Credit card spending climbs 35pc in Aug amid digital shift

Credit card usage in Bangladesh has surged sharply over the past year, reflecting stronger consumer confidence and an uptick in retail activity in the domestic market.

According to the latest data from Bangladesh Bank (BB), domestic credit card transactions increased by 34.84 per cent between August 2024 and August 2025, highlighting the growing reliance on digital payment tools and expanding consumer purchasing power, particularly in urban areas.

In August 2025, total domestic credit card transactions amounted to Tk 31.45 billion, up from Tk 23.32 billion in August 2024, BB data shows.

Credit card transactions abroad by Bangladeshis also witnessed a positive growth, with a year-on-year increase of 18.91 per cent in August 2025.

These transactions stood at Tk 4.43 billion in August 2025, up from Tk 3.77 billion in the same month last year, despite some fluctuations throughout the year.

Analysts say this growth in foreign spending may be linked to increased travel and rising online purchases from international platforms.

Meanwhile, overall inward card transactions jumped by 64.86 per cent year-on-year, reflecting stronger economic activity and a possible rebound in tourism and business travel.

In August 2025, spending by foreign nationals in the country totalled Tk 1.83 billion, up from Tk 1.11 billion in August 2024, as per BB data.

An official from a private commercial bank, speaking on condition of anonymity, said that the continued growth in credit card usage points to Bangladesh's ongoing digital transformation, supported by higher card penetration, promotional offers, and the expanding reach of e-commerce and point-of-sale networks.

Experts, however, stress the importance of ensuring cybersecurity and responsible credit usage to maintain sustainable growth in the sector.

Dr. Masrur Reaz, Chairman of Policy Exchange Bangladesh, noted that the rise in credit card transactions reflects both economic resilience and shifting consumer behaviour in light of the economic realities facing Bangladesh in recent years.

"The growth in credit card usage indicates a gradual formalisation of consumer spending and greater trust in digital financial services," he said. "It also points to an expanding middle class with greater purchasing power and increasing confidence in the banking system."

He added that the increasing reliance on credit cards for both domestic and international purchases suggests deeper financial inclusion and modernisation of lifestyles.

However, he also noted that inflationary pressures could be pushing some consumers to rely more on credit card loans to cope with the rising cost of living.

"However, policymakers and financial institutions must ensure that this growth is accompanied by strong consumer protection, prudent lending practices, and robust cybersecurity measures," Dr. Reaz said.

"Otherwise, the rapid expansion of credit card usage could expose both banks and consumers to new forms of financial risks," he cautioned.

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