Bangladeshis’ Credit Card Use Highest in US, India Slips Sixth

The United States has become the top destination for spending with credit cards issued by Bangladeshi banks, overtaking India, which has dropped to sixth place due to a decline in visa issuance.

According to an April report by Bangladesh Bank, debit cards issued by Bangladeshi banks are most frequently used in China, while prepaid cards are predominantly used in the United Kingdom. The data covers only international transactions made outside Bangladesh.

The central bank’s report, based on data from 56 banks and one financial institution, tracks credit card usage by Bangladeshis abroad, foreign card use within Bangladesh, and domestic transactions.

In April this year, Bangladeshis spent Tk 4.68 billion abroad using credit cards, a 29.5% increase compared to March, but notably lower than April last year’s Tk 5.06 billion. Bank officials attribute the decline primarily to the freezing of bank accounts belonging to politicians, businesspeople, and professionals linked to the previous government, limiting their ability to use cards abroad. Additionally, stricter visa issuance rules for countries like India, Middle Eastern nations, Thailand, and Malaysia have further reduced overseas card transactions.

Credit card spending in India dropped sharply to Tk 310 million in April, down 68.4% from Tk 980 million the same month last year.

Among foreign credit card expenditures in April, the United States led with nearly Tk 660 million, followed by Thailand (Tk 470 million), Singapore (Tk 450 million), and the United Kingdom and Malaysia (Tk 430 million each).

For debit cards, overseas spending totaled Tk 3.10 billion in April, with China leading at Tk 640 million, followed by the United States (Tk 360 million), India (Tk 290 million), the United Kingdom (Tk 250 million), and Ireland (Tk 240 million).

Prepaid card usage abroad amounted to Tk 840 million in April, primarily in the United Kingdom (Tk 180 million), the Netherlands (Tk 100 million), the United States and India (Tk 90 million each), and Canada (Tk 70 million).

These figures illustrate shifting trends in international spending by Bangladeshis and the impact of regulatory changes and visa restrictions on overseas transactions.