Bank card usage in Bangladesh has expanded rapidly over the past five years, with the value of transactions made through debit, credit and prepaid cards rising by 103 per cent. The number of cards in circulation has also increased by around 96 per cent over the same period, although domestic spending through credit cards declined in August.
Bangladeshis spent Tk 9,870 crore abroad using locally issued bank cards in August, while foreign cardholders spent Tk 2,490 crore in Bangladesh. This means spending by Bangladeshis overseas was almost four times the amount spent in the country using cards issued abroad.
The figures were published in Bangladesh Bank’s report on card-based transactions. The report provides an overview of the growth in card usage, domestic credit card expenditure and spending patterns involving locally and internationally issued cards.
Card numbers and transaction values nearly double
According to the central bank, Bangladesh had 2.70 crore debit, credit and prepaid cards at the end of September 2021. By the end of August this year, the number had risen to approximately 5.30 crore, representing growth of around 96 per cent.
The increase varied significantly by card type. Debit card numbers grew by 69 per cent over the five-year period, while credit cards increased by 59 per cent. Prepaid cards recorded the most dramatic expansion, rising by 803 per cent.
The value of monthly transactions also climbed substantially. In September 2021, transactions through these three types of cards totalled Tk 24,561 crore. By August this year, the figure had reached Tk 49,770 crore, an increase of 103 per cent.
The figures indicate a significant expansion in the use of electronic payment methods in Bangladesh. Cards are increasingly being used for purchases, service payments and other financial transactions. However, the growth in card usage alone does not establish how much cash-based activity has declined.
Domestic credit card spending falls in August
Despite the longer-term expansion, spending through credit cards within Bangladesh declined in August.
Bangladesh Bank data show that domestic credit card transactions totalled Tk 4,089.30 crore during the month, down from Tk 4,325 crore in July. The month-on-month decline was 5.44 per cent.
Department stores and large retail outlets accounted for the largest share of domestic credit card expenditure. Spending in this category reached Tk 1,969 crore in August, representing 48.14 per cent of total domestic credit card spending. The corresponding figure for July was Tk 2,176 crore.
Other major categories included retail outlets, where spending amounted to Tk 518 crore, and utility payments, including electricity and gas bills, which accounted for Tk 442 crore. Customers spent Tk 284 crore at pharmacies and medicine shops, Tk 196 crore at clothing stores and Tk 123 crore on transport.
Purchases of goods and services accounted for 93.37 per cent of total domestic credit card expenditure in August. Cash withdrawals represented 6.43 per cent, while money transfers accounted for 0.21 per cent.
The figures show that credit cards were used primarily for purchases and payments rather than cash withdrawals or transfers.
Overseas spending through credit cards reaches Tk 5,050 crore
Bangladeshis spent a total of Tk 9,870 crore abroad in August using credit, debit and prepaid cards issued in Bangladesh.
Credit cards accounted for Tk 5,050 crore of the total, while debit cards were used for Tk 4,220 crore in overseas spending. Prepaid card expenditure amounted to Tk 600 crore.
Spending through credit cards abroad fell from Tk 5,260 crore in July to Tk 5,050 crore in August.
Department stores were the largest overseas spending category for Bangladeshi credit cardholders, accounting for 30.29 per cent of expenditure. Retail outlets represented 17.89 per cent, transport accounted for 12.09 per cent, and pharmacies and medicine shops made up 11.86 per cent.
The United States was the leading destination by share of overseas credit card expenditure, accounting for 17.16 per cent. Thailand followed with 10.86 per cent, ahead of the United Kingdom at 9.75 per cent, India at 9.12 per cent and Singapore at 7.98 per cent.
These figures reflect the distribution of card spending across countries, although they do not establish the precise reasons for individual transactions or distinguish fully between travel-related purchases and other overseas payments.
Debit and prepaid card spending also increases
Overseas spending through debit cards rose to Tk 4,220 crore in August, up from Tk 4,010 crore in July.
The United Kingdom accounted for the largest share of debit card expenditure abroad, at 14.19 per cent. The United States followed with 13.43 per cent, while India accounted for 11.76 per cent.
Prepaid card spending overseas also increased, rising from Tk 580 crore in July to Tk 600 crore in August.
India was the largest destination by share for prepaid card expenditure, accounting for 18.71 per cent. The United States ranked second at 14.94 per cent, followed by Saudi Arabia at 10.21 per cent.
The figures show that all three card categories contributed to the overall volume of overseas spending, although their relative importance differed. Credit cards accounted for the largest amount, followed by debit cards and prepaid cards.
Foreign card spending in Bangladesh rises
Spending in Bangladesh through cards issued abroad also increased in August.
Transactions made using foreign-issued cards totalled Tk 2,490 crore during the month, compared with Tk 2,340 crore in July. This represented month-on-month growth of 6.27 per cent.
Compared with August 2025, expenditure through foreign-issued cards in Bangladesh rose by 34.66 per cent in August this year.
Department stores accounted for the largest share of spending by foreign cardholders, representing 35.25 per cent of the total. Cash withdrawals made up 23.76 per cent, while transport accounted for 12.99 per cent and clothing shops for 9.17 per cent.
By country of issuance, cards issued in the United States accounted for 21.29 per cent of total transactions made in Bangladesh using foreign cards. Cards issued in the United Kingdom represented 10.81 per cent, while those issued in India accounted for 8.61 per cent.
The increase in foreign card transactions points to a rise in spending through international payment instruments within Bangladesh. However, the figures alone do not identify the specific factors behind the increase or establish how much of the spending was associated with tourism, business travel or other activities.
Credit card limits exceed Tk 431 billion
Bangladesh Bank’s report also provides details of the credit facilities available through the country’s banking system.
At the end of August, the authorised credit limits associated with credit cards issued by 47 scheduled banks and one non-bank financial institution totalled Tk 43,108 crore. The outstanding amount owed by cardholders stood at Tk 14,482 crore.
The authorised limit represents the maximum credit available to cardholders, rather than the amount they have necessarily borrowed or spent. Outstanding balances, by contrast, indicate the amount owed to the issuing institutions at the reporting date.
Credit cards provide customers with access to short-term borrowing for purchases and payments, but responsible use depends on managing expenditure and meeting repayment obligations. Failure to repay outstanding balances on time can result in additional interest and charges, increasing the cost of borrowing.
Digital payments still face structural challenges
Despite the substantial growth in card numbers and transaction values, Bangladesh continues to face several obstacles to a more cashless economy.
Bangladesh Bank identified continued reliance on cash, limitations in digital infrastructure, gaps in financial literacy, cybersecurity concerns and transaction costs as challenges to the wider adoption of card-based payments.
For electronic payments to become more accessible, customers need reliable services, convenient payment facilities and confidence that their financial information is secure. Measures to prevent card fraud, unauthorised transactions and the misuse of personal financial data are also essential.
Financial education can help consumers understand card charges, repayment requirements and security precautions. At the same time, improving digital infrastructure and addressing transaction costs could make electronic payments more practical for both consumers and businesses.
The latest figures highlight the growing role of bank cards in Bangladesh’s financial system. Monthly card transactions have more than doubled in value over five years, while the number of cards in circulation has nearly doubled. Yet the decline in domestic credit card spending in August shows that growth is not uniform across all categories or periods.
Sustaining this expansion will require more than increasing the number of cards. Reliable infrastructure, stronger consumer protection, effective fraud prevention and greater public confidence in digital payments will remain important to the development of a more accessible and secure cashless economy.