PayPal arrives in Bangladesh

Written By: Mustafa Mahmud HassanBangladeshi freelancers have been facing difficulty in receiving remittance earned throughoutsourcing. To solve this problem, State-owned Sonali Bank has signed a memorandum ofunderstanding (MoU) with PayPal, a global online payment system.
PayPal offers individuals and businesses to transfer funds electronically. An individual firstneeds to open a PayPal account with a valid email address because it is an online service. Theambitious PayPal user would also need a valid credit card or a bank account linked with PayPalto use its services. PayPal earns money by charging transaction fees mainly from businessaccounts, charging to a payment’s recipient. Although most transactions are free, merchants paya 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.Read More: Importance of PayPal in BangladeshDider Md Abdur Rob, acting managing director of Sonali Bank said, “The MoU was signed withan aim to promote e-commerce in Bangladesh.” He added “We signed the MoU a month ago andsent it to PayPal. On Wednesday, a local representative of PayPal informed us that the US-basedcompany 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 asBangladesh had been trying to set a contract with PayPal for a long time.” “Bangladesh has beenfacing difficulty in receiving remittance earned through outsourcing but the new contract withPayPal 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 regulatoryreforms and business opportunities for PayPal.” Zunaid Ahmed Palak said in a Facebook statuson July 15 last year. He added, “PayPal has agreed to launch Xoom’s operations in Bangladeshwithin this quarter. They [PayPal] will also internally discuss on how they can prioritize andlaunch PayPal in Bangladesh and let us know if they need any further support from ourgovernment. 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 inBangladesh 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 MexicoIn July 2015.
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