Robi Axiata PLC has announced that its fully owned subsidiary, SmartPay Limited, has received a No Objection Certificate (NOC) from Bangladesh Bank to operate as a Payment Service Provider (PSP).
SmartPay is focused on providing fintech-driven electronic payment services, including bill payments and other related services, the company said in its disclosure at the Dhaka Stock Exchange on Tuesday.
With the NOC from Bangladesh Bank, SmartPay Limited is now authorised to offer payment services in Bangladesh.
On Monday, Bangladesh Bank made the participation of all banks, mobile financial services (MFS), and PSPs in the interoperability through the National Payment Switch Bangladesh (NPSB) mandatory, effective from November 1.
The move aims to boost the country’s cashless journey through interoperability, which allows money to flow from accounts at any of the three sectors to others. Banks, MFS, or PSPs may charge customers up to a certain percentage against the sent sum. Receiving money will remain free of cost.
Banks can charge their customers up to Tk1.5, including value-added tax, for sending every Tk1,000 using interoperability, while PSPs can charge up to Tk2 per thousand and MFS providers up to Tk8.5.
Analysts said this will help boost transactions through PSPs as the wallet balance can be transferred to bank, MFS, or other PSP accounts.
Unlike the cash-out facility in MFS, PSPs offer electronic payment services, which experts believe are crucial for building a cashless economy. Bangladesh spends Tk20,000 annually to print banknotes, while the cash-based economy is less traceable for tax purposes.
Banglalink, the third-largest mobile operator, is also looking to enter the PSP business.
Industry experts said PSPs have the potential to trigger the next wave of Bangladesh’s fintech growth, following the past decade of the MFS revolution.
Bkash, the top MFS, has 82 million customers, while 9 PSP license holders, along with several others operating with provisional licenses, have yet to onboard 400,000 customers combined.
However, with significant customer bases in their core businesses, companies like Robi, Banglalink, Pathao, Sheba, and Chaldal are expected to break through, analysts believe.
Samadhan Services Limited, a concern of Grameenphone’s parent Grameen Telecom, also received a Bangladesh Bank NOC for PSP operations earlier this year.
