Is PayPal Available in Bangladesh?

PayPal, a widely recognized online payment system, is not fully available in Bangladesh for direct use by its citizens. While individuals and businesses in Bangladesh seek access for international transactions, the full suite of PayPal services, including sending and receiving payments, is not directly offered within the country. The absence of direct PayPal integration has led many to explore alternative financial solutions for cross-border transactions.

PayPal’s Presence in Bangladesh

PayPal has not officially launched its comprehensive services in Bangladesh. Despite ongoing public interest and discussions, a full-scale rollout has not materialized. This means Bangladeshi users cannot open and operate a standard PayPal account to send or receive funds directly.

Reasons for this absence involve regulatory differences and concerns regarding compliance with Bangladesh Bank’s foreign exchange regulations. Challenges also include aligning PayPal’s operational policies with local rules, particularly concerning money laundering prevention and the monitoring of outbound remittances. Bangladeshi regulations allow citizens to spend a maximum of $12,000 abroad annually, and tracking such transactions via PayPal has been deemed unfeasible.

A limited PayPal service, Xoom, has been available in Bangladesh primarily for receiving international remittances. This service allows individuals to receive money sent from PayPal users abroad into their Bangladeshi bank accounts. However, Xoom does not facilitate sending payments from Bangladesh or provide the full range of PayPal’s e-commerce and payment functionalities.

Impact on Bangladeshi Users

The unavailability of comprehensive PayPal services significantly affects various user groups in Bangladesh, particularly freelancers, online businesses, and those involved in international trade. Freelancers often encounter difficulties securing international clients who prefer or exclusively use PayPal for payments. This limitation can lead to lost opportunities, as some clients may opt for freelancers in countries where PayPal is readily available, hindering the growth of Bangladesh’s digital economy.

Businesses engaged in e-commerce or providing services to international customers also face hurdles. Without direct PayPal access, these entities must rely on alternative payment gateways, which might be less familiar to their global clientele, potentially impacting sales and customer convenience. Using workarounds or less direct payment methods can introduce complexities, higher transaction fees, and slower processing times. Furthermore, the inability for Bangladeshi users to open full PayPal accounts means they cannot easily send payments to foreign PayPal users, complicating purchases of international services or products.

This situation also results in a loss of potential foreign currency and tax revenue for Bangladesh. When freelancers or businesses register entities abroad to gain PayPal access, they may pay taxes and fees to foreign governments, diverting revenue that could otherwise contribute to the Bangladeshi economy. The absence of a widely accepted payment platform like PayPal can stifle digital entrepreneurship and limit Bangladesh’s participation in the global marketplace.

Alternative Solutions for International Payments

Given PayPal’s limited availability, individuals and businesses in Bangladesh rely on several alternative platforms for international payments. These solutions offer varying features, fee structures, and processing times to facilitate cross-border transactions.

Wise

Wise, formerly known as TransferWise, is a popular choice for sending and receiving international payments. It enables users to transfer funds to bank accounts, bKash, and Nagad accounts in Bangladesh, often at competitive exchange rates. Wise typically charges a fee, such as $1.17 USD plus 0.8% of the transaction amount for direct debit transfers, and funds usually arrive within 2-3 working days after conversion. This platform is favored by freelancers and individuals for its transparent fee structure and mid-market exchange rates.

Payoneer

Payoneer is another widely used platform, especially among freelancers and small businesses in Bangladesh. It functions as an e-wallet, allowing users to receive payments from international clients and marketplaces like Upwork and Fiverr. Payoneer offers features such as receiving payments in multiple currencies, withdrawing funds to local bank accounts, and providing a prepaid Mastercard for ATM withdrawals and online purchases. While transactions between Payoneer accounts are free and instant, other services may incur fees, including a $30 VAT for low yearly transactions, a $3 commission per withdrawal, and a $29.95 annual card usage fee.

Skrill

Skrill is available to residents in Bangladesh, providing services for payments, shopping, and money transfers. It operates as an e-wallet, allowing users to receive and transfer money quickly and pay for online products and services. Skrill is often used by freelancers and for online transactions, though P2P transfer services were limited as of October 2020. Skrill offers a secure and cost-effective solution for handling international transactions with competitive fees.

Traditional Bank Transfers

Traditional bank wire transfers through the SWIFT system remain an option for international remittances. Most Bangladeshi banks offer SWIFT services, with fees typically ranging from ৳500 to ৳2,000, excluding correspondent bank charges. While reliable, these transfers can be more expensive and slower compared to digital platforms, often taking several business days to process. Local payment gateways like aamarPay, SSLCOMMERZ, ShurjoPay, and Paykassma also facilitate domestic and some international payments.