The international expenditures by Bangladeshi credit cardholders in March this year reached Tk503.5 crore, up from Tk499.1 crore in the previous month.

Of the foreign expenses in March, India alone accounted for the highest portion, totalling Tk108.4 crore, according to a report by the Bangladesh Bank.

Recently published, the central bank’s report titled “An Overview of Credit Card Users’ Spending Patterns Within and Outside the Country” mentions that 44 scheduled banks and one non-bank financial institution (NBFI) in the country are currently issuing cards to clients.

According to the data, credit card transactions within the country increased by 16.78% in a month, reaching Tk2,987.5 crore in March, compared to Tk2,558.1 crore in February.

However, credit card transactions made by foreign entities but utilised within Bangladesh saw a 5.6% decline to Tk226.6 crore in March from Tk240 crore in February.

Outward transactions

The country-wise breakdown of foreign transactions shows that the majority of credit card transactions occurred in India, constituting 21.06%.

The rest of the cross-border transactions were distributed across various countries: USA 12.58%, UAE 9.89%, Saudi Arabia 6.98%, Thailand 6.92%, Singapore 6.57%, UK 6.33%, Canada 5.07%, Malaysia 3.85%, China 3.08%, Ireland 2.92%, Australia 2.49%, and other countries 12.26%.

In March, these cardholders predominantly utilised their cards abroad at departmental stores, accounting for 24.21% of transactions.

Other notable categories included retail outlet services 15.46%, drugstores and pharmacies 13.65%, cash withdrawals 12.07%, clothing 8.35%, business services 7.48%, and various other categories 18.78%.

Domestic transactions

In transaction percentages across various categories, some experienced significant increases while others saw marginal changes.

There was a notable surge in clothing transactions, a slight decrease in business services transactions, and minor fluctuations in other categories.

Credit card transactions at departmental stores increased to Tk1,381.1 crore in March from Tk1,269 crore in February. The clothing category experienced a substantial rise to Tk344.1 crore in March from Tk150 crore in February, thanks to the purchasing during the Eid-ul-Fitr festival.

Additionally, retail outlet services, transactions related to utilities, cash withdrawals, drugstores and pharmacies, transportation, fund transfers, professional services, and government services noted slight increases in March.

Card usage by foreigners

In March, among all foreign nationals, US citizens conducted the highest 24.93% of transactions in Bangladesh through credit cards, as indicated by the central bank report.

Other significant contributions were made by UK nationals 11.81%, India 10.27%, Singapore 3.90%, Canada 3.88%, Japan 3.84%, China 3.51%, UAE 3.11%, Germany 2.66%, Australia 2.64%, Italy 2.02%, South Korea 1.85%, Hong Kong 1.76%, and various other countries 23.81%.