Since the political upheaval that led to a change in power last August, Bangladeshi credit card transactions abroad have surged in the United States while witnessing a decline in India.
Until July, India remained the top destination for Bangladeshi credit card spending.
Meanwhile, January saw a slight decrease in credit card transactions both domestically and internationally.
However, credit card usage by foreign nationals within Bangladesh has increased.
These findings are highlighted in the latest report by the Bangladesh Bank.
Industry experts note that credit card transactions peak annually in December, as school holidays prompt many to travel abroad for vacations or medical treatment.
Conversely, January marks the beginning of the academic year, restricting international travel and prioritising school-related expenses such as admissions, books, uniforms, and other essentials.
This seasonal trend resulted in a decline in credit card transactions in January, but spending is expected to rebound in February and March.
The central bank’s statistics department compiled the report based on data from 44 banks and one financial institution issuing credit cards in Bangladesh.
The report details credit card spending by Bangladeshi citizens both domestically and abroad, along with the expenditure of foreign nationals within Bangladesh.
According to the report, Bangladeshis spent Tk3,125 crore on domestic credit card transactions in January, down from Tk3,215 crore in December—a decline of 2.80%.
Similarly, international credit card spending by Bangladeshis amounted to Tk445 crore in January, compared to Tk491 crore in December, marking a 9.34% decrease.
The data reveals that in December, the highest credit card spending abroad occurred in the United States, where Bangladeshi cardholders spent Tk68 crore—15.44% of total international transactions.
Thailand ranked second with Tk64 crore (14.38%), followed by Singapore with Tk38 crore, Malaysia with Tk35 crore, and the United Kingdom with Tk33 crore. India, previously a major destination for credit card usage, dropped to sixth place with Tk32 crore, down from Tk40 crore the previous month.
The decline in India-bound transactions has been noticeable since July.
A review of recent months indicates that India was traditionally the top destination for Bangladeshi credit card spending abroad.
However, this trend shifted in July, coinciding with student and public protests in Bangladesh, prompting India to restrict its visa processing.
This policy change curtailed travel for medical and tourism purposes, leading to a sustained reduction in credit card usage in India, according to banking industry insiders.
Bangladeshi cardholders primarily use their credit cards abroad in department stores, where January transactions amounted to Tk132 crore.
The second-highest expenditure category was retail outlet services, accounting for Tk74 crore in January.
While Bangladeshi credit card usage declined in January, spending by foreign nationals within Bangladesh increased.
Foreigners spent Tk253 crore via credit cards in January, compared to Tk241 crore in December—an increase of Tk12 crore.
Among foreign nationals, American credit cards recorded the highest expenditure in Bangladesh, totalling Tk67 crore, followed by British cardholders with Tk28 crore.
A Bangladesh Bank official from the Payment Systems Department commented that Bangladeshis are becoming increasingly aware of digital payment methods, akin to trends in developed nations.
“People no longer stand in queues at banks to pay bills, nor do they rely heavily on cash transactions. The majority now use cards or apps for shopping, utility bill payments, and other financial activities,” he stated.
When asked about the growing trend, he added, “This upward trajectory in transactions is expected to continue. Banks are offering various incentives, including discounts on shopping during festivals like Eid and access to airport lounges, encouraging greater use of credit cards.”
