The volume of transactions through automated teller machine (ATM) cards in Bangladesh has increased by 166% over the past five years, reflecting a significant shift towards digital payments in the country. The number of card issuances, which includes debit, credit, and prepaid cards, has also risen by 142%, according to data from Bangladesh Bank (BB).
The central bank attributed the rapid growth of card-based transactions to the success of its cashless banking initiative, which has contributed to the ongoing digital transformation of the nation’s financial system. The surge in card usage signals a broader move towards greater financial inclusion in Bangladesh.
As of January 2020, the number of debit cards stood at 18.6 million. By December 2024, this figure had nearly doubled to 39.6 million, marking an increase of 113%. Credit cards, meanwhile, saw a 75% jump, reaching 27 million from just 1.5 million. Prepaid cards saw a massive rise of 1,660%, soaring from 43,000 to 7.5 million.
The total value of card transactions has also seen remarkable growth, increasing from Tk 16,808.07 lakh crore in 2020 to Tk 44,691.3 lakh crore by the end of 2024.
Industry insiders said that the significant increase in the use of debit, credit and prepaid cards indicates a clear shift in customer behavior towards cashless transactions. As consumers are adopting digital payment services, banks are focusing on improving card security, offering innovative products and increasing payment convenience across the country.
With the increase in card payments, there is an improvement in online transactions of e-commerce businesses. This trend highlights the need for smooth and secure payment services to increase consumer trust in digital commerce.
Entrepreneurs in the technology sector said that the number of plastic cards currently issued is still not sufficient. Card-based transactions in Bangladesh are relatively low. There are various obstacles from government agencies in credit card issuance, such as making it mandatory to submit income tax filing certificates, which is hampering the growth of cards.
Industry insiders also point out that some banks mainly issue cards to wealthy or financially well-off customers, which limits access for a large population and contributes to the digital divide. “Regulatory issues need to be eased for the expected growth of credit cards.” Because small shops are still unable to accept card payments.
The statistics highlight the increasing preference for cashless transactions among consumers and merchants, signaling a major shift towards digital financial services. This transformation began in 2012, when Bangladesh Bank embarked on an ambitious journey to modernize the country’s financial system through a variety of debit, credit and prepaid cards.
The initiative aimed to integrate Bangladesh with the global digital economy by using information technology to establish a cashless banking system. To facilitate this transformation, the central bank’s Payment Systems Division formulated basic guidelines and a legal framework, laying the foundation for safe and efficient card-based transactions.
Bd-pratidin English/Tanvir Raihan
