Talks underway to invite PayPal to launch operation

Khairul Islam | Published: July 15, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

Bangladesh is considering inviting the American internet-based payment gateway PayPal to the country to ensure smooth and secured online financial transaction, sources said.
They said the government has launched a series of talks with the global online payment gateway operator in this connection.
"A meeting between a visiting Bangladeshi team and PayPal high ups will be held today (Tuesday) in the USA," a senior official with the ICT division told the FE.
PayPal is the way to pay and get paid online. The service allows a person to pay in whatever way he or she prefers, including through credit cards, bank accounts, PayPal Smart Connect or account balances without sharing financial information.
The official said state minister for ICT Zunaid Ahmed Palak and ICT secretary Shyam Sundar Sikder are now in the USA to attend the meeting to be held at Silicon Valley.
Besides, additional secretary and executive director of the Bangladesh Computer Council SM Ashraful Islam, president of the Bangladesh Association of Software and Information Services (BASIS) Shameem Ahsan, are also a member of the visiting team.
BASIS executive director Sami Ahmed said the country needs a "credible and smooth" online payment system to seize the digital opportunities.
Around 0.6 million IT professionals are working in Bangladesh making the country a potential destination for outsourcing by the global IT firms, Mr Ahmed said adding that they need a credible and smooth payment system.
He said the IT sector is growing rapidly contributing to the national economy.
Last year, Bangladesh exported around Tk 2.5 billion worth software, he said, adding that the country needs more policy support in this connection.
He said many buyers prefer PayPal as the gateway for money transfer as it offers smooth and secured payment system. "Because of not having the payment gateway, some buyers might prefer to do their outsourcing from other countries, where such system is available," Mr Ahmed said.
Most of the Bangladeshi freelancers work for the US companies, and these foreign buyers prefer PayPal for payment as its service is more convenient and it charges lower than many competing agencies.
PayPal has over 162 million accounts worldwide available in 190 markets and 24 currencies around the world, PayPal enables global ecommerce by making payments possible across different locations, currencies, and languages.
Terming the initiative good, IT policy analyst Mustafa Jabbar said the government should identify the existing barriers instead of holding meeting and meeting.
He, however, cautioned the government against potential capital flight, saying that it should remain aware of the company's terms and conditions for operating in Bangladesh.
"The government should take all possible sides including capital flight into consideration", Mr Jabbar said adding that Paypal isn't mandatory for the country.
"It has become a psychological problem for some people in Bangladesh that PayPal is a must," Mr Jabbar said adding that currently they are doing global online transaction without PayPal.
At the moment, there are some intermediary services available in the country for online payment through which freelancers get money, but at higher costs, which deter many freelancers from working.
Â Â Â khairulislamdu@gmail.com