The trend in credit-card transactions in all categories in Bangladesh showed a noticeable decline in August 2024, as economic activity across the country was in a downward trajectory.
The Bangladesh Bank (BB) data revealed that domestic transactions within Bangladesh witnessed a slight decrease of 0.45 per cent, amounting to Tk 23.32 billion compared to Tk 23.42 billion in July 2024.
Concurrently, international transactions outside the country totalled Tk 3.72 billion in August, showing a decrease of 21.52 per cent from Tk 4.75 billion in the previous month of July.
Similarly, transactions made with credit cards issued by foreign entities but utilised within Bangladesh decreased to Tk 1.11 billion in August from Tk 1.36 billion in July, indicating a decrease of 18.07 per cent.
Data shows a significant majority (72.11 per cent) of credit card transactions took place using VISA, 17.76 per cent utilised Mastercard and 9.98 per cent made with AMEX cards.
The remaining transactions occurred through other types of cards in August.
The central bank data said inward credit card usage witnessed a decrease in August compared to that of the preceding month.
Credit cards issued by other countries but used within Bangladesh recorded a maximum amount of transactions in cash withdrawals, which was 28.08 per cent of all transactions in August.
Additionally, department stores made up 25.57 per cent. On the other hand, transactions in transportation constituted 17.74 per cent.
The remaining sectors collectively contributed 28.61 per cent to the total amount of transactions.
Analysing country-wise cross-border transactions, the BB data disclosed that the majority of transactions occurred in the USA, accounting for 20.17 per cent.
The rest of such transactions were distributed in India (13.57 per cent), the UK (9.25 per cent), Thailand (8.77 per cent), Singapore (8.09 per cent), Canada (6.82 per cent), Malaysia (4.55 per cent), the UAE (3.88 per cent), Australia (3.05 per cent), the Netherlands (2.88 per cent), Ireland (2.68 per cent), Saudi Arabia (2.53 per cent) and other countries (13.77 per cent).
According to the BB data, credit cardholders engaging in cross-border transactions mostly utilised their cards abroad at department stores, accounting for 26.59 per cent of transactions.
Other notable categories included retail outlet services (16.98 per cent), drug and pharmacies (12.41 per cent), transportation (9.83 per cent), business services (7.43 per cent), clothing (7.10 per cent) and others (19.65 per cent).
© 2024 - All Rights with The Financial Express
