Credit card transactions in Bangladesh reached Tk4,089 crore in August 2026, a 30.03% year-on-year increase from Tk3,144 crore in August 2025, according to a Bangladesh Bank report released on October 19. The central bank said the shift from cash toward digital payments was accelerating across the country.
"Cash transactions have been dominating Bangladesh's consumer payment ecosystem for many years, but their prevalence has shown a consistent decline in recent years," the Bangladesh Bank said in the report, titled "An Overview of Card Usage Patterns Within and Outside Bangladesh".
Bangladeshis spending four times more abroad than foreigners in Bangladesh
Bangladeshis spent nearly Tk987 crore abroad in August using credit, debit and prepaid cards issued in Bangladesh, according to The Business Standard. Foreign-issued cards were used for around Tk249 crore worth of transactions in Bangladesh—meaning Bangladeshis spent almost four times as much abroad as foreign cardholders spent in the country.
Credit cards accounted for Tk505 crore of outbound spending, debit cards Tk422 crore and prepaid cards Tk60 crore. The United States was the biggest destination for credit card spending abroad at 17.16% of the total, followed by Thailand at 10.86%, the United Kingdom at 9.75%, India at 9.12% and Singapore at 7.98%. For debit cards, the United Kingdom led at 14.19%, followed by the United States at 13.43% and India at 11.76%.
Card issuance nearly doubled in five years
The total number of debit, credit and prepaid cards issued in Bangladesh rose 96% between September 2021 and August 2026, according to The Daily Star. The total value of transactions more than doubled over the same period, from Tk24,561 crore to Tk49,770 crore.
At the end of September 2021, Bangladesh had 2.42 crore debit cards, 17.62 lakh credit cards and 10.26 lakh prepaid cards, totalling around 2.70 crore. By August 2026, debit cards had risen to around 4.01 crore, credit cards to 28.05 lakh and prepaid cards to 92.70 lakh, totalling about 5.29 crore.
Prepaid cards recorded the sharpest growth, increasing 803% over the five-year period. Between December 2022 and August 2026 alone, prepaid cards rose 174%, debit cards grew 37% and credit cards 33%. Of the country's 61 scheduled banks and 35 non-bank financial companies, 56 banks and one non-bank financial company provide card services.
Department stores dominate domestic spending
Department stores accounted for 48.14% of domestic credit card spending in August, with Tk1,969 crore. Goods and services made up 93.37% of domestic credit card spending, while cash withdrawals accounted for 6.43% and fund transfers 0.21%.
The total credit limit sanctioned through credit cards by 47 scheduled banks and one non-bank financial company stood at Tk43,108 crore as of August 2026, according to The Daily Star. Outstanding claims on credit card users amounted to Tk14,482 crore.
Rural areas and security fears block cashless shift
Despite rapid growth, significant obstacles remain to a fully cashless economy. According to The Daily Star, the Bangladesh Bank report identified limited digital infrastructure in rural areas, low financial literacy, cybersecurity concerns and lack of trust in digital platforms as major barriers. The country's strong cash-based culture, informal economy, high transaction costs and limited smartphone access further complicate the transition.
"Limited digital infrastructure, especially in rural areas, and low financial literacy hinder cashless adoption," the Bangladesh Bank report said. Many people remain reluctant to use cards because of fear and lack of knowledge, despite being eligible to do so, it added.
The government and Bangladesh Bank have implemented policy measures and regulatory reforms to accelerate adoption of electronic payment methods. The central bank expects card usage to continue growing alongside economic development, rising living standards and increased international transactions.