TBT Desk: Bangladeshi citizens increasingly use credit cards at home and abroad, with recent data from Bangladesh Bank revealing a significant rise in transactions. In December, domestic credit card usage grew by 15.11%, while spending abroad saw a 13.98% increase.
Among international destinations, Bangladeshis spent the most using their credit cards in the United States, Thailand, and Singapore. Industry insiders suggest that the political shift in Bangladesh may have led many political figures to relocate to these countries, contributing to the higher spending. This marks a rebound after a decline in overseas credit card use following the government's fall in August.
Bank officials note that December traditionally sees a rise in credit card transactions due to year-end promotional offers. Additionally, with educational institutions closed for the month, many families travel abroad, further driving up spending. The recent stabilisation of dollar availability has also played a role, allowing cardholders to endorse up to $12,000.
Credit Card Spending in Numbers
According to Bangladesh Bank's latest report, domestic credit card spending in December totalled Tk 3,215 crore, compared to Tk 2,793 crore in November-a rise of Tk 422 crore or 15.10%.
Meanwhile, overseas transactions amounted to Tk 491 crore in December, up from Tk 431 crore in November, reflecting a Tk 60 crore (13.98%) increase.
The United States topped the list of overseas credit card spending, with Bangladeshis using Tk 74 crore in December-an 8.82% rise from November's Tk 68 crore.
The US accounted for 15.12% of total foreign credit card spending. Thailand followed, with Tk 64 crore spent (13.18%), while Singapore ranked third at Tk 41 crore. India came in fourth with Tk 40 crore, a drop from November's Tk 47 crore.
Notably, Bangladeshi credit card usage in India has declined since the fall of Sheikh Hasina's government in August. Historically, India has been the most common destination for Bangladeshis using credit cards, particularly for medical and travel expenses.
However, July saw a disruption when student-led protests led to visa restrictions, limiting travel and reducing credit card transactions.
Departmental stores saw the highest foreign credit card spending, amounting to Tk 153 crore in December. The second-highest expenditure was in retail outlet services, where Bangladeshis spent Tk 82 crore.
Interestingly, credit card usage by American citizens in Bangladesh also surged.
In December, US nationals spent Tk 240 crore in Bangladesh, up from Tk 202 crore in November-an increase of 18.81%. Their largest spending category was departmental stores, where they spent nearly Tk 93 crore.
The growing reliance on credit cards, both domestically and internationally, highlights shifting consumer behaviour, economic fluidity, and evolving travel trends among Bangladeshis.
Whether driven by political, economic, or personal factors, the increasing credit card usage reflects the changing financial landscape of the country.