Bangladesh outbound card spending stays far above foreign card use in local market

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Bangladesh outbound card spending gap

Highlights

Bangladeshis' outbound card spending totaled Tk987 crore in August, far exceeding inbound foreign card use at Tk249 crore, reflecting persistent outflow dominance.
Domestic credit card transactions in August dropped 5.44% month on month to Tk4,089.30 crore, but retail and utility payments segments posted transaction growth.
Plastic money usage in Bangladesh expanded sharply over five years, with total card numbers up 96% and transaction volumes up 103%, led by prepaid card growth.

Central bank data shows August spending split

As reported by The Business Standard, citing Bangladesh Bank, card transactions by Bangladeshis abroad edge up from Tk985 crore in July to Tk987 crore in August, while foreign nationals' card spending inside Bangladesh rises 6.27% month on month from Tk234 crore to Tk249 crore.

Outbound expenditures in August include Tk504.60 crore through credit cards, Tk422.10 crore via debit cards and Tk60.10 crore using prepaid cards. For overseas credit card use, the U.S. remains the top destination, accounting for 17.16% of total foreign credit card transactions, followed by Thailand, the UK, India and Singapore.

For debit cards, the UK accounts for the largest share at 14.19% of total transactions, while India leads prepaid card usage at 18.71%. The gap between outbound and inbound card spending underlines the growing scale of international card-based expenditures by Bangladeshi users.

Domestic transactions dip as card adoption expands

Within Bangladesh, domestic credit card transactions decline 5.44% in August to Tk4,089.30 crore from Tk4,324.80 crore in July. Department stores account for the largest share at 48.14%, followed by retail outlets at 12.67%, utility bill payments at 10.80%, pharmacies and drug stores at 6.94%, and cash withdrawals at 6.43%.

Even with the overall decline, some segments post growth, including retail outlets, where transactions rise from Tk477.90 crore to Tk518.30 crore, alongside increases in utility payments, pharmaceuticals, clothing and transportation. By the end of August, the total approved credit limit on credit cards stands at Tk43,108 crore, with outstanding loans at Tk14,482 crore.

Over a five-year period, the central bank's data shows broad growth in plastic money usage. Debit cards increase from 2.42 crore at the end of September 2021 to about 4 crore by August 2026, credit cards rise from 17.63 lakh to 28.05 lakh, and prepaid cards jump from 10.27 lakh to 92.71 lakh. Total card numbers rise 96% over the period, while transaction volumes grow 103%, with prepaid cards recording the fastest expansion.

Bangladesh Bank Executive Director and spokesperson Arif Hossain Khan says the central bank is implementing measures to discourage cash transactions and promote digital payments, including expansion of interoperable payment tools such as the Bangla QR code system.

Our earlier report on Philippine e-commerce payment habits noted that cash-on-delivery still makes up a significant share of online transactions even as QR codes and bank transfers surge. It highlighted that limited payment choice can lead to abandoned purchases, while central bank data showed digital payments rising to a majority share of retail payment volume—underscoring an uneven but ongoing shift toward cashless methods.

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