Bangladeshis credit card spending shifts

Gazi Anowar :

A significant transformation in the overseas spending patterns of Bangladeshi credit card users is pointing toward greater financial diversification and increased domestic economic activity.

The most recent data from Bangladesh Bank shows a sharp decline in credit card transactions in India, but a parallel rise in usage in the United States, United Kingdom, and Saudi Arabia – and a substantial surge in local transactions.

In March 2025, total international spending by Bangladeshi credit card users dropped to Tk 361 crore, down from Tk 385 crore in February and Tk 503 crore a year earlier. The most dramatic change was seen in India, where spending plummeted by over 72% compared to March 2024.

This shift is largely attributed to visa restrictions and strained diplomatic ties.

Meanwhile, spending in the US, UK, and Saudi Arabia has increased, with the US leading at Tk 57.40 crore in March, followed by the UK at Tk 36 crore, and Saudi Arabia at Tk 35 crore.

Experts view this realignment as a positive sign of Bangladeshis reducing overdependence on a single country and tapping into global opportunities.
Dr. Ahsan Habib, an economist and financial analyst at BRAC University, explained:
“Diversifying international spending reflects Bangladesh’s growing integration with the global economy. More people are now travelling or sending children abroad for higher education or business in countries like the US and UK. It’s a reflection of rising middle-class capacity and broader global exposure.”

M Zakir Hosssain Khan, Chief Executive, Change Initiative, a sociopolitical analyst, echoed this sentiment: “Moving away from one dominant destination like India also helps reduce geopolitical vulnerability. This transition encourages stronger bilateral ties with other nations and potentially opens doors for expanded trade and cooperation.”

While foreign usage dropped slightly, domestic credit card usage saw a significant rise – increasing by 26.52% from February’s Tk 2,968 crore to Tk 3,755 crore in March 2025. Consumers spent more across sectors like retail, healthcare, transport, and government services, indicating growing consumer confidence and the expansion of cashless transactions in everyday life.

“This increase in local usage shows that digital financial inclusion is working,” said Arif Hossain Khan, Executive Director and spokesperson for Bangladesh Bank. “People are increasingly relying on cards for essentials and services, which reduces the risks of an informal cash economy.”
Positive Impacts for Bangladesh Strengthened Domestic Economy: Increased credit card use in Bangladesh supports local businesses, retail markets, and the service sector, helping to formalize the economy.

Digital Transformation: The surge in card usage suggests faster adoption of digital banking tools, aligning with the government’s Smart Bangladesh vision.

Financial Resilience: A reduced dependency on one country for medical, educational, or shopping purposes helps mitigate risks from political disruptions or policy changes.

Global Engagement: Increased spending in the West and Middle East shows deeper integration of Bangladeshis into international education, tourism, and workforces, boosting remittance and knowledge exchange.

Policy Evolution: Experts believe this trend may push for smarter and more globally diversified foreign policy and trade strategies, helping Bangladesh build stronger ties beyond South Asia.

As the spending patterns of Bangladeshis shift beyond India and become more globally distributed, the positive ripple effects are being felt both at home and abroad. From boosting the domestic economy to strengthening ties with new international partners, this transformation reflects a more financially empowered and globally connected Bangladesh.