FinTech gets BB nod to provide e-wallet service

Bangladesh Bank has issued a new license to Recursion FinTech Ltd, a private firm, to operate as a payment service provider (PSP) to provide e-wallet services in the country.

With this new one, the total number of licensed PSP has risen to three. The existing PSPs are -- iPay Systems Ltd and D Money Bangladesh Ltd.

A circular issued Thursday (June 4) by Bangladesh Bank's Payment System Department (PSD) said the license was issued to the Recursion FinTech Ltd under “Bangladesh Payment and Settlement Systems Regulation 2014” with certain conditions.  

PSPs received a license from the central bank to facilitate payments or payment processes directly like e-wallet and mobile wallet services to customers and to settle their transactions through a scheduled bank or financial institution.

The PSPs provide an e-wallet solution in which a user can store his/her money for any future transaction or purchase. This platform enables anyone to make any kind of a transaction with the help of their mobile phone or website without carrying cash or Credit/Debit Card.

Taking license from Bangladesh Bank, some companies operate as payment service operators (PSO) as well for payment activities between or among participants where the principal participant must be a scheduled bank or financial institution.

Bangladesh Bank in March this year asked all scheduled banks not to provide any banking services or transactions facility to unlicensed payment service providers (PSP) and payment system operators (PSO).