Bangladesh is experiencing a significant shift towards digital payments, with a marked increase in both domestic and cross-border transactions. According to Visa’s 2024 report, spending by Bangladeshi card users rose by 14%, and the number of transactions increased by 17% compared to 2023. Despite this growth, the majority of digital transactions remain concentrated in Dhaka, with the capital city accounting for 75% of consumer spending and 80% of digital transactions.
Visa’s analysis highlights that Dhaka experienced a 20% increase in spending, with 60% of consumers preferring online payments. Other cities, including Gazipur, Rajshahi, Rangpur, and Mymensingh, also saw growth in digital payments, though the capital remains the dominant hub for digital transactions.
Visa noted that both credit and debit card usage have risen significantly, with online payments being the primary driver of this growth. E-commerce transactions were a major contributor to domestic spending, while international transactions saw strong growth, driven by both in-store physical payments and online cross-border purchases.
Sabbir Ahmed, Visa’s country manager for Bangladesh, Nepal, and Bhutan, said, “Bangladesh is rapidly shifting towards digital and contactless payments, with significant growth seen in credit and debit cards, online and in-store payments, and cross-border transactions.” He added that businesses have also adopted digital payments, with a 50% increase in card spending, especially in business credit cards, which saw a 135% surge in spending and transactions.
The use of tap-to-pay or contactless payments has also increased, with the percentage of total Visa transactions in Bangladesh more than doubling from 6% to 13%. Domestic contactless payments alone tripled, driven by both credit and debit contactless cards.
In cross-border transactions, more than 90% of spending by Bangladeshi Visa cardholders occurred in 20 countries, with the top five being India, the USA, the UK, Thailand, and the UAE. India remained the leading destination despite a 10% decline in 2024, while Thailand saw over a 20% increase, primarily due to medical tourism.
Visa’s report signals that Bangladesh’s digital economy is expanding rapidly, driven by increasing digital adoption among consumers and businesses alike.
