Use of credit cards jumps domestically, overseas: BB

Credit card use in Bangladesh recorded a sharp rise in October, with both domestic transactions and spending by Bangladeshis overseas increasing significantly compared to the previous month, says the Bangladesh Bank.

According to its latest report, transactions within the country, expenditures by Bangladeshis traveling overseas and spending by foreigners within Bangladesh all showed an uptrend, reports UNB.

The central bank's data reveals that Bangladeshis spent Tk 5.34 billion using credit cards abroad in October, up from Tk 4.94 billion in September. This marks a significant increase of approximately Tk 0.4 billion within a single month.

The United States remained on top in credit card expenditures by Bangladeshis.

A breakdown of the top countries includes- USA Tk 0.72 billion, Thailand Tk 0.56 billion, UK Tk 0.52 billion, Singapore Tk 0.45 billion, India Tk 0.32 billion and Saudi Arabia Tk 0.31 billion. Other notable spending was recorded in Malaysia, the Netherlands, Canada, the UAE, China and Australia.

There was also a boost in credit card usage by foreign nationals visiting or residing in Bangladesh.

In September, they spent Tk 1.75 billion via credit cards, which rose to Tk 1.99 billion in October-an increase of roughly Tk 0.24 billion.

The US citizens topped the list of foreign spenders in Bangladesh, accounting for Tk 0.44 billion in October. They were followed by citizens of the United Kingdom Tk 0.21 billion and India Tk 0.18 billion.

The domestic credit card market also showed robust growth. Transactions within the country rose from Tk 33.95 billion in September to Tk 34.71 billion in October. This reflects an increase of Tk 0.76 billion in domestic consumer spending via credit cards in just 30 days.

Economic analysts and the Bangladesh Bank report suggest that this upward trend is a strong indicator of increasing consumer confidence and heightened dynamism in both local and international financial transactions.

The rise in overseas spending specifically points towards a recovery in international travel and global commerce participation by Bangladeshi cardholders, said the report.