Card transactions hit all-time high

Transactions through cards hit an all-time high in June thanks to increased economic activities during Eid-ul-Azha as consumers enthusiastically embraced the spirit of the occasion by making purchases.

ATM, POS, CRM and e-commerce transactions through cards rose 15 percent month-on-month to Tk 48,590 crore in June, according to the latest data of Bangladesh Bank.

Transactions through debit cards increased by 16 percent to Tk 45,384 crore at the same time.

"We have witnessed a surge in spending in retail shops through debit cards. Eid has an impact on this spike," said Md Mahiul Islam, head of retail banking at BRAC Bank.

According to him, debit card transactions have increased in recent times.

On the other hand, spending through credit cards saw a slight drop.

Credit card transactions dropped by 0.34 percent month-on-month in June to Tk 2,583 crore.

During Eid-ul-Azha, funds are primarily directed towards purchasing livestock for sacrifice, favouring cash transactions due to cultural practices, said Syed Mohammad Kamal, country manager for Bangladesh at Mastercard.

"So, we didn't see an increase in spending in shops through credit cards. Besides, people are not spending on lifestyle products in recent times," he said.

"But in July, credit card spending increased substantially as many were travelling after Eid," Kamal added.

Prepaid card spending stood at Tk 41 crore in June, up from Tk 35 crore in May.

Similarly, e-commerce transactions through cards increased by Tk 122 crore to Tk 1,391 crore in June, as per central bank data.

According to industry people, there is a correlation between the surge in card-based e-commerce spending and the timing of Eid.

There are 3.21 crore debit cards, 22 lakh credit cards and 42 lakh prepaid cards issued so far, central bank data shows.