Credit card transactions in Bangladesh saw a notable decline in July 2024 across all categories as a report from Bangladesh Bank pointed to weakened consumer activity; both domestic and international transactions decreased.
Domestic credit card transactions within Bangladesh dropped by 13.74%, amounting to Tk 23.42 billion in July 2024, down from Tk 27.15 billion in June. Similarly, international transactions by Bangladeshi credit cardholders fell to Tk 4.75 billion in July, a 9.45% decline from Tk 5.24 billion the previous month.
The report also indicated a sharp 23.02% decrease in transactions using foreign-issued credit cards in Bangladesh, falling from Tk 1.76 billion in June to Tk 1.36 billion in July.
Transactions in neighboring India also experienced a downturn. Credit card spending in India fell to Tk 732 million in July 2024 from Tk 921 million in June, with transactions declining from 105,074 to 83,217.
The United States accounted for the largest share of international transactions by Bangladeshi cardholders, with 16.75% of the total. Other significant markets included India (15.41%), Thailand (10.52%), the UK (8.29%), and Singapore (7.20%).
In terms of sector-specific data, transactions at department stores saw a steep drop, falling to Tk 11.96 billion in July 2024 from Tk 13.93 billion in June. Other sectors, such as retail outlets, utilities, transportation, and government services, also declined.
However, transactions in the pharmaceutical sector and professional services increased in July, indicating a shift in consumer priorities.
The report highlighted that the majority of credit card transactions in Bangladesh were made using VISA cards (72.24%), followed by Mastercard (17.74%) and AMEX (9.86%).
Bangladesh Bank continues to collect transaction data from 44 scheduled banks and one non-banking financial institution, providing a comprehensive look at consumer spending patterns amid the country’s ongoing economic challenges.
