Grameen Telecom’s digital wallet ‘Shomadhan’ receives PSP license

Grameen Telecom’s subsidiary Shomadhan Services Limited has received a license from Bangladesh Bank to operate as a Payment Service Provider (PSP), enabling it to offer digital wallet (e-wallet) services nationwide.

The central bank’s Payment Systems Department issued an official circular on Monday, notifying all banks, mobile financial service providers, payment system operators, and PSPs of the development.

According to the circular, Shomadhan Services Limited has been conditionally licensed under Section 5(4) of the Payment and Settlement Systems Act to provide payment services within Bangladesh.

Shomadhan first applied for a PSP license on November 16, 2021. Although it met the conditions for a No Objection Certificate (NOC), Bangladesh Bank delayed the decision until August 2024. The NOC was finally issued on September 29, 2024, paving the way for the company to secure its PSP license.

The company’s board of directors consists of nine members, initially nominated by Grameen Telecom. M. Shahjahan, former managing director of Grameen Bank, serves as chairman, while Grameen Telecom chairman Md. Ashraful Hasan has been appointed managing director of Shomadhan Services.

PSPs are typically known for providing e-wallet services, allowing customers to store funds digitally and make payments for online purchases, utility bills, tuition fees, and more. Leading international examples include China’s Alipay.

Currently, Bangladesh Bank has licensed eight PSPs, including iPay Systems, D Money Bangladesh, and Recursion Fintech. Mobile operators Robi and Banglalink have expressed interest in launching similar services, while e-commerce platforms Daraz and Chaldal have already applied for licenses.

In addition to PSPs, several mobile financial service (MFS) providers also facilitate shopping, bill payments, and fund transfers. Around 16 banks are currently offering such services with approval from Bangladesh Bank.

These include: bKash (BRAC Bank), Rocket (Dutch-Bangla Bank), mCash (Islami Bank), Upay (United Commercial Bank), TeleCash (Southeast Bank), OK Wallet (One Bank), MyCash (Mercantile Bank), PrimeCash (Prime Bank), SpotCash (Standard Bank), Mobile Money (Trust Bank) and Tap ‘n Pay (Meghna Bank).

Other banks providing SureCash services include Rupali Bank, First Security Islami Bank, Bangladesh Commerce Bank, NCC Bank, and Jamuna Bank.