VEON and Square Group Receive Bangladesh Bank Approval for Digital Bank License
Banglalink's existing Mukto Pay service operates under a separate Payment Service Provider license.
Rhea-AI Summary
VEON (VEON) and Square Group's joint venture received Bangladesh Bank approval for a digital bank license on September 25, 2026.
The venture is between VEON Digital Financial Group and Square Group. The license marks VEON's entry into digital banking in Bangladesh. Banglalink already holds a separate Payment Service Provider license supporting its Mukto Pay service. The new bank is expected to connect with Banglalink's mobile ecosystem.
Separately, VEON has committed an initial US$250 million investment under its “Invest in Bangladesh NOW!” initiative, toward an ambition to mobilise US$1 billion in foreign direct investment for Bangladesh. VEON Digital Financial Group served 59 million active financial services customers across Pakistan, Kazakhstan and Uzbekistan as of Q2 2026.
Positive
- Digital Bank license approved by Bangladesh Bank on September 25, 2026
Negative
- None.
Key Figures
- Initial anchor investment
- US$250 million
- Committed under Invest in Bangladesh NOW!
- FDI mobilization ambition
- US$1 billion
- Stated foreign direct investment ambition for Bangladesh
Historical Context
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Banglalink received Bangladesh Bank PSP license for Mukto Pay before this digital-bank approval.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
payment service provider regulatory
foreign direct investment financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Approval extends VEON's digital financial services ambitions under its "Invest in Bangladesh NOW!" framework
Dubai, Dhaka and New York, September 25, 2026 – VEON Ltd. (Nasdaq: VEON, "VEON"), a global digital operator, today announced that a joint venture between VEON Digital Financial Group and Square Group, one of Bangladesh's leading business conglomerates, has received approval for a Digital Bank license from Bangladesh Bank, the central bank of Bangladesh. The license marks VEON's entry into full-scale digital banking in Bangladesh, building on Banglalink's existing Payment Service Provider (PSP) license, which underpins its Mukto Pay digital payments service.
This milestone reflects continued progress under "Invest in Bangladesh NOW!": a public-private partnership with the Government of Bangladesh that VEON formally launched in New York during UN General Assembly High-Level Week. VEON has committed an initial US
With connectivity as its foundation, the new digital bank is expected to integrate closely with Banglalink's mobile ecosystem, extending accessible, end-to-end financial tools to mobile users across the country. By combining VEON's global technology expertise with Square Group's deep domestic manufacturing, distribution and retail networks, the venture is intended to bring modern banking to communities that remain outside the reach of conventional financial services.
"Financial inclusion is key to eradicating poverty, and today's approval marks an important step toward that goal in Bangladesh. We're grateful to Bangladesh Bank and the Government of Bangladesh for their continued support in building the digital financial infrastructure the country needs. Together with Square Group, a trusted and well-established partner, this brings us closer to our commitment to bringing more of Bangladesh's unbanked population into the formal financial services system," said Kaan Terzioglu, Group Chief Executive Officer of VEON.
"On the 101st birthday of Samson H Chowdhury, founder Chairman of Square Group, we are delighted to receive Bangladesh Bank's approval for the Digital Bank license, for which we are deeply honoured by the trust and confidence of Bangladesh Bank. VEON brings the right technological expertise and global experience, while Square Group is a trusted name built over the last 68 years. We hope that the people of this country will benefit from the services of this digital bank once it goes into operation," said Tapan Chowdhury, Managing Director, Square Group.
"With our Mukto Pay already in place and a digital banking license now awarded, we are well positioned to serve all Bangladeshis, especially those who have lacked access to conventional banking. Combining Banglalink's nationwide telecommunications network and distribution with digital financial services enables the new digital bank to ensure financial inclusion for the people of Bangladesh," said Johan Buse, Chief Executive Officer of Banglalink.
VEON Digital Financial Group serves 59 million active financial services customers across Pakistan, Kazakhstan and Uzbekistan as of Q2 2026. Bangladesh is now set to join this growing footprint following today's approval, advancing VEON's strategy of building leading digital financial services ecosystems across its markets and complementing recent regulatory and commercial milestones in Kazakhstan.
About VEON
VEON is a digital operator that provides connectivity and digital services to over 150 million connectivity customers and more than 227 million digital users. Operating across five countries that are home to more than
About SQUARE Group
SQUARE Group, founded in 1958, is one of Bangladesh’s leading diversified business groups, with operations spanning pharmaceuticals, textiles and garments, toiletries, food and beverages, healthcare, information technology, and other sectors. With its flagship company, SQUARE Pharmaceuticals PLC, the Group has built a strong reputation for leadership, quality, innovation, and excellence, while expanding its presence in international markets. For more information, please visit: http://www.squaregroup.com/
About Banglalink
Banglalink, the country's leading digital operator, places people at the heart of everything it does. Guided by a people first approach rooted in care, Banglalink works to make digital and financial services more accessible and meaningful in everyday life, ultimately making a better life for all. The company offers a range of digital solutions, including the MyBL super app, the country's largest entertainment platform Toffee, and RYZE, the country's first AI powered digital lifestyle brand for youth. Banglalink is a fully owned subsidiary of VEON, a Nasdaq listed global digital operator headquartered in Dubai.
Forward-Looking Statements
This release contains "forward-looking statements," within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, statements relating to Banglalink's digital banking platform, VEON's investment intentions in Bangladesh, and VEON's digital financial services products and strategy. There are numerous risks and uncertainties that could cause actual results and performance to differ materially from those expressed by such statements, including risks relating to Banglalink's digital banking platform, VEON's investment intentions in Bangladesh, and VEON's digital financial services products and strategy, among others discussed in the section entitled "Risk Factors" in VEON's 2025 Form 20-F filed with the SEC on March 16, 2026 and other public filings made by VEON with the SEC. The forward-looking statements contained herein speak only as of the date of this release, and VEON disclaims any obligation to update them, except as required by law.
Contact Information
VEON
pr@veon.com
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