Published:  12:00 AM, 21 March 2017

Sonali Bank permitted to PayPal service

Bangladesh Bank gives permission to state-owned Sonali Bank to take necessary step to bring PayPal's operation in Bangladesh. Foreign Exchange Policy Department of  Bangladesh Bank issued the order on Monday to make the global online payment system PayPal available in Bnagladesh.

Md Nawab Hossen, principal officer of Foreign Remittance Management Division of Sonali Bank, said, "We have got the permission to negotiate with PayPal. We will now take necessary steps including signing of formal agreement with the PayPal, so that they launch their service in Bangladesh,"

He said, "Sonali Bank now will sign agreement with PayPal soon after opening a legal channel for transaction. "After signing the agreement, we will work to develop the software and its integration with PayPal and the process will be completed shortly," he added.

"Good news may come soon," he said further. If the service launced, it will help people and businesses  transfer funds, including transfer of remittances, electronically, without any hassle. "As Bangladesh facing many difficulties in receiving remittance earned through outsourcing, the new contract with PayPal will make the remittance inflow easier and faster," said Nawab Hossen. Sources informed that a team of PayPal officials made a trip last year. They underwent several meetings with government  and other associated bodies to formulate the operating policies of PayPal in Bangladesh. 

The source also noted that after discussion between both parties a draft agreement was made. That document was sent for approval to the San Jose HQs of PayPal. Very recently PayPal gave green light to the draft agreement. The source also confirmed that an announcement from the either side is due soon.

State Minister for ICT Division Zunaid Ahmed Palak on July 15, 2015, posted his Facebook status saying, "We had a very effective meeting with the vice-president of PayPal today in San Jose, California. We explained them in detail about Bangladesh Government's policies and regulatory reforms and business opportunities for PayPal.

"They have agreed to launch Xoom's operations in Bangladesh within this quarter. They [PayPal] will also internally discuss on how they can prioritise 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." In 2011 Bangladesh Association of Software and Information Services (BASIS) took the initiative to bring PayPal and they tried in different ways to implement  service in Bangladesh but failed.

In 2013 IT Adviser to the Prime Minister Sajib Wazed Joy said PayPal will be introduced that year while he was speaking at the country's first Digital World Fair. Finance Minister AMA Muhith said the same in April of the same year. Former Governor of Bangladesh Bank Dr Atiyur Rahman several times said that PayPal was coming to Bnagladesh. PayPal's delegations visited Bangladesh that time and at the end of the year they confirmed that they were not coming in Bnagladesh.

PayPal Holdings, Inc is an American company operating a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders. PayPal is one of the world's largest Internet payment companies. The company operates as a payment processor for online vendors, auction sites and other commercial users, for which it charges a fee.

In 2014, PayPal moved $228 billion in 30 currencies across more than 190 nations, generating a total revenue of $7.9 billion (44% of eBay's total profits). The same year, eBay announced plans to spin-off PayPal into an independent company by mid-2015 and this was completed on July 18, 2015. On July 20, 2015, PayPal had its second IPO, which valued the company at $46.6 billion.

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