Banglalink secures licence to launch digital payment services
It will be able to process digital payments, but can’t hold deposits like a bank or an MFS, such as bKash
Banglalink has received the No Objection Certificate (NOC) from the Bangladesh Bank on Wednesday to commence operations as a Payment Service Provider or PSP, the company said in a statement.
Banglalink can now officially operate as a PSP, allowing it to offer digital payment services, but not hold customer deposits like a bank or MFS, such as bKash and Nagad.
Bangladesh Bank spokesperson Arif Hossain Khan confirmed the matter to TBS, saying that the central bank has recently issued an NOC to Banglalink for becoming a Payment Service Provider (PSP). After finalising their technical infrastructure, the Bangladesh Bank will conduct an inspection and issue the final license.
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The telecom operator will now be able to act as a payment processor, enabling money transfers, merchant payments, utility/government payments and salary disbursements, etc.
Industry insiders say now Banglalink will be in direct competition with bKash, Nagad, Rocket and Internet banking apps.
Banglalink, a company fully owned by VEON, a global digital operator, considers this approval an important step toward expanding digital financial inclusion and strengthening the foundation for a cashless society.
Johan Buse, CEO of Banglalink, said, "With Banglalink's nationwide reach and VEON's global capabilities, we are shaping a secure and inclusive digital payment ecosystem for Bangladesh. This approval reinforces our belief that simple, safe and accessible digital financial services should be available to everyone."
"Guided by our DO1440 strategy of enriching every minute of people's lives, we aim to ensure essential digital and financial services are always within reach. As a people-first company that places care at the heart of every decision, Banglalink will continue driving meaningful digital innovation that supports everyday life, empowers communities and accelerates Bangladesh's journey toward a connected and future-ready digital economy," he added.
The company said that with this development, millions of users will benefit from safer, faster and more convenient digital financial services integrated into their mobile devices. The approval also enables the rollout of next-generation digital payment solutions across the country.
At launch, customers will be able to access instant money transfers, remittance services, utility and government bill payments, e-commerce and merchant transactions, salary and disbursement services, as well as emerging financial solutions such as micro-savings and insurance premium payments, it said.
Banglalink said it is now finalising preparations for the commercial rollout of its digital payment services in close coordination with Bangladesh Bank and partner institutions.
