Credit card spending jumps 33% in May

Credit card spending in Bangladesh continued to rise despite persistently high inflation, with domestic transactions increasing by more than 33% year-on-year in May, reflecting consumers’ growing reliance on card-based payments for everyday expenses.

According to the latest report by the Bangladesh Bank’s Statistics Department, domestic credit card transactions reached Tk 42.88 billion in May, marking a 10.85% increase from April and a 33.15% rise compared with May 2025.

The central bank said nearly half of all domestic credit card spending during the month took place at departmental stores, driven by higher prices of essential commodities, attractive discounts and cashback offers from banks, the convenience of one-stop shopping, and wider card acceptance at large retail outlets.

After departmental stores, the highest spending was recorded at retail outlets, followed by utility bill payments, cash withdrawals, government services, and clothing stores, indicating that consumers are increasingly using credit cards to meet routine household expenses.

The report also showed that Bangladeshi cardholders increased their spending abroad. Overseas credit card transactions rose to Tk 4.25 billion in May, up 1.57% from the previous month.

In contrast, spending in Bangladesh using foreign-issued credit cards declined 4.95% month-on-month to Tk 3.12 billion. However, on an annual basis, foreign card spending in Bangladesh increased 12.63%, which Bangladesh Bank said reflects a positive trend in tourism and business activities.

As of the end of May, the total approved credit limit for credit cards in Bangladesh stood at Tk 420.01 billion, while outstanding balances amounted to Tk 143.65 billion, suggesting that many consumers continue to rely on credit facilities to finance personal and household expenditures.

The United States remained the largest destination for overseas spending by Bangladeshi cardholders, accounting for 17.3% of total international credit card transactions. It was followed by the United Kingdom, Thailand, Singapore, Saudi Arabia, India, Malaysia, the Netherlands, China, Canada, Australia, and Ireland.

A notable development was the sharp increase in spending in Saudi Arabia, whose share of overseas credit card transactions nearly doubled from 3.94% in April to 7.47% in May. Analysts attributed the rise to the Hajj season, increased travel, and higher spending by expatriate Bangladeshis.

Bangladesh Bank said the continued growth in card-based transactions signals the country’s gradual transition from a cash-dependent economy to a more digitally driven payment ecosystem. The central bank, however, stressed the need to strengthen digital infrastructure, enhance customer awareness, and improve cybersecurity to sustain the momentum.