing commercial banks to partner with foreign digital payment service providers, online payment gateways, digital platforms, and other licensed international payment solution providers.

Under the new guidelines, banks will be permitted to offer customers Digital Value Accounts (DVAs)—digital wallets or stored-value accounts linked to a bank-controlled master settlement account. Banks will be required to maintain real-time transaction monitoring, separate accounting records, and strict safeguards to ensure transparency and security.

The framework will allow individuals, businesses, and freelancers to make a wide range of foreign currency transactions. Customers will be able to use the digital wallets for approved travel expenses, international online purchases, membership fees, information technology-related payments, visa processing fees, and hotel bookings. Online purchases will be capped at US$300 per transaction.

The initiative is also expected to benefit exporters and freelancers. Digital Value Accounts may be linked to Export Retention Quota (ERQ) and Resident Foreign Currency Deposit (RFCD) accounts, making it easier for users to receive and manage foreign earnings. Eligible businesses will also be able to authorize up to three senior officials to use the facility for business-related expenses.

Foreign tourists visiting Bangladesh will also be able to make digital payments at participating merchant outlets under the new framework.

Before launching the service, banks must obtain prior approval from Bangladesh Bank by demonstrating their technical capability, cybersecurity infrastructure, and operational readiness. They will also be required to comply with anti-money laundering (AML), Know Your Customer (KYC), and counter-terrorism financing regulations, while submitting regular transaction reports to the central bank.