With growing Xoom use, freelancers cry for full-fledged PayPal service
Experts say full operation to boost remittance inflow
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The growing number of freelancers across the country has reiterated their call for launching full-fledged online payment services of Paypal in Bangladesh.
They, however, admitted to have tasted some positive impacts of the recently-launched Xoom service although a section of the freelancers has voiced concern for not having any option in Xoom service to send money abroad.
Echoing the view, industry insiders and experts say the full-fledged operation of Paypal will only contribute towards further boosting the country’s fast-growing e-commerce business and freelancing.
They said it will also help bring in huge foreign remittance, have value addition to the national economy and thereby contribute to the national exchequer.
The global online money transfer giant launched its service on a limited scale for receiving money in Bangladesh on October 19 last year aiming to prevent hundi and corruption.
The Xoom service was previously in the shape of a separate entity, PayPal bought it in 2015 as its cross-border payment service.
In Bangladesh, the growing numbers of PayPal-using freelancers are now able to avail the service from nearly 12,000 branches of nine banks, including Sonali, Rupali, Agrani, Uttara, Pubali and Social Islami banks.
Local users have to pay $4.99 as charge to receive $1,000. But any transaction worth over $1,000 is totally free of cost.
At present, PayPal Xoom account holders in Bangladesh can bring upto $10,000 in a single transaction.
Xoom’s official website stipulates that one cannot use his/her PayPal balance to pay for a Xoom transaction as Xoom only supports international money transfers.
Most of the local IT freelancers, hired by US-based farms and clients, want trusted platforms or marketplaces like Paypal as it is considered to be one of the most accepted and integrated payment methods.
Asked, local outsourcing and freelancing training centre Advance IT Center’s owner Alim Tasnim hailed the government's move to introduce Xoom service of late.
But in many cases, he pointed out, Bangladeshi freelancers lose opportunities to get a client for not having a PayPal account.
According to him, nearly 80 per cent of the country’s freelancers usually engage in IT freelancing through trusted platforms where Paypal’s Xoom has limited access.
PayPal is, in fact, a digital payment system while Xoom is an online money transfer system.
When asked, Sonali Bank CEO and Managing Director Obayed Ullah Al Masud said his bank has witnessed a rise in receiving foreign earnings following the launching of Xoom service.
According to him, Sonali Bank has received Tk 87.0 million through Xoom over the period of April-December last year.
About PayPal’s full service here, State Minister for ICT Zunaid Ahmed Palak said talks with Paypal are on for opening up of further operations.
Apparently, he noted, a certain level of development has been made – but that it’ll take time to get Paypal operations fully here.
Bangladesh is now home to 16.8 per cent of outsourced online workers across the world.
There are nearly 500,000 outsourced online workers in the country earning $100 million every year, according to ICT division.