Digital payments boom in BD as decentralised finance grows

Digital payments in Bangladesh see a fast growth, recording a 25-percent rise during the Ramadan binge, especially defrayed through cards, as decentralised finance flourishes worldwide.
According to Visa, a global digital payment platform, nearly 70 per cent of such digital payments came through ecommerce.
The Visa authorities announced Wednesday in a press statement that consumers in Bangladesh showed robust spending on ecommerce during Ramadan 2024.
They also observed that both online and in-store spends by digital system increased, by nearly 50 per cent and 15 per cent respectively, and almost 70 per cent of in-store shopping happened on credit cards.
During holy months of Muslims, retail spends picked up pace with consumers exercising their purchasing power and paying through both debit and credit cards.
However, on the days preceding Eid, more than 60 per cent of spending happened in stores. Apparel, supermarkets and variety stores, mobile phones and accessories and other retail outlets contributed to 65 per of these total in-store spends.
A healthy growth in both online and in-store digital payments signals that people are opting for safer and more convenient transactions by using cards.
Sabbir Ahmed, Visa country manager for Bangladesh, Nepal, and Bhutan, says: "It is exciting to see the speedy adoption of card payments by consumers."
An increase in ecommerce spending accounted for nearly 70 per cent of Ramadan spends.
"We expect this momentum in digital-payment usage to continue during Eid-ul-Azha, and with the parallel growth of credit and debit card uses, it underscores the confidence and trust people place in Visa," he says.
Visa consulting and analytics shared that during the holy period of Ramadan 2024, people transacted more online as compared to in-store or face-to-face shopping.
This year, the share of ecommerce in overall spends rose by 6.0 percentage points over 2023, with Visa cardholders spending most on travel, education, and utilities.
"The young tech-savvy population, high smart-phone adoption and government initiatives favoring digital transformation are creating a promising future for Bangladesh,' the Visa country manager, Mr Sabbir Ahmed, points out the boosters.
"While cash used to be the primary mode of payment, there is a clear shift underway, and we are delighted to help power this change towards becoming Smart Bangladesh."
He mentions that they continuously work with their bank and merchant partners to increase card usage and acceptance innovatively, so that consumers nationwide can use their Visa cards "anywhere at any time - conveniently, easily, and safely".

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