Foreign currency transactions on credit cards decreased in a month but domestic transactions increased. The most money spent on credit cards abroad is at department stores, retail stores and pharmacies. And Bangladeshi users use the most credit cards in India for spending outside the country. It is followed by the United States.
This information has emerged in a recent study by the central bank on the use of credit cards issued in Bangladesh. The study highlights the usage of credit cards in the country and abroad. Apart from this, the information of the foreign credit cards used within the country has also been highlighted in the study.
Bangladesh Bank’s Statistics Department has prepared this research report using vast data of 43 banks and 1 non-bank financial institution in the country that issue credit cards.
40 thousand 363 crores taka was transacted through the card in the last August. In the previous month July which was 36 thousand 900 crores taka. Transactions increased by 8.5 percent during the month.
Credit card transactions decreased by 3.1 percent during the period under discussion. 2,674 crore transactions were made using credit cards in July. But in August it decreased to 2 thousand 591 crores. That is, the transaction has decreased by 83 crore taka.
However, despite the decrease in credit card transactions, overall card transactions have increased. In the month of August, the total transaction using all types of cards was Tk. 41 thousand 21 crores. 37 thousand 670 crore taka was traded in the previous month of July. According to that, card transactions have increased by 8.89 percent during the month.
And in terms of transactions outside the country, the most credit cards have been used in India. Its amount is 17.62 percent, in terms of money which is 73 crore 70 lakh taka. In addition, other countries in the transaction include 16.32 percent in the United States, 9.51 percent in Thailand, 7.69 percent in the United Kingdom, 7.61 percent in Singapore, 6.71 percent in Canada, 6.49 percent in the United Arab Emirates, 5.40 percent in Malaysia, and 2.89 percent in Saudi Arabia. 2.81 percent in the Netherlands, 2.73 percent in Ireland, 2.19 percent in Australia and 12.2 percent in other countries.
According to the review, 34 thousand 456 crores taka was transacted using debit card in the last month of July. It increased to 37 thousand 803 crores in August. That is, transactions using debit cards have increased by 3 thousand 347 crores or 9.71 percent during the month.
And compared to the month of July, transactions on pre-paid cards increased by 18.64 percent in August. Last July, transactions using pre-paid cards amounted to Tk. 300 crore. In August, it increased to Tk. 356 crore.
Bankers say that considering the risk of carrying cash with them, many customers feel comfortable using cards. It takes extra time to go to the branch and transact online. Apart from this, people’s interest in card transactions is increasing now due to the convenience of any transaction outside the banking hours.
Debit, credit and pre-paid card issuance in the country also increased in August this year. The number of debit cards issued in the country last July was 3 crore 26 lakh 66 thousand 507. In August it increased to 3 crore 31 lakh 56 thousand 910. And in August, the number of credit cards stood at 22 lakh 94 thousand 491. It was 22 lakh 68 thousand 371 in the previous month. Apart from this, the number of pre-paid cards in July was 44 lakh 9 thousand 712. It increased to 45 lakh 90 thousand 842 in August.
Banks and financial institutions are offering various discounts and facilities to popularize credit card services. Free service for the first year, additional charges waived every year on a certain number of transactions, reward point facilities, special discounts on products of various brands, hotel stays and meals, various offers. The amount of credit card issuance is increasing day by day. But its transactions are decreasing due to various reasons including the dollar crisis.
Analyzing the types of credit cards used within the country, it can be seen that the use of credit cards has increased in the country’s department stores. 50 percent i.e., half of the total credit card transactions are done in departmental stores. Apart from this, 12.34 percent in retail stores, 9.16 percent in utilities, 7.97 percent in cash withdrawals, 5.95 percent in medicines and pharmacies, 4.51 percent in clothing purchases, 3.44 percent in fund transfers, 3.37 percent transportation, 2.18 percent business services and 1.9 percent credit card transactions were made for other needs.
Analyzing the type of card in the transaction, it can be seen that most transactions were done through Visa card during this time. Its amount is 77.45 percent. It is followed by Master Card, which accounts for 14.049 percent of transactions through this card. Apart from this, the remaining 8.6 percent transactions were done through other cards.