Foreign credit card transactions: 18% spent in the US

The trend of Bangladeshis using credit cards abroad has increased, with the most significant rise recorded in the United States.

According to the latest data from Bangladesh Bank, Bangladeshi credit cardholders spent a total of Tk525.90 crore abroad in July this year.

This represents a 9.71% increase compared to the same period last year.

Notably, 17.71% of all international credit card transactions occurred in the US alone—meaning nearly Tk18 out of every Tk100 spent overseas went to the US.

However, Bangladesh Bank's updated report reveals a 5.05% drop in total foreign credit card spending in July compared to June's figure of Tk552.70 crore.

Country-wise, Thailand ranked second after the US in July, accounting for 11.68% of total international transactions.

This was followed by the UK (10.35%), Singapore (7.54%), India (6.69%), and Malaysia (6.55%). Canada accounted for 4.74%, the Netherlands 4.17%, China 4.01%, and Australia 3.49%.

The bulk of foreign credit card expenditure went toward purchasing goods and services.

In July, department stores accounted for 31.33% of total transactions.

Retail outlet services followed at 17.18%, transportation at 12.50%, medicine/pharmacies at 11.44%, clothing stores at 7.96%, and business services at 7.29%.

Bank officials attributed the growth in foreign card usage to increased overseas travel and an improved dollar supply.

Foreign travel declined during the political instability of 2024. However, card-based international transactions have rebounded as travel for medical, educational, and leisure purposes has picked up.

Additionally, improved dollar availability in banks has normalized transaction flows.

Card usage limits abroad have also expanded.

Bangladesh Bank previously allowed citizens to spend up to $12,000 annually via credit cards overseas, a limit that was recently raised to $18,000.

The US also dominated foreign spending via debit and prepaid cards, accounting for 13.25% of overseas debit card usage and 16.37% of prepaid card usage in July.

Across all three card types combined, the US accounted for 15.81% of total foreign spending.

Meanwhile, domestic credit card usage surged by 40.24% in July. Industry experts point to high inflation as a primary driver.

Former Bangladesh Bank chief economist Mustafa K. Mujeri noted that persistent inflationary pressure has led many individuals to rely on credit cards for temporary relief—warning, however, that debt-driven spending could pose major future risks.

According to Bangladesh Bank, the total number of debit, credit, and prepaid cards jumped 97% between August 2021 and July this year, while overall card transactions grew by 108% over the same period.

By the end of July, Bangladesh had 46.3 million debit cards, 2.7 million credit cards, and 9.1 million prepaid cards in circulation.

Key Figures Summary