Credit card use by BD nationals abroad falls

Transactions made by Bangladeshi credit cardholders remained nearly 2.93 times higher than those made by foreign nationals within Bangladesh in January this year.
The value of transactions conducted by Bangladeshi nationals outside the country totalled Tk 5.32 billion in January 2024 -- down by 8.16 per cent from Tk 5.79 billion in December 2023, according to Bangladesh Bank data.
However, credit card transactions within Bangladesh experienced a marginal increase of 0.15 per cent in January, reaching Tk 26.78 billion, compared to Tk 26.74 billion in December 2023.
Transactions made with credit cards issued by foreign entities for use within Bangladesh dropped to Tk 1.81 billion in January -- down from Tk 1.84 billion in December 2023 -- representing a decrease of 1.35 per cent.
The spending habits of credit cardholders engaging in cross-border transactions mirrored the domestic pattern in January 2024. These cardholders primarily used their cards abroad at departmental stores, accounting for nearly 27.46 per cent of transactions, according to the central bank data.
Other notable categories included retail outlet services (15.81 per cent), drugs and pharmacies (12.33 per cent), cash withdrawal (10.26 per cent), clothing (8.91 per cent), transportation (6.92 per cent) and various other categories (18.30 per cent).
The breakdown of cross-border transactions by country shows the majority occurred in India, accounting for nearly 18.14 per cent, as per the central bank data.
Bangladeshi nationals using credit cards in India saw a 16.5 per cent drop in January 2024, according to Bangladesh Bank data.
The value of credit card transactions in India by Bangladeshis fell to Tk 965 million in January from Tk 1.15 billion in December 2023, marking a 16.52 per cent decline.
The remaining cross-border transactions were spread across various countries. The United States accounted for 13.56 per cent, followed by the UAE 11.62 per cent, Thailand 10.50 per cent, Singapore 6.82 per cent, Saudi Arabia 6.00 per cent, the UK 5.61 per cent, Canada 5.15 per cent, Malaysia 3.80 per cent, Australia 2.76 per cent, the Netherlands 2.22 per cent, Ireland 2.18 per cent and other countries for 11.65 per cent.
The central bank data also shows VISA cards were the most popular choice, accounting for nearly 71.10 per cent of transactions. Mastercard use came in at around 18.21 per cent, while AMEX cards were used for about 10.52 per cent of transactions.
A small number of transactions used other card types in January 2024.

[email protected]