Business Report :
Use of credit cards by Bangladeshis both locally and internationally saw a decline in May 2024 compared with that in April earlier this year.
According to Bangladesh Bank data published on Monday, domestic credit card transactions dropped by 1.47 per cent to reach Tk2,742 crore in May compared with Tk2,783 crore in April.
Besides, international transactions outside the country reached Tk456 crore in May, showing a decrease of 9.94 per cent from Tk506.9 crore in April.
There was a 14.67 per cent decline in transactions through credit cards issued by foreign entities but used within Bangladesh, dropping to Tk169.8 crore in May from Tk199 crore in April.
Such a transaction was Tk181 crore in December 2023.
Departmental stores were the primary destination for credit card transactions, accounting for 51 per cent of transactions in May, according to the report.
Apart from departmental stores, about 13.73 per cent of the transactions took place at retail outlets, 8.94 per cent in utilities, 7 per cent in cash withdrawal, 5.51 per cercent in drug and pharmacies and 4 per cent in clothing.
Additionally, VISA cards were the most commonly used, representing 71.84 per cent of transactions, followed by MasterCard 17.74 per cent and the remaining transactions took place through using other types of cards in May.
About 26.55 per cent of the transactions made outside the country took place in departmental stores.
In terms of cross-border transactions, India accounted for 16.75 per cent, the United States 16.62 per cent, Thailand 8.38 per cent, the United Arab Emirates 7.96 per cent, Singapore 7.31 per cent, the United Kingdom 7.68 per cent and Saudi Arabia 2.84 per cent.
In February, credit card transactions within Bangladesh by foreign nationals witnessed a fall.
Of the transactions by foreign nationals, about 23.93 per cent of the transactions took place using credit cards issued by the US, followed by India 11.76 per cent, the United Kingdom 8.81 per cent, Singapore 5 per cent, Japan 4.22 per cent, Australia 3.85 per cent, China 3.79 per cent and the United Arab Emirates 3.62 per cent.
