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Dhaka Tribune

Credit card spending increased 4.09% in August

Major spending occurred at department stores, followed by retail, utilities and cash withdrawals

Update : 15 Oct 2023, 09:05 PM

In August, credit card spending in Bangladesh reached Tk243 crore, a 4.09% increase from July's Tk234 crore, as per Bangladesh Bank data. Almost half of these transactions occurred in departmental stores, driven by rising food and non-food costs, which have also contributed to a living cost crisis with 9.92% inflation in August.

Credit cards offer convenience for immediate cash needs, with up to 45 days for interest-free repayment and the flexibility to use them domestically and internationally. Interestingly, while domestic credit card transactions increased, international transactions saw a decline.

However, while domestic transactions have increased, credit card usage for foreign transactions has decreased.

Foreign credit card holders spent over Tk218 crore in Bangladesh in August, up 14.11% from July. In contrast, Bangladeshi credit card holders spent over Tk417 crore abroad, marking an 18.35% decrease compared to July.

According to Professor Dr Md Salim Uddin, chairman of the Executive Committee of Islami Bank Bangladesh Limited, the increase in credit card spending aligns with the overall price hike. 

Major spending occurred at department stores (49.99%), followed by retail (12.34%), utilities (9.16%), and cash withdrawals (7.97%).

In July, Visa cards dominated the market with 73.45% of transactions, while MasterCard accounted for 16.20%. In August, US nationals led foreign credit card transactions with 25.34%, followed by the UK (12.39%) and India (10.92%), among others.

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