Bangladesh Bank has introduced a bank-intermediated framework for cross-border digital payments, allowing local banks to partner with global payment platforms such as PayPal and Payoneer to facilitate regulated international transactions.
Under the framework, authorised dealer (AD) banks will be allowed to process cross-border digital payments through partnerships with foreign payment platforms and service providers, termed Cross-Border Digital Payment Service Providers (CDPSPs), according to a notification issued by Bangladesh Bank (BB) on Wednesday.
"We have issued the framework to facilitate the entry of international payment platforms such as PayPal, Payoneer and other similar service providers into Bangladesh through partnerships with local banks," a senior BB official told The Financial Express, explaining the primary objective of the new framework.
He said the payment platforms would now be allowed to facilitate both inward and outward remittances in line with the latest notification.
Under the new guidelines, users will be able to make low-value international online payments of up to US$300 per transaction through mobile applications, the central bank official said.
A key feature of the framework is the introduction of Digital Value Accounts (DVAs) - digital wallets or stored-value accounts opened in the names 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 transactions, including private, medical and official travel, as well as payments for membership fees, IT services, visa fees and hotel bookings. DVA users will be allowed to make cross-border online payments up to the prescribed limit.
The facility may also be extended against balances held in Export Retention Quota (ERQ) and Resident Foreign Currency Deposit (RFCD) accounts.
Banks must obtain prior regulatory acknowledgement from Bangladesh Bank before launching such services, providing details of their partnerships, system integration and compliance arrangements.
The initiative marks a significant step towards integrating digital payment channels into the country's regulated financial system.
Previously, banks were permitted to use Online Payment Gateway Service Providers (OPGSPs) primarily for inward remittances.
Market observers believe the move could encourage global payment platforms such as PayPal and Stripe to explore opportunities in the Bangladesh market, particularly in freelancing, e-commerce and cross-border trade in services.
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