Domestic credit card spending: Sept witnesses 14.42pc growth

Domestic credit card spending in Bangladesh registered a robust growth rate of 14.42 per cent in September 2024, reaching Tk 26.68 billion, according to data from the Bangladesh Bank.

This surge reflects increased consumer activity compared to Tk 23.32 billion in the previous month of August.

Similarly, international transactions outside the country totalled over Tk 4.20 billion during the period in question, showing an increase of 12.88 per cent from over Tk 3.72 billion in August.

However, transactions with credit cards issued by foreign entities but used within Bangladesh decreased to Tk 1.11 billion in September from Tk 1.11 billion in its preceding month, indicating a slight decrease of 0.01 per cent.

Credit card transactions at department stores saw an increase to Tk 13.17 billion during the period under review from Tk 11.79 billion in August.

Similarly, retail outlet services, utilities, cash withdrawal, drug and pharmacies, clothing, transportation, fund transfer, business, professional and government services also increased.

Regarding the card usage pattern, the Bangladesh Bank reveals that 71.77-per cent credit-card transactions took place using VISA and 18.32 per cent utilised Mastercard. On the other hand, 9.74 per cent of transactions were made with AMEX Card.

The remaining transactions were made through other types of cards in September 2024.

Credit cardholders engaging in cross-border transactions mostly utilised their plastics at department stores abroad, accounting for 27.50 per cent of transactions.

Other notable categories included retail outlet services (17.50 per cent), drug and pharmacies (11.30 per cent), transportation (10.30 per cent), business services (8.18 per cent), clothing (7.14 per cent) and miscellany (18.08 per cent).

The majority of transactions occurred in the USA, accounting for 18.23 per cent.

The remaining cross-border transactions included India (12.08 per cent), Thailand (9.88 per cent), the UK (8.83 per cent), Singapore (7.22 per cent), Canada (6.26 per cent), Malaysia (5.36 per cent), the Netherlands (3.62 per cent), the UAE (3.49 per cent), Saudi Arabia (3.22 per cent), Ireland (3.20 per cent), Australia (2.88 per cent) and others (15.72 per cent).

However, card usage witnessed a slight decrease in September 2024 than in August.

Credit cards issued by other countries but used within Bangladesh recorded a maximum of transactions in cash withdrawals, which was 34.12 per cent of all transactions in September.

Additionally, department stores made up 30.18 per cent, while transactions in transportation constituted 13.39 per cent.

The remaining sectors collectively contributed 22.31 per cent to the total amount of transactions.

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