BB opens market to Global Payment Giants

Bangladesh Bank (BB) has introduced a comprehensive regulatory framework for bank-mediated cross-border payments, paving the way for global payment platforms such as PayPal, Payoneer and Stripe to enter the country's financial system through partnerships with local banks.

The new framework marks one of the most significant reforms to Bangladesh's digital payments landscape in recent years, aiming to modernise cross-border transactions, support the country's rapidly growing freelancing and e-commerce sectors, and bring international payment practices under a regulated banking framework.

In a circular issued on Wednesday, the central bank's Foreign Exchange Policy Department authorised commercial banks designated as Authorised Dealers (ADs) to collaborate with foreign payment platforms, digital service providers, online payment gateway operators and other legitimate transaction solution providers, collectively termed Cross-Border Digital Payment Service Providers (CBDPSPs).

The move allows banks to offer international digital payment services through globally recognised payment networks, subject to Bangladesh Bank's approval and regulatory oversight.

Digital wallets introduced

At the heart of the new framework is the introduction of Digital Value Accounts (DVAs)—bank-linked digital wallets that can be issued to individuals and businesses for eligible cross-border transactions.

Each DVA must be linked to a master settlement account maintained by the partner bank, ensuring that all transactions remain under the banking system's supervision.

Banks will be required to monitor transactions in real time, maintain parallel accounting records and ensure that any unused balances remain under their direct control for reconciliation and customer protection.

Wider payment options

The framework significantly expands the range of permissible international digital transactions.

Individuals will be able to use the digital wallets for approved foreign exchange expenditures, including private, medical and official travel, visa fees, hotel bookings, membership subscriptions, information technology services and small-value online purchases of up to US$300 per transaction.

The facility will also be available against balances held in Export Retention Quota (ERQ) and Resident Foreign Currency Deposit (RFCD) accounts.

For businesses maintaining ERQ accounts, up to three authorised executives will be allowed to use Digital Value Accounts for eligible overseas business expenses.

Boost for freelancers and exporters

Industry participants expect the framework to provide a major boost to Bangladesh's expanding digital economy, particularly freelancers, exporters and e-commerce businesses that have long sought easier access to global payment platforms.

The new system is expected to simplify the receipt and repatriation of foreign earnings while reducing reliance on intermediary payment arrangements that many freelancers and digital entrepreneurs currently use.

Foreign tourists visiting Bangladesh will also be able to use the settlement system to make payments at local merchants, a measure expected to improve convenience for international visitors and encourage wider adoption of digital payments.

Strict regulatory safeguards

Bangladesh Bank said no bank will be permitted to launch cross-border digital payment services without prior acknowledgement from its Foreign Exchange Policy Department.

Banks must submit detailed information on their partnerships with foreign payment providers, technology integration, operational arrangements and cybersecurity systems before receiving approval.

They will also be required to comply fully with anti-money laundering (AML), combating the financing of terrorism (CFT), know-your-customer (KYC) and customer due diligence (CDD) regulations, while submitting regular transaction reports to the central bank.

Major reform for digital payments

The framework represents a significant expansion of Bangladesh's cross-border payment infrastructure.

Previously, banks were largely limited to using Online Payment Gateway Service Providers (OPGSPs) for inward remittances and a narrow range of international payment services.

The new rules establish a broader, bank-supervised ecosystem capable of supporting both inward and outward digital payments through internationally recognised payment platforms.

Bankers and market analysts said the reform aligns Bangladesh's payment infrastructure more closely with global standards and is expected to improve the ease of doing business, facilitate international trade in services and strengthen the country's digital economy.

The framework also lays the regulatory foundation for international payment companies, including PayPal and Payoneer, to formally expand their presence in Bangladesh by partnering with local banks, a development long sought by exporters, freelancers and technology businesses.