Banking officials say credit cards now enable customers to instantly purchase air tickets, book hotels, buy tour packages and settle restaurant bills. Many banks are also offering special discounts at selected hotels, resorts and travel agencies.

Additional features such as instalment (EMI) payment options for travel costs, travel insurance coverage, secure international transactions and reward point systems have made credit cards even more attractive. For outbound travellers, internationally branded credit cards, alongside dollar prepaid cards, are providing an extra layer of convenience and security.

Speaking to the Daily Sun, Bangladesh Bank spokesperson and Executive Director Arief Hossain Khan said the country’s credit card market has expanded rapidly compared with just a few years ago, when only a handful of traditional banks offered such services. He noted that even Islamic banks have now entered the segment, reflecting its growing acceptance. According to him, rising financial capacity among the population has also contributed to this surge, as more customers are opting for credit cards and using them actively, leading to a significant increase in both the number of cardholders and overall transactions.

Credit card transactions surge by 227% in five years

Cards are already one of the most popular modes of payment globally, often described as “plastic money”. Bangladesh is catching up quickly. Despite some reluctance among segments of the population – mainly due to fear and lack of awareness – the number of card users has surged. A five-year review by Bangladesh Bank reveals rapid growth across debit, credit and prepaid cards. In August 2020, the country had 1,99,94,649 debit cards, 15,85,038 credit cards and 5,93,825 prepaid cards.

By July 2025, these numbers had risen to 4,40,82,562 debit cards, 29,79,489 credit cards and 98,25,359 prepaid cards – reflecting a combined growth of 157% across all three card types, while credit card usage alone rose by 88%. Transaction volumes have also jumped sharply, from Tk1,43,843 million in August 2020 to Tk4,78,171 million in July 2025 – a 232% increase in just five years. Within this, credit card transaction volumes rose from Tk1,074 crore to Tk3,508 crore, a 227% increase.

Banks expanding card services

Of the 62 scheduled banks and 35 non-banking financial institutions (NBFIs) in the country, 56 banks and one NBFI currently offer card services. Among them, 48 banks provide credit cards, dual-currency debit cards and prepaid card facilities. Banking insiders note that competition among banks to expand card services is intensifying, particularly as younger generations increasingly demand modern financial solutions for both domestic and international needs.

In terms of brand preference, Visa dominates the Bangladeshi market, accounting for 74.37% of transactions, followed by MasterCard at 15.33% and American Express at 10.26%. Other networks such as UnionPay, Diners Club and JCB hold smaller market shares but remain active players.

A significant portion of the country’s cards is concentrated in a few banks. In the credit card sector, The City Bank and BRAC Bank are currently the leaders. Following them, Standard Chartered, UCBL, Eastern Bank, Dutch-Bangla Bank, National Bank, SouthEast Bank and Bank Asia are listed among the top 10 banks.

Outward spending patterns reveal global travel trends

Bangladeshis are also using credit cards widely for overseas transactions. In July 2025, outward credit card spending totalled Tk4,793 million across 7,29,162 transactions. A sectoral breakdown shows that cardholders spent the most at overseas department stores (29.87%), followed by retail outlets (17.50%), pharmacies (11.23%), transportation services (10.95%), business services (7.50%), clothing (7.42%) and other sectors (15.53%).

Country-wise data reveal that the United States accounted for the largest share of Bangladeshi credit card transactions abroad at 16.57%, followed by the UK (11.99%), Thailand (10.84%), Singapore (8.20%), Malaysia (7.97%), India (5.83%), Canada (5.28%), the Netherlands (4.15%), UAE (3.64%), Australia (3.42%), Saudi Arabia (3.30%), Ireland (2.93%) and other destinations (15.88%).

The reporter can be reached at: [email protected]