Bangladesh’s state-owned Sonali Bank has got approval from Bangladesh Bank to start the online money-transfer services with PayPal. The approval has been given to Sonali Bank by the Foreign Exchange Policy Department of Bangladesh Bank, the central bank of the country.
“We just received permission. Now we will go forward with necessary procedures including the signing of the formal agreement with the PayPal so that the service comes into operation soon,” an officer of the Foreign Remittance Management Division of Sonali Bank told reporters.
“Sonali Bank will now sign an agreement with PayPal soon after opening a legal channel for the transaction,” the bank official added.
A branch of Sonali Bank in Dhaka, Bangladesh
The service will help people and businesses transfer funds, including the transfer of remittances, electronically, without any hassle.
PayPal allows individuals and businesses to transfer funds electronically. As it is an online service, an individual first needs to open a PayPal account with a valid email address. The aspiring PayPal user would also need a valid credit card or a bank account linked with PayPal to avail its services.
Bangladesh has been facing difficulty in receiving remittance earned through outsourcing but the new contract with PayPal will make the inflow of remittance easier and faster, sources said.
PayPal makes 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. However, it does not charge any fees to send money. The service is very popular among online shoppers and outsourcing experts.