PayPal and Stripe Hold the Key to a Startup Boom in Bangladesh

At just 22, Sumon Ali started a successful freelancing career serving international clients, and now, at his 28, he is co-founding a foreign startup.

 But every paycheck of his comes with a struggle—no PayPal, no Stripe, only detour transactionsand delays. 'In Bangladesh, it’s not a lack of talent holding us back—it’s a lack of access.'

With a youth expanding internet penetration, and a growing number of tech-savvy individuals, the country is brimming with untapped potential. While India enabled PayPal payments in 2017, Bangladesh is still waiting for this most basic financial gateway, without it, tech-entrepreneurs are facing a lack of enthusiasm.

However, over the past decade, Bangladesh has emerged as a quiet contender in the global digital economy, making remarkable progress in entrepreneurship and tech innovation. Just as the country once empowered millions to work abroad and send back vital remittances, a new wave is building—this time driven by digital entrepreneurs who are earning globally, but working from home. Yet, the absence of international payment gateways like PayPal and Stripe remains a critical bottleneck, stifling potential and disconnecting Bangladesh from seamless participation in the global marketplace. Enabling these platforms could ignite the next economic transformation—one where Bangladesh doesn't have to send its workforce abroad for foreign earnings, but nurtures a new generation of digital nomads and startup founders right at home. The momentum is undeniably here; what’s missing is timely access.

Recently in April, as Interim Chief Muhammad Yunus met Lauren Dreyer, Vice President for Global Engagement at SpaceX, on the sidelines of the Earthna Summit in Doha, PayPal’s integration into Bangladesh’s digital ecosystem was also discussed. PayPal is reportedly being explored to facilitate digital transactions linked to Starlink’s operations in Bangladesh starting May 2025. However, a full-scale rollout of PayPal in the country is now an urgent necessity.

Startups are emerging in areas like e-commerce, freelancing, fintech, and edtech, as young entrepreneurs bubble with ideas—but many find themselves trapped by the limitations of the local financial ecosystem. Freelancers in Bangladesh face similar frustrations. Despite the country ranking the second largestprovider of online workers in the world, many professionals struggle to receive payments efficiently. Platforms like Fiverrand Upwork may support their services, but without PayPal, withdrawals are cumbersome and indirect. Workarounds such as using third-party agents or relying on foreign relatives are not only risky but also unsustainable. This severely undercuts the earnings and motivation of freelancers and startup founders alike.

The prolonged absence of PayPal remains a major obstacle for Bangladesh’s thriving community of freelancers, entrepreneurs, and e-commerce ventures—limiting their ability to receive international payments with ease and efficiency. As the global gig economy grows, so too does the urgency for integrating trusted payment gateways.

Industry experts point to several advantages PayPal would bring to Bangladesh:

In addition to PayPal, demand to bring Amazon’s full suite of services into Bangladesh is also growing. Access to Amazon Prime, Kindle Direct Publishing (KDP), and affiliate marketing through locally issued bank accounts could unlock significant opportunities for digital entrepreneurs and content creators. Similarly, the international payment platform Wise—which previously allowed Bangladeshi users to receive cross-border payments—has recently restricted inbound transfers, creating barriers for remote workers.

Furthermore, integrating platforms like Stripe, known for powering global e-commerce and SaaS ventures, is critical for enabling Bangladeshi startups to compete internationally. As the country positions itself as a rising hub for digital talent, access to these tools is not just a convenience—but a necessity to thrive in the global digital economy. If Stripe is introduced in Bangladesh, it will simplify payments and lead to the launch of many new startups.

"If Stripe was available here, I would launch a startup here in Bangladesh myself, not just be a co-founder,” said Sumon Ali, working from a remote village in Dinajpur, “Stripe is even more important, as PayPal has alternatives—but there is no alternative to Stripe in Bangladesh. Therefore bringing it to Bangladesh should also be a top priority."

PayPal and Stripe are both global payment platforms, but they serve slightly different roles. PayPal primarily supports freelancers, small businesses, and peer-to-peer transactions, making it ideal for individual professionals receiving payments from global clients. Stripe, on the other hand, is a developer-focused platform that enables businesses—especially startups and Software as a Service (SaaS) companies—to integrate seamless online payment systems into websites and apps, much like SSLCommerz does locally in Bangladesh but on a global scale.

If enabled, PayPal would integrate Bangladeshi freelancers and small merchants directly into global marketplaces, while Stripe could power scalable digital businesses and startups, enabling them to process international subscriptions, e-commerce, and API-based services. For example, when India enabled PayPal in 2017, it accelerated its freelance exports as well as attracted more global transactions into its formal banking system—outcomes Bangladesh could replicate with the right financial gateways in place.

Since Bangladeshi freelancers don’t have direct access to PayPal, they end up paying taxes and fees to foreign governments—resulting in a loss of valuable foreign currency for Bangladesh. Even countries like Tuvalu and Fiji, which are less populous than many other countries in the world, have access to PayPal's basic services, which Bangladesh currently do not have.

The government of Bangladesh must prioritize the integration of these international payment gateways. Regulatory barriers, compliance issues, and concerns about money laundering can and should be addressed through transparent policies and digital safeguards. Many other countries have successfully navigated these challenges, and Bangladesh can follow their examples too.The Bangladesh Bank must fast-track regulatory clearance for PayPal and Stripe within the next fiscal year, as well as the ICT Division should launch a task force to make it happen.

There is a strong business case for enabling Stripe and PayPal to operate in the country. Doing so would encourage foreign investment, foster global partnerships, and empower the next generation of entrepreneurs. It would also improve the country’s digital image and contribute to the growth of the formal economy by encouraging more transparent, traceabletransactions.

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