The use of credit cards by Bangladeshi citizens has witnessed a marked increase, both within the country and abroad. In December, domestic credit card transactions grew by 15.11%, while international usage rose by 13.98%.
The United States remained the most popular destination for overseas credit card spending by Bangladeshis during this period.
Simultaneously, foreign nationals in Bangladesh also increased their credit card transactions by nearly 20%.
These insights emerge from the latest report published by Bangladesh Bank, which analysed data from 44 banks and one financial institution issuing credit cards in the country.
Industry experts attribute this seasonal surge in credit card transactions to banks offering various promotional discounts in December, a trend observed annually.
Additionally, the rise in foreign currency transactions is linked to the winter break of educational institutions in Bangladesh, prompting many to travel abroad with their families.
The stabilisation of dollar liquidity has also allowed credit cardholders to endorse up to $12,000 for international transactions.
In contrast, credit card usage had seen a sharp decline in July due to the widespread student-led protests and ensuing violence across Bangladesh.
The latest figures indicate a recovery from that downturn.
Domestic and international spending trends
According to the report, Bangladeshis spent Tk3,215 crore via credit cards within the country in December, compared to Tk2,793 crore in November—an increase of Tk422 crore or 15.10%.
Similarly, overseas expenditure through Bangladeshi credit cards reached Tk491 crore in December, up from Tk431 crore in November, marking a growth of Tk60 crore or 13.98%.
Among international transactions, the highest expenditure in December was recorded in the United States, where Bangladeshis spent Tk74 crore, reflecting an 8.82% increase from November’s Tk68 crore.
The US accounted for 15.12% of total overseas credit card transactions.
Thailand ranked second with Tk64 crore in spending (13.18% of total overseas transactions), followed by Singapore at Tk41 crore and India at Tk40 crore.
Notably, credit card spending in India declined from Tk47 crore in November, continuing a downward trend since July.
Historically, India has been the top destination for Bangladeshi credit cardholders, but that trend shifted in July when visa issuance was restricted following political unrest in Bangladesh.
The limited visa availability has since curtailed medical and leisure travel to India, contributing to the decline in spending.
Categories of overseas spending
Department stores remained the largest category for international credit card transactions, with Bangladeshis spending Tk153 crore in December.
The second-highest spending occurred at retail outlet services, amounting to Tk82 crore—both categories seeing significant growth from November.
Foreign nationals' credit card usage in Bangladesh
December also saw a surge in credit card transactions by foreign nationals in Bangladesh, particularly by US citizens.
Their total expenditure rose to Tk240 crore, up from Tk202 crore in November—a growth of 18.81%.
The highest spending category for foreign nationals was department stores, accounting for Tk93 crore.
Future trends and banking sector insights
An official from Bangladesh Bank’s Payment Systems Department noted that digital financial awareness among Bangladeshis has significantly increased.
Unlike in the past, people now prefer credit cards and mobile banking apps for bill payments and purchases rather than standing in queues at banks or using cash.
The official further stated that credit card usage is expected to grow as banks continue to offer incentives, including discounts on shopping during festive seasons and complimentary lounge access at airports for select cardholders.
Long-term growth in card transactions
The report highlights that credit card transactions have been consistently increasing since the COVID-19 pandemic.
In 2020, total transactions amounted to Tk20,672 crore, rising to Tk27,074 crore in 2021, Tk39,665 crore in 2022, and peaking at Tk45,352 crore in 2023.
However, in December 2024, transactions slightly declined year-on-year, standing at Tk45,055 crore.
Despite this minor dip, experts anticipate continued growth in digital payment adoption, driven by convenience, promotional incentives, and evolving consumer preferences.
