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Domestic spending via credit cards in Bangladesh has experienced a sharp upward trajectory, recording an increase of nearly 45 percent over the span of a single year, according to the latest credit card usage report released by Bangladesh Bank.
Central bank data reveals that in July of last year, domestic credit cardholders spent BDT 3,084 crore on purchases and utility bill payments. By June of this year, that figure jumped to BDT 4,461 crore—marking an absolute increase of BDT 1,377 crore within a twelve-month period. Economists and financial sector specialists attribute this sharp escalation to persistent double-digit inflation and escalating living costs, which are compelling consumers to rely on high-interest credit lines to fund essential household expenses.
A sectoral analysis indicates that department stores remain the dominant category for domestic card usage. In June, department store spending accounted for more than half (51 percent) of total domestic transactions, totaling BDT 2,273 crore out of the BDT 4,461 crore aggregate. Retail outlets registered the second-highest volume at BDT 471 crore. Together, department stores and retail outlets made up 62 percent (BDT 2,744 crore) of all domestic credit card expenditures in June, up from BDT 2,550 crore in May—an increase of nearly BDT 200 crore in retail shopping within just one month.
Financial analysts note that credit cards have become an immediate liquidity bridge for middle- and fixed-income households struggling to balance real income stagnation against rising living costs. Dr. Khondaker Golam Moazzem, Research Director at the Centre for Policy Dialogue (CPD), pointed out that while expanding cashless transaction infrastructure and attractive promotional bank offers have driven card adoption, a significant portion of users are turning to credit debt out of sheer necessity to cover emergency living expenditures.
Key Highlights of the Report:
Retail Dominance: Approximately 62 percent of total domestic card spending was concentrated in department stores and retail shopping outlets.
Overseas Spending: Cross-border credit card spending by Bangladeshi nationals reached BDT 553 crore in June, climbing from BDT 425 crore in May—a single-month expansion of BDT 128 crore.
Top Foreign Destinations: The United States ranked as the top destination for overseas credit card spending, with Bangladeshis spending BDT 85 crore in June, followed by Thailand at BDT 58 crore.
Cardholder Base: As of late June, the total number of active credit cards in Bangladesh stood at 2,750,513, registering an addition of roughly 8,500 new cards compared to May's figure of 2,742,049.
https://thedailyexpress.news/news/business/1f197fe8-6cdd-6600-a519-175d1926386a