Issuance of plastic cards (debit, credit and prepaid) has risen by 142 per cent and the total transaction volume through cards has increased by 166 per cent over the past five-year period, according to Bangladesh Bank (BB) data.
Over the past five years, Bangladesh has witnessed a remarkable transformation in its financial landscape, driven by the rapid expansion of card-based transactions.
The initiative by BB has been successful in promoting a cashless banking system and the continued growth in card usage indicates a positive trend towards a more digitally inclusive financial ecosystem in Bangladesh.
The number of debit cards issued grew by 113 per cent from 18.6 million in January 2020 to 39.6 million by December 2024.
Credit cards saw a 75 per cent increase, rising from 1.5 million to 2.7 million while prepaid cards experienced an extraordinary 1,660 per cent growth, surging from 0.43 million to 7.5 million during the same period, the central bank data revealed.
Alongside this expansion, the transaction volume also saw a significant boost, increasing by 166 per cent from Tk168.087 billion in 2020 to Tk 446.913 billion by the end of 2024, according to the BB data.
Stakeholders said the significant rise in debit, credit, and prepaid card usage indicates a clear shift in consumer behaviour.
As more people embrace digital payments, banks are focusing on improving card security, offering innovative products, and expanding acceptance points across the country, according to them.
With the increasing adoption of card payments, e-commerce businesses are seeing a boost in online transactions. This trend underscores the need for seamless and secure payment solutions to enhance customer confidence in digital commerce, they stated.
AKM Fahim Mashroor, CEO of Bdjobs.com, stated that the current number of plastic cards issued is still not as high as it should be.
"The card base in Bangladesh remains relatively low. There are regulatory bottlenecks in issuing credit cards, which hinder growth," he said.
He also pointed out that some banks primarily issue cards to the financially well-off customers rather than making them accessible to a broader population, contributing to a digital divide.
"For the expected growth of credit cards, regulatory issues need to be eased," Mashroor also said.
He added small shops are still unable to accept card payments.
These figures underscore the growing preference for cashless transactions among both consumers and merchants, signaling a major shift toward digital financial services.
This transformation can be traced back to 2012 when Bangladesh Bank embarked on an ambitious journey to modernise the country's financial system by introducing plastic money-various types of debit, credit, and prepaid cards.
The initiative aimed to establish a cashless banking system, leveraging information technology to integrate Bangladesh into the global digital economy.
To facilitate this transition, the central bank's Payment Systems Department formulated essential guidelines and a legal framework, laying the foundation for secure and efficient card-based transactions.
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