PayPal set to enter Bangladesh market, says BB governor

Bangladesh Bank Governor Ahsan H Mansur on Tuesday (2 December) announced that global digital payment platform PayPal intends to start operations in Bangladesh shortly, enabling small entrepreneurs to access international markets more easily.

"PayPal wants to do business in Bangladesh. Through this platform, our small entrepreneurs will be able to sell products and receive payments from global markets with much greater convenience," he said while speaking at the Agro Award 2025 ceremony organised by Standard Chartered Bank and Channel i at InterContinental Hotel in Dhaka.

He pointed out that small entrepreneurs currently struggle to export minor consignments through formal banking channels due to complex letter of credit (LC) procedures.

"With this new international payment system, they will be able to ship goods to Europe, America and other countries without such hurdles," the governor added.

He further observed that the absence of such a platform creates significant difficulties for freelancers and outsourcing professionals in receiving foreign payments, with many failing to get their dues entirely.

At the same event, Standard Chartered Bank and Channel i honoured eight individuals and three organisations for outstanding contributions to agriculture, selected from over 500 applications.

Addressing cash transactions, Dr Mansur described them as "the root of corruption in the country", noting that approximately Tk20,000 crore is spent annually on cash handling alone. He stressed the need to reduce reliance on cash gradually.

On agricultural financing, he said farm loans currently constitute only 2 per cent of total lending and should rise to 10 per cent to support sector development.

He revealed that the central bank has a Tk25,000 crore fund earmarked for SME loans, but disbursement remains low due to limited banking capacity.

"Yet where there is will, much can be achieved. Today’s award recipients have demonstrated exactly that," he remarked.

Highlighting progress in food production, the governor said output has risen from 1.3 crore tonnes in 1971 to nearly 4 crore tonnes now – more than a threefold increase – while the population has little more than doubled over the same period.

"This is an achievement that must not be underestimated," he concluded.