Bangladesh central bank backs PalmPay smartphone financing pilot in first-of-its-kind approval

Bangladesh’s central bank has approved a one-year pilot programme by PalmPay to finance the purchase of 10,000 smartphones, marking the first time the regulator has granted such authorisation and signalling a policy push to widen digital and financial inclusion in the country.

Bangladesh Bank said the approval allows PalmPay Bangladesh Limited to offer affordable, instalment-based smartphone financing under a closely supervised framework aimed at low-income individuals and first-time smartphone users.

Smartphones are increasingly seen by policymakers as critical infrastructure for expanding access to digital payments, banking and other financial services in emerging markets, particularly among underserved populations.

“The pilot will enable greater participation in the digital economy by providing affordable access to smartphones, which serve as a key gateway to financial services,” Bangladesh Bank said, adding that the programme aligns with its broader financial inclusion strategy.

PalmPay, which began operations in Bangladesh in 2024, has until now offered cardless smartphone instalment solutions through partnerships with mobile network operators and financial institutions. The formal approval from the central bank gives the fintech greater regulatory clarity and flexibility to expand its offerings in the market.

“This approval marks a historic milestone for both PalmPay and Bangladesh’s financial ecosystem,” said Jun Zeng, also known as Ethan, managing director of PalmPay Bangladesh Limited.

“It demonstrates confidence in our technology, governance and responsible approach to expanding digital access. Smartphones are now essential infrastructure for financial inclusion, and this pilot will help more people safely participate in the digital economy,” he added.

Bangladesh has made rapid progress in digital financial services in recent years, driven by mobile payments and government-backed initiatives to reduce cash usage. However, limited access to affordable smartphones remains a barrier for millions of low-income users, according to industry analysts.

PalmPay said the pilot would support access to payments, savings, learning and communication tools, while operating within safeguards set by the central bank to manage consumer protection and credit risks.

The company is a multinational fintech operating across Africa and South Asia and is Nigeria’s largest digital bank by users. It offers digital payments, lending and other financial services targeted at mass-market consumers.

PalmPay was named one of the world’s top 300 fintech companies in 2025 by CNBC and Statista. The Bangladesh smartphone financing pilot reflects its broader strategy of combining financial inclusion with regulated, scalable technology in emerging markets.