The Bangladesh Bank (BB) has issued a guideline allowing non-bank entities to provide electronic payment services to the customers of schedule banks and others.
Such service will fall under the PSO (Payment System Operator) jurisdiction and intended firms will require obtaining separate license from the Bangladesh Bank (BB), according to a BB notification issued on Monday.
“We need to include new merchants into the electronic payments network, involvement of non-bank entities to spread ATM (Automated Teller Machine) as well as POS (Point of Sales) services across the country,” a BB senior official told the FE while explaining the main objective of the new initiative.
He also said the initiative will also help go for a cashless society in future.
These new entities will deploy, own and operate ATMs and/or acquire merchants to serve the customers of schedule banks or mobile financial services (MFSs) or payment system providers (PSPs), according to the guideline.
These private sector non-bank operators will be termed White Label ATM and/or Merchant Acquirer (WLAMA).