Google’s wallet service, ‘Google Pay,’ is set to officially launch in Bangladesh. The digital transaction service is expected to be introduced within the next month, TechWorld has confirmed after speaking with relevant parties. This development is poised to mark a new chapter in the country’s digital payments sector.
Google Pay, and similar wallet apps, typically require users to link their bank accounts or ATM card numbers. This eliminates the need to physically use an ATM card at point-of-sale (POS) machines during purchases. Instead, the smartphone itself functions as a digital wallet. Upon tapping the phone on a POS machine, the user’s identity is confirmed, and the amount is automatically deducted from their bank account. The transaction is processed through the bank, with Google Pay acting as the connecting platform.
Essentially, anywhere an ATM card can be used for payment, a smartphone will now suffice. However, this requires the smartphone to have Near Field Communication (NFC) capabilities and the POS machine to support contactless transactions.
The project is a joint initiative by City Bank and Google. Initially, City Bank customers will be able to add their Visa and Mastercard cards to the Google Pay app. The service will gradually be extended to customers of other banks. For now, transactions via Google Pay using local bank cards will be limited to Bangladeshi Taka.
Generally, there are no additional fees for making payments or transferring money using a bank account or debit card through Google Pay. However, banks may choose to impose their own fees. The news of Google Pay’s launch in the country was first reported by The Business Standard. Their report mentioned that if Google processes these local transactions through international servers for any reason, a fee might be applicable. It further stated that Google Wallet will not store user data, thus not requiring direct approval from Bangladesh Bank for the app’s launch. However, banks preparing to connect with the digital wallet must inform the central bank before commencing the service.
Google Pay is already operational in numerous countries worldwide. In neighboring India, a significant portion of digital transactions is handled by Google’s wallet service. The service was also launched in Pakistan last March. The integration of Google Pay with Bangladesh’s banking infrastructure had previously been a barrier to its introduction in the country.
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