Bangladesh plans PayPal integration to boost SME market access

Bangladesh is moving to integrate international payment systems such as PayPal to expand global market access for small entrepreneurs and modernise the cottage and small industries sector through stronger digital connectivity, said Bangladesh Bank Governor Ahsan H Mansur.

"We have already removed regulatory barriers. SMEs should be able to receive payments seamlessly through platforms like PayPal," he said while addressing the Annual Conference and Workshop 2025 today at the Bangladesh Small and Cottage Industries Corporation (BSCIC) in Dhaka.

Citing global shifts, he highlighted the importance of linking international payment gateways to help local entrepreneurs reach global markets.

He stressed the urgent need to modernise and support small and cottage industries by strengthening supply chains, encouraging integration with larger firms, and building robust digital and sustainable platforms.

"Here, firms try to do everything on their own," he noted, attributing part of the challenge to tax complications and policy inconsistencies that hinder both vertical and horizontal integration.

On financing, he criticised the limited scope of BSCIC's loan disbursement.

"Only Tk 200–250 crore is being distributed. This should have been much higher," he said, pointing to weak distribution channels and inadequate institutional capacity.

He recommended partnering with microfinance institutions or specialised banks so that loans reach the intended SMEs.

The governor also called for a dynamic online marketplace for BSCIC entrepreneurs, proposing a professionally managed e-commerce platform to directly connect producers with buyers, eliminate middlemen, and ensure fair prices.

"It must be updated continuously and operated professionally. We must invest in quality IT personnel and infrastructure," he said.

Mansur further highlighted the need for stronger demand-side development, warning that increasing supply without corresponding market creation would create inefficiencies.

"Entrepreneurs will suffer if they can't sell. Market access must come first," he said.