US Tops Overseas Credit Card Spending by Bangladeshis After Political Shift in 2024

Although the remittance trend from the US did not remain consistent, the country still ranks highest in overseas spending through Bangladeshi credit cards.

According to a recent report by Bangladesh Bank, Bangladeshi credit card holders spent Tk 470 crore abroad in March this year, up from Tk 377 crore in February. More than half of that spending occurred in the United States, Thailand, Saudi Arabia, Singapore, and the United Kingdom, totaling Tk 241 crore.

United States Remains the Top Spending Destination

In March, the highest share of overseas credit card spending — 13 percent — took place in the United States, amounting to Tk 61 crore.

Thailand ranked second, where Bangladeshis spent Tk 50 crore, accounting for 10.64 percent of total overseas spending. Saudi Arabia followed closely with Tk 49 crore (10.44 percent), while spending in Singapore reached Tk 41 crore (8.74 percent). Expenditures in the United Kingdom totaled Tk 40 crore (8.83 percent), followed by India with Tk 36.5 crore (7.78 percent), Malaysia with Tk 35 crore (7.44 percent), and the Netherlands with Tk 24 crore (5.24 percent).

India Loses Its Longtime Dominance

India had traditionally been the leading destination for overseas Bangladeshi credit card spending. In March 2024, Bangladeshis spent Tk 503 crore abroad through credit cards, of which 21 percent — or Tk 106 crore — was spent in India.

The United States ranked second at the time with Tk 63 crore in spending. Other major destinations included Thailand (Tk 35 crore), the United Arab Emirates (Tk 50 crore), Saudi Arabia (Tk 35 crore), Singapore (Tk 33 crore), and the United Kingdom (nearly Tk 32 crore).

Banking sector insiders say that after the political changes in Bangladesh in August 2024, India tightened visa issuance for Bangladeshi citizens. As a result, travel and medical visits to India declined significantly. Within six months, India fell to sixth place in terms of Bangladeshi credit card usage abroad, while Thailand emerged as a popular alternative destination for travel and healthcare.

Department Stores Lead Spending Categories

Despite changes in destination countries, spending patterns have remained largely unchanged. Department stores continue to account for the largest share of overseas credit card expenditures.

In March, 32 percent of overseas spending — around Tk 150 crore — was made at department stores. Bangladeshis also spent Tk 76 crore at retail outlets, Tk 57 crore on transportation, Tk 50 crore on medicines, Tk 39 crore on business services, and Tk 31 crore on ready-made garments abroad.

Domestic Credit Card Use Also Surges

According to Bangladesh Bank, banks in the country had issued 2.708 million credit cards by March. Total transactions through these cards during the month amounted to Tk 4,726 crore.

Domestic credit card usage rose by more than 21 percent in March compared with February. Nearly 45 percent of local credit card spending was made at department stores, while 12 percent went toward purchasing ready-made garments.

The central bank report shows that domestic credit card spending increased from Tk 3,422 crore in February to Tk 4,342 crore in March. Of that amount, Tk 1,947 crore was spent at department stores, Tk 551 crore at clothing outlets, Tk 484 crore at retail stores, Tk 360 crore on utility bills, Tk 277 crore on cash withdrawals, and Tk 211 crore on medicines, among other expenses.

Eid Shopping and Inflation Drive Higher Spending

Banking sector officials said the increase in March spending was largely driven by Eid-ul-Fitr shopping. Banks also offered promotional campaigns and discounts to encourage credit card use during the festive season.

At the same time, persistently high inflation has forced many consumers to rely more heavily on credit cards to manage their expenses, industry insiders added.