Borrowing power: How credit cards reflect a country’s economic strength
While cash and mobile money dominate daily life in many developing countries, credit cards continue to define consumption in richer ones. The gap highlights deeper structural differences in financial systems
Jeremy (30) and Mylene (29) came to Bangladesh to provide skill development training to some young girls in Lalmonirhat. Rubaya (29) and Sharmi (26) are their Bangladeshi colleagues. for Jeremy and Mylene, two French nationals, it is voluntary. For Rubaya and Sharmi, it is livelihood.
In the weekends, the four youths go to Rangpur, just to relive the urban life. the French duo tap their credit cards to buy groceries, then tap again for coffee. Meanwhile, Sharmi and Rubaya pay cash for the same basics, or use mobile money for a bill. During long holidays, without much drama, Jeremy and Mylene tap their credit card and book a flight to Bali. Sharmi and Rubaya have to calculate, how much money they have to send home, whether an AC bus to Dhaka would be a luxury or they would try to fit in a non AC one. When an emergency hits, they reach out to a close friend for cash, or a family member.
The four of them use credit in real life, but Jeremy and Mylene use it with a credit card.
This plastic chip does not necessarily determine the gap between 'advanced economies' and ''poor economies''. It is about where formal credit is more accessible. How lenders decide, who is a "safe borrower" and what kind of borrowing a country's financial system supports. But the usage of this plastic card does denote the size of the economy. Here's how:
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- Credit history infrastructure
If you're a repayor, banks will lend you. Advance economies have mature credit infrastructure and lots of data trails (utility bills, prior cards, home rent, conveyance bills, what not?). This makes mass credit card lending easier and less risky.
- Greater access to formal financial accounts
Without a bank account people can't get credit cards. In Bangladesh, for instance, account ownership has been booming, yet the World Bank data says it's 43.28% as of 2024. But having a bank account doesn't automatically translate into ''getting a credit line''.
- Income stability and formal employment
Card issuers always rely on stable paychecks. In high informal economy settings, lenders struggle to verify income, so they avoid unsecure credit.
- Merchant networks and trust
Advanced economies have widespread card terminals and well-established dispute systems. Consumers are highly protected here.
- Technological Advancement
In strong digital infrastructures, credit card proliferation is smooth. High internet access, reliable electricity, secure payment system and widespread merchant terminals make card use seamless and routine.
- Financial literacy
Advanced economies have a long-standing consumer practice. Consumers are well enlightened on interest rates, billing cycles, and credit scores. Greater financial awareness engenders both confident consumers and active lenders.
The divide between rich and poorer economies is visible in one simple statistic: in high-income countries, roughly 57% of adults own a credit card. Globally, the average is closer to 22%, and in many low-income economies, the share remains in single digits (World Bank, 2021).
World Bank's Global Findex based indicator says credit card owner rose from 49.03% in 2011 to 57.42% in 2021. In Canada, about 82.74% of people aged 15+ had a credit card in 2021. On the contrary, in Bangladesh, the overall usage of credit card ownership is 0.62%. Among the 121 countries in the world, the credit card usage was 22.26% in the same year.
Credit cards are deeply integrated into the daily lives in advance economy countries such the United States, United Kingdom, Canada, Japan, and South Korea.
The Feds says, total credit card balances in the US reached $1.28 trillion by the end of 2025. These credit cards are used widely for retail purchases, travel, dining, subscriptions, healthcare payments, and emergency expenses.
According to UK Finance, 2026; credits cards process hundreds of millions of transactions monthly, totaling tens of billions of pounds in spending.
What do people in rich economies use credit cards for?
It's almost the same as the poor economies. But the volume and frequency make the difference.
- Everyday spending: groceries, restaurants, fuel
- Online commerce: e-commerce platforms, digital subscriptions
- Travel and hospitality: flights, hotels, car rentals
- Short term borrowing: carrying balances for a few months
- Building credit history: essential for mortgages and auto loans
Interestingly, even in these countries, credit cards are not used to buy houses directly. Mortgages are used to finance homes, auto loans or leases.
Compared to house prices, credit limits for credits cards are too small. High merchant fee is another consideration here. Card acceptance does cost money, when it's a huge purchase, it can become overwhelming. Credit cards are short term, high interest debts, mortgages are long-term, lower rate debt.
Credit cards do appear on big purchases, i.e, booking fees, small deposits, furniture after moving in, repairs, etc.
In rich economies, it's always convenience first, borrowing second. Here, credit cards function as cash flow management tools that make life smooth between paychecks.
What happens in poorer economies?
Bank accounts have multiplied across developing economies over the past decade. But increasing bank accounts does not necessarily mean an increasing credit line. Bank accounts are opened to collect savings from the clients. In regions, where informal work is prevalent, banks lend consciously. This is a sign of an ebbing credit history. Since income is lower, card machines are not everywhere. Daily life, here, runs mostly on cash, debit cards, mobile money, or loan from family or microfinance groups.
Credit cards, meanwhile, tend to gather in the hands of the urban middle class; business owners, frequent travelers, and salaried professionals. Credit cards roam around in air-conditioned super markets, organized retail chains, travel booking, utility counters, and hospitals. It's always the structured, formal corners of the urban areas. In open air markets the card is not seen, it belongs to the places where systems are predictable.
The pattern suggests that cards are used for structured, formal-sector transactions, not daily informal market purchases.
Debt as a share of the economy
In high- income economies, household debt can exceed 60%-100% of GDP. For low-income countries, the ration is far lower. This does not imply, people are better off in low-income countries. It shows how financial systems are less developed and credit penetration is lower.
Poorer economies are still evolving to shape a consuming credit, whilst for advance economies, it is a growth engine.
A tale of two swipes
Imagine the family of Jeremy or Mylene's. They pay nearly everything by card. Their card builds credit history. Occasionally, they may carry a balance, but they consider it as manageable.
Not everyone in Rubaya or Sharmi's family has a credit card. They would only use it when, payday is near but they are running short of money, or just for any emergency big buys.
In some countries, a credit card is as essential as a household key. People tap it for coffee, groceries, ride shares, online subscriptions, airline tickets and even tax payments. In others, a credit card is still a prestige object used occasionally, carefully, often only by the urban middle class.
