Credit card transactions in Bangladesh reached Tk4,089 crore in August, marking a 30.03% year-on-year increase from Tk3,144 crore in August 2025. However, monthly spending dipped 5.44% compared to July's Tk4,325 crore, according to a recent Bangladesh Bank report.
Bangladeshis spent nearly Tk987 crore abroad in August using credit, debit and prepaid cards issued in Bangladesh. By contrast, foreign-issued cards were used for around Tk249 crore worth of transactions in Bangladesh, meaning Bangladeshis spent almost four times as much abroad as foreign cardholders spent in the country.
The Bangladesh Bank, in the report released on Monday (19 October), said the shift from cash towards digital payments was gaining pace as the use of credit, debit and prepaid cards expanded.
"Cash transactions have been dominating Bangladesh's consumer payment ecosystem for many years, but their prevalence has shown a consistent decline in recent years," the central bank said in its report.
"To accelerate the adoption of electronic payment methods, the government and Bangladesh Bank have implemented a series of targeted policy measures and regulatory reforms."
Card numbers rise 96% in five years
The number of debit, credit and prepaid cards issued in Bangladesh rose 96% between September 2021 and August 2026, while the total value of transactions made through the cards increased by 103%, according to Bangladesh Bank data.
At the end of September 2021, the country had 2.42 crore debit cards, 17.62 lakh credit cards and 10.26 lakh prepaid cards, bringing the total to around 2.70 crore.
By August 2026, the number of debit cards had risen to around 4.01 crore, credit cards to 28.05 lakh and prepaid cards to 92.70 lakh, taking the combined total to about 5.29 crore.
Prepaid cards recorded the sharpest growth, increasing 803% over the five-year period. Debit cards rose 69% and credit cards 59%, although debit cards remained by far the most widely used type.
The total value of card transactions more than doubled, from Tk24,561 crore in September 2021 to Tk49,770 crore in August 2026.
Department stores lead credit card spending
Department stores accounted for the largest share of domestic credit card spending in August, with Tk1,969 crore, or 48.14% of total transactions. The figure stood at Tk2,176 crore, or 50.31%, in July.
Bangladesh Bank said the high use of cards at department stores could be linked to purchases of everyday goods, promotional offers from banks and wider acceptance of cards. It noted, however, that these were possible explanations rather than findings from a separate statistical analysis.
Goods and services accounted for 93.37% of domestic credit card spending in August, while cash withdrawals made up 6.43% and fund transfers 0.21%.
The figures show that shopping remained the main use of credit cards, although a significant share of transactions involved cash withdrawals.
Bangladeshis spend Tk987cr abroad
Bangladesh-issued credit, debit and prepaid cards were used for Tk987 crore in transactions abroad in August. Of this, Tk505 crore was spent through credit cards, Tk422 crore through debit cards and Tk60 crore through prepaid cards.
Overseas credit card transactions fell slightly to 823,150 in August from 830,086 in July, while spending declined to Tk505 crore from Tk526 crore.
Department stores accounted for the largest share of overseas credit card spending, at 30.29%, followed by retail outlets at 17.89%, transport at 12.09% and medicine and pharmacies at 11.86%.
Credit cards were also used for business services, clothing, government and professional services, utility bills and cash withdrawals.
The United States was the biggest destination for credit card spending, accounting for 17.16% of the total. Thailand followed with 10.86%, the United Kingdom 9.75%, India 9.12% and Singapore 7.98%.
Debit card spending abroad, meanwhile, increased to Tk422 crore in August from Tk401 crore in July. Department stores accounted for 20.24% of spending, followed by government services at 17.12%, business services at 13.99% and cash withdrawals at 12.92%.
The United Kingdom was the biggest destination for debit card spending, with 14.19%, followed by the United States at 13.43% and India at 11.76%.
Spending through prepaid cards abroad also rose, reaching Tk60 crore from Tk58 crore in July. Government services accounted for 20.60% of spending, cash withdrawals 17.53%, department stores 16.36% and business services 14.39%.
India was the biggest destination for prepaid card spending, accounting for 18.71%, followed by the United States at 14.94%, Saudi Arabia at 10.21% and the United Kingdom at 9.47%.
Foreign card spending rises 34.66%
Foreign-issued cards were used for Tk249 crore worth of transactions in Bangladesh in August, up 6.27% from Tk234 crore in July and 34.66% from August 2025.
Department stores accounted for 35.25% of foreign card spending in Bangladesh, followed by cash withdrawals at 23.76%, transport at 12.99% and clothing stores at 9.17%.
Cards issued in the United States accounted for the largest share of foreign card transactions in Bangladesh, at 21.29%, followed by the United Kingdom at 10.81% and India at 8.61%.
As of the end of August, 47 scheduled banks and one non-bank financial institution had a combined approved credit card limit of Tk43,108 crore. The outstanding amount owed by cardholders stood at Tk14,482 crore.
Bangladesh Bank said several factors continued to constrain the expansion of cashless payments, including the country's cash-based economy, limitations in digital infrastructure, gaps in financial literacy, cyber security concerns, lack of trust in digital systems, transaction costs and limited smartphone use.
The central bank said greater use of cards could support financial inclusion and the expansion of the digital economy, while stressing the need to strengthen fraud prevention, customer protection and user awareness as card-based transactions continue to grow.