Digital payments for fast and secure transactions this Eid

With Eid-ul-Fitr just around the corner, streets all over Bangladesh are bustling with people who are either out shopping for gifts or groceries as well as those travelling home for the holiday.

Needless to say, this means that large volumes of cash are changing hands, which is a security risk considering how pickpockets often target those in crowded places such as supermarkets and retail outlets.

In addition, carrying copious amounts of cash is cumbersome while spending might get quickly out of hand for failing to keep track of one's expenditure.

Luckily, digital payments are becoming increasingly popular as the method offers fast, secure and hassle-free transactions while also recording expenses in real-time, doing away with the need to carry cash.
 

Clients can save money in the form of cashbacks and discounts when using credit cards for Eid shopping, helping them make the most of the occasion.

— Tasnim Hossain Head of cards at Eastern Bank

As such, people's lifestyles have changed significantly over the years as the domestic digital ecosystem has evolved amid the rise of e-commerce while the growing inflow of remittance also played a part.

But seeing as digital payments are a relatively new trend in the country, various banks provide numerous offers year-round in a bid to attract clients.

This is especially true during Ramadan, the biggest shopping season of the year, as people are always looking for the best deals on their purchases.

"Clients can save money in the form of cashbacks and discounts when using credit cards for Eid shopping, helping them make the most of the occasion," said Tasnim Hossain, head of cards at Eastern Bank Limited.

Besides, cardholders have the added benefit of earning reward points while shopping," he told The Daily Star.

It also goes without saying that digital payments are beneficial in normal times as well.

"Digital payment options give consumers the opportunity to pay in a secured, fast and hassle-free manner," said Mohammad Razimul Haque Razim, head of cards at The City Bank Limited.

"This is also the most reliable and seamless mode of payment," he added.

Another important aspect to consider is that as going cashless means saving paper currencies and reduces costs in this regard while also helping the country more towards a green and sustainable future.

Also, the use of credit cards can be incredibly helpful for people travelling abroad as the currency of choice can be endorsed against the card itself, meaning that purchases can be made abroad with a single swipe.

In a bid to attract new clients, Mutual Trust Bank (MTB) has introduced many acquisition campaigns with first year annual fee waivers and other promotions, said Md Abu Bokar Siddik, head of cards of MTB.

If a client so requires, they can create a standing order to pay the outstanding balance on their credit card in equated monthly instalments to avoid high interest charges, said Md Abed Ur Rahman, head of cards at Midland Bank Limited.

"If the minimum dues are cleared regularly, then they can avoid late payment fees as well," he added.

About 3.58 crore debit, credit and prepaid cards were issued in Bangladesh as of January 2023 with the total value of transactions made through these cards standing at Tk 39,601 crore, according to Bangladesh Bank data.

Card issuances were 25 per cent higher that month compared to the same period the previous year.

However, card issuance saw around 119 per cent growth compared to the last four years.

"Incentives are necessary to nudge people into using digital payment methods, such as cards and mobile financial services (MFS), so that Bangladesh can achieve its goal of becoming a cashless society," said Syed Mohammad Kamal, country manager of MasterCard.

He recommended the government offer a 5 per cent incentive to boost card transactions.