Summary
Bangladesh's central bank has granted telecom operator Banglalink a Payment Service Provider (PSP) licence, paving the way for the company to enter the country's digital payments market with its new service, Mukto Pay. The licence was issued on August 11. Mukto Pay, a fully owned Banglalink service, will offer a range of digital payment solutions, including money transfers, merchant and e-commerce payments, utility and government bill payments, salaries and other disbursements, as well as other services approved by Bangladesh Bank.
Key Facts
- Bangladesh Bank granted Banglalink a PSP licence on August 11
- Mukto Pay is a fully owned Banglalink service
- Will offer money transfers, merchant and e-commerce payments, utility and government bill payments, salaries and disbursements
- Aims to serve individuals, micro-merchants and small businesses that remain unbanked or underserved
- Will use Banglalink's nationwide connectivity, customer base and digital ecosystem
- Part of parent company VEON's strategy to invest in digital financial services in Bangladesh
- Marks Banglalink's transition from a telecommunications company into a digital operator
- CEO Johan Buse: greater financial inclusion and a digital ecosystem are essential for Bangladesh's cashless society and trillion-dollar economy ambitions
Why It Matters
Banglalink's PSP licence marks another step in the convergence of telecommunications and financial services, as telecom operators leverage their nationwide connectivity and customer bases to expand digital financial inclusion. By targeting unbanked and underserved populations, Mukto Pay could significantly expand access to digital payments in Bangladesh, supporting the country's shift toward a cashless economy. The move reflects a broader global trend of telecom operators entering financial services, particularly in emerging markets where mobile penetration exceeds traditional banking access. For the fintech sector, the development underscores the competitive dynamics of digital payments in South Asia and the strategic importance of telecom-led financial inclusion models.