PayPal coming soon to connect small entrepreneurs to global markets: BB governor

Global payment service PayPal wants to begin operations in Bangladesh soon, in a move aiming to connect small entrepreneurs to international markets, Bangladesh Bank Governor Ahsan H Mansur said on Tuesday (2 December). 

Bite-Sized: What benefits can PayPal bring to Bangladesh's economy?

"The international digital payment platform PayPal wants to do business in Bangladesh. Through PayPal, our small entrepreneurs will be able to sell products and receive payments from international markets much more easily," he said at the Agro Award 2025 ceremony organised by Standard Chartered Bank and Channel i at the InterContinental Hotel in Dhaka.

He added that small entrepreneurs cannot follow the LC procedures through banks to sell small consignments. 

"Through this new international payment platform, they will be able to send products to various countries including Europe and America."

The governor noted that at present, due to the lack of such a platform, many people involved in outsourcing face difficulties in receiving their payments from international markets, and in many cases, they do not receive their payments at all.

At the Agro Award ceremony on 2 Dec/Courtesy

PayPal is a global digital payment service that allows users to send and receive money online, pay bills, and make international purchases. 

The platform securely links with a user's bank or card to complete transactions quickly. 

It offers buyer and seller protection and refund facilities. 

PayPal is widely used in more than 200 countries for freelancers, online businesses, and international payments.

At the event, Standard Chartered Bank and Channel i awarded eight individuals and three organisations for special contributions to agriculture. 

Winners were selected after evaluating more than 500 applications.

Mentioning issues surrounding cash transactions, the governor said they "are at the root of corruption in the country". 

"Wherever there is corruption, you will find cash transactions. Currently, around Tk20,000 crore is spent annually on cash handling. We want to gradually reduce cash transactions."

Regarding agricultural loans, he said, "Agricultural loans currently account for 2% of total loans in the country. But to develop the agricultural sector, this needs to be increased to 10%."

The central bank has a fund of Tk25,000 crore for SME loans, he said. However, this money is not being disbursed because banks lack the capacity. 

"But if there is will, much can be done. today's award winners have proven that."

Speaking about food grain production, he said, "In 1971, after independence, the country's food grain production was 1.3 crore tonnes. Now it has increased to nearly 4 crore tonnes. more than triple. 

"While the population has just a little more than doubled, productivity has risen over threefold. This achievement should not be underestimated."