Highlights:
- BB introduces framework for cross-border digital payments
- Banks can partner with platforms like PayPal and Payoneer
- Digital Value Accounts to support overseas online payments
- Move aims to boost digital finance and service exports
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 is aimed at modernising the country’s payment ecosystem, expanding digital financial inclusion and supporting the growing trade in services.
In a circular issued today (29 July), the central bank outlined guidelines allowing authorised dealer (AD) banks to process outward remittances through partnerships with foreign payment platforms and service providers, referred to as cross-border digital payment service providers (CDPSPs).
According to the central bank, a key feature of the framework is the introduction of digital value accounts (DVAS), digital wallets or stored-value accounts that will be opened in the name of users. These accounts will operate under a Master DVA maintained by the respective bank, ensuring regulatory oversight.
Under the framework, DVAs may be used for travel-related foreign exchange, including private, medical and official travel, as well as for payments such as visa fees, hotel bookings, membership fees and payments for IT-enabled services.
Users will also be able to make cross-border online payments within limits prescribed by Bangladesh Bank.
The facility may also be extended against balances held in export retention quota (ERQ) and resident foreign currency deposit (RFCD) accounts.
Before launching such services, banks must obtain prior regulatory acknowledgement from Bangladesh Bank by submitting details of their partnerships, system integration and compliance arrangements.
The new framework marks a significant expansion of the country’s regulated digital payment infrastructure. Previously, banks were mainly permitted to use online payment gateway service providers (OPGSPs) for inward remittance transactions.
Market observers believe the initiative could encourage global payment platforms such as PayPal, Payoneer and Stripe to explore opportunities in Bangladesh, particularly in the freelancing, e-commerce and cross-border services sectors.
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