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Cross-border credit-card transactions in India by Bangladeshi users saw a significant decline in January 2025, falling to Tk 326 million from Tk 400 million in December last year, according to the latest Bangladesh Bank data.
This marks an 18.5-per-cent drop, reflecting a slowdown in overseas spending amid economic uncertainties.
A country-wise breakdown of cross-border transactions reveals that the majority of credit card transactions took place in the USA, accounting for 15.44 per cent.
The remaining transactions were spread across other countries: Thailand (14.38 per cent), Singapore (8.58 per cent), Malaysia (7.87 per cent), UK (7.45 per cent), India (7.31 per cent), Saudi Arabia (6.812), Netherlands (3.90 per cent), Canada (3.84 per cent), UAE (3.78 per cent), Australia (3.16 per cent), Ireland (2.68 per cent), and other countries (14.79 per cent).
Overall, domestic and cross-border transactions, as well as credit card usage by Bangladeshi nationals abroad, saw a slight decrease in January 2025 compared to the previous month. In contrast, card usage by foreign nationals in Bangladesh experienced a slight increase during the same period, the BB data revealed.
The credit card transaction data for January 2025 reveals a 2.80 per cent drop in domestic transactions within Bangladesh, decreasing to Tk 31.25 billion from Tk 32.15 billion in December 2024.
Concurrently, international transactions conducted outside the country dropped to Tk 4.45 billion in January 2025, reflecting a notable decrease of 9.34 per cent from Tk 4.91 billion in December 2024.
However, transactions involving credit cards issued by foreign entities but used within Bangladesh experienced a slide rise, increasing by 4.86 per cent to Tk 2.52 billion in January 2025 from over Tk 2.40 billion in December 2024, the central bank data revealed.
In January 2025, credit card transactions at department stores decreased to over Tk 15.20 billion from Tk 15.68 billion in December 2024. Similarly, transactions in retail outlet services, cash withdrawal, clothing stores, transportation, fund transfer, and business services decreased compared to that of the previous month.
In contrast, paying utility bills, drug and pharmacies, government services, and professional services saw a slight increase in transactions in January compared to December.
In 2012, Bangladesh Bank launched an initiative to introduce plastic money (various types of cards) with the goal of establishing a cashless banking system powered by information technology on a global scale. To support this effort, the Payment Systems Department has developed essential guidelines, including a legal framework.
The BB data also revealed that the majority of transactions (72.11 per cent) were made using VISA cards, while Mastercard accounted for 18.08 per cent and AMEX cards for 9.57 per cent. The remaining transactions were conducted using other types of cards in January 2025.
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