Bangladesh's digital transactions jump 17% in 2024, says Visa
Dhaka accounts for 80% of Visa’s digital transactions
Bangladesh is experiencing a significant shift toward digital payments, with growing adoption of online and contactless transactions for both domestic and cross-border payments, according to Visa, a global leader in digital payments.
In 2024, spending by Bangladeshi card users on Visa's network rose by 14%, while the number of transactions increased by 17% compared to 2023.
However, this growth remains largely Dhaka-centric. Visa's annual analysis of consumer spending and digital transaction trends, released today, revealed that in 2024, around 75% of electronic consumer spending and 80% of digital transactions in Bangladesh were concentrated in the capital.
The capital city observed a 20% growth in spending, with 60% of consumers preferring online payments, according to Visa.
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Other notable cities in Bangladesh that witnessed growth in using digital payments include Gazipur, Rajshahi, Rangpur and Mymensingh.
"Both credit and debit card usage have significantly risen, with online payments as the key driver in Bangladesh," it said.
In-store payments have risen, but online transactions have been the growth catalyst.
Domestic spending was primarily fueled by e-commerce transactions, as consumers used their credit and debit cards increasingly.
On the other hand, international transactions witnessed strong growth in both in-store physical payments and online cross-border purchases using cards.
Sabbir Ahmed, Visa's country manager for Bangladesh, Nepal and Bhutan, said, "Our latest trends analysis signals Bangladesh's rapid shift towards digital and contactless payments, seen on all fronts – credit and debit cards, online and in-store payments and across domestic and international usage.
"In addition to consumer spending, the analysis also signals increased digital adoption by businesses with a 50% yearly rise in card spending. Particularly, business credit cards showed a strong surge of over 135% in both spending and the number of transactions," he said.
This is a strong indicator of how the nation's digital economy is expanding, according to Visa.
The increasingly popular tap-to-pay or contactless transactions have doubled in Bangladesh, increasing from 6% of the Visa total to 13%. Of that, domestic contactless payments alone have tripled, buoyed by both credit and debit contactless cards.
Travel services, discount stores, drugstores and healthcare spending led domestic spending, while cross-border payments were driven by education, business-to-business payments, food and grocery and government services.
Countries where Bangladeshi Visa card users spent the most
A deeper dive into cross-border spending by Visa shows that more than 90% of Bangladeshis' spending was concentrated in 20 countries. The top five countries — India, USA, UK, Thailand and UAE – contributed to more than half of the cross-border spending.
The top five countries where Bangladeshis spent the most in-store last year are India, Thailand, the USA, UAE and Singapore.
India still leads in cross-border spending by Bangladeshi Visa card users, despite a 10% decline in 2024.
Occupying the second spot, Thailand saw an over 20% rise in spending by Bangladeshis, primarily due to higher medical tourism. Visa observed 25% growth in healthcare spending in Thailand, which was 35% in pharmacy expenses.
