The trend in usage of credit-card in all categories in Bangladesh showed a noticeable decline in August 2024.
The above information was found from Bangladesh Bank data.
The economic activity across the country was also following a downward trajectory.
The Bangladesh Bank (BB) data revealed that domestic transactions within Bangladesh observed a slight decrease of 0.45 percent, which was Tk 23.32 billion compared to Tk 23.42 billion in July 2024.
Simultaneously, international transactions outside the country was Tk 3.72 billion in total in August, which also showed a decrease of 21.52 percent from Tk 4.75 billion in the previous month of July.
In the same way, transactions made with credit cards issued by foreign entities but utilized within Bangladesh decreased to Tk 1.11 billion in August from Tk 1.36 billion in July, indicating a decrease of 18.07 percent.
Data shows a vast majority (72.11 per cent) of credit card transactions were done using VISA.
In addition, 17.76 percent used Mastercard and 9.98 percent swiped AMEX cards.
The remaining transactions occurred through other types of cards in August.
The central bank data said inward credit card usage witnessed a decrease in August compared to that of the preceding month.
Credit cards issued by other countries but used within Bangladesh recorded a maximum amount of transactions in cash withdrawals, which was 28.08 percent of all transactions in August.
Additionally, department stores made up 25.57 percent. On the other hand, transactions in transportation constituted 17.74 percent.
The remaining sectors collectively contributed 28.61 percent to the total amount of transactions.
Analyzing country-wise cross-border transactions, the BB data disclosed that the majority of transactions occurred in the USA, accounting for 20.17 percent.
The rest of such transactions were distributed in India (13.57 per cent), the UK (9.25 per cent), Thailand (8.77 per cent), Singapore (8.09 per cent), Canada (6.82 per cent), Malaysia (4.55 per cent) , the UAE (3.88 per cent), Australia (3.05 per cent), the Netherlands (2.88 per cent), Ireland (2.68 per cent), Saudi Arabia (2.53 per cent) and other countries (13.77 per cent).
According to the BB data, credit cardholders engaging in cross-border transactions mostly utilized their cards abroad at department stores, accounting for 26.59 percent of transactions.
Other notable categories included retail outlet services (16.98 per cent), drugs and pharmacies (12.41 per cent), transportation (9.83 per cent), business services (7.43 per cent), clothing (7.10 per cent) and others (19.65 per cent).
Source: The Financial Express
Bd-pratidin English/Lutful Hoque
