Bangladesh Bank has granted NEO PSP Limited, a subsidiary of telecom operator Banglalink Digital Communications, a licence to operate as a Payment Service Provider (PSP), bringing the number of licensed PSP and e-wallet operators in Bangladesh to 10.
The licence was issued on August 11 under the Payment and Settlement Systems Act, 2024, according to a notification from the central bank.
NEO PSP will now be permitted to provide payment-related services in Bangladesh, subject to applicable laws, regulations and the specific conditions prescribed by Bangladesh Bank.
The move brings a telecom-linked company directly into Bangladesh’s regulated PSP ecosystem as the country’s digital payments market continues to develop.
NEO PSP becomes Bangladesh’s tenth licensed provider
With the approval of NEO PSP, Bangladesh now has 10 companies licensed to operate as payment service providers or e-wallet operators.
The other nine are iPay Systems Ltd, D Money Bangladesh Ltd, Recursion FinTech Ltd, Green & Red Technologies Ltd, Progoti Systems Ltd, ABG Technologies Limited, Digital Payments Limited, Sheba Fintech Limited and Shamadhan Services Limited.
The addition expands the number of regulated providers able to compete within Bangladesh’s growing digital payments ecosystem.
Licence issued under 2024 payments law
Bangladesh Bank granted the licence under the Payment and Settlement Systems Act, 2024.
NEO PSP will be required to operate according to the country’s applicable payment laws and regulations as well as the conditions contained in the central bank’s licensing letter.
The source does not specify the individual payment products NEO PSP plans to launch, its commercial rollout timetable or the detailed conditions attached to the licence.
Banglalink gains regulated entry into payments
NEO PSP’s ownership makes the approval particularly notable for Bangladesh’s telecommunications sector.
As a subsidiary of Banglalink Digital Communications, the company creates a regulated route for the telecom group to participate in payment services.
Across emerging digital economies, telecom companies can bring substantial customer reach and established digital distribution channels when expanding into adjacent financial services. The precise model Banglalink intends to pursue through NEO PSP, however, has not yet been detailed in the announcement.
Competition expands in Bangladesh’s e-wallet market
The arrival of a tenth licensed PSP broadens Bangladesh’s regulated digital payments landscape.
Greater participation can potentially encourage competition around digital payment experiences and financial technology services, although the eventual impact will depend on the products NEO PSP introduces and how widely they are adopted.
The licence itself represents regulatory authorisation rather than confirmation of a specific product portfolio or launch strategy.
Why this matters
Bangladesh Bank’s approval of NEO PSP is significant because it brings a Banglalink subsidiary into the country’s regulated payments market. It also increases the number of licensed PSP and e-wallet operators to 10, adding another participant as Bangladesh expands its formal digital payments ecosystem.
Editor’s note
The telecom connection is the most interesting aspect of this licence. Mobile operators already have extensive consumer relationships and digital distribution infrastructure, creating potential advantages when moving into adjacent financial services. For now, Bangladesh Bank’s approval establishes NEO PSP’s regulatory footing. The more important development will be what Banglalink ultimately builds on top of that licence and how it positions those services within Bangladesh’s increasingly competitive digital payments market.
