Tuesday, July 19, 2016

PayPal arrives in Bangladesh

Written By: Mustafa Mahmud Hassan
Bangladeshi freelancers have been facing difficulty in receiving remittance earned through
outsourcing. To solve this problem, State-owned Sonali Bank has signed a memorandum of
understanding (MoU) with PayPal, a global online payment system.

PayPal offers individuals and businesses to transfer funds electronically. An individual first
needs to open a PayPal account with a valid email address because it is an online service. The
ambitious PayPal user would also need a valid credit card or a bank account linked with PayPal
to use its services. PayPal earns money by charging transaction fees mainly from business
accounts, charging to a payment’s recipient. Although most transactions are free, merchants pay
a fee for each transaction. The fee is usually thirty cents plus a 1.9% to 2.9% surcharge fee,
depending on the special surcharge formula they use. However, there are no fees to send money.
Dider Md Abdur Rob, acting managing director of Sonali Bank said, “The MoU was signed with
an aim to promote e-commerce in Bangladesh.” He added “We signed the MoU a month ago and
sent it to PayPal. On Wednesday, a local representative of PayPal informed us that the US-based
company has signed the deed.” He further added, “Zunaid Ahmed Palak, state minister for ICT,
held an emergency meeting with Sonali Bank over the progress of the MoU signing as
Bangladesh had been trying to set a contract with PayPal for a long time.” “Bangladesh has been
facing difficulty in receiving remittance earned through outsourcing but the new contract with
PayPal will make the remittance inflow easier and faster.” Didar said.

“We had a very effective meeting with the vice-president of PayPal today in San Jose,
California. We explained them in details about Bangladesh Government’s policies and regulatory
reforms and business opportunities for PayPal.” Zunaid Ahmed Palak said in a Facebook status
on July 15 last year. He added, “PayPal has agreed to launch Xoom’s operations in Bangladesh
within this quarter. They [PayPal] will also internally discuss on how they can prioritize and
launch PayPal in Bangladesh and let us know if they need any further support from our
government. We will continue our persuasion to bring PayPal in Bangladesh sooner than later.”
After the meeting with Palak, PayPal said that they would decide about their operating in
Bangladesh after performing an internal evaluation and assessment of the business potential,
sources in the ICT sector said.

PayPal acquired Xoom to expand its business in emerging markets like China, India and Mexico
In July 2015.