How credit cards are being rebuilt for the digital economy
Credit cards in Bangladesh are no longer about delayed payment alone. They now sit at the intersection of AI, identity, and daily survival in a fast-changing economy
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As paychecks struggle to keep pace with rising costs, short-term credit has emerged as a practical strategy to bridge the gap between monthly expenses and income.
In the high-stakes theatre of modern finance, the plastic rectangle—fondly known as the credit card—is undergoing a quiet but profound metamorphosis. Once a simple tool for delayed payment, it is evolving into something far more intelligent: an AI-driven financial concierge.
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In Bangladesh, where the digital shift has accelerated at breakneck speed, this evolution is not merely about convenience. It represents a deeper reconfiguration of how people interact with money, debt, and even identity. As we look toward the next decade, the credit card will cease to be a "card" at all. It will become a digital pulse—an extension of the self that anticipates needs, secures assets invisibly, and connects local spending with global commerce.
For banks, the challenge is no longer issuing plastic. It is mastering the data that flows through it.
The great surge: Bangladesh's digital leap
To understand where credit cards are heading, one must first grasp the velocity of change already underway. According to Bangladesh Bank data, card-based transactions have surged by 228 percent over the last five years. While debit cards still dominate in sheer volume, credit cards have quietly staged a strong comeback, growing by around 65 percent to reach roughly 2.5 million active users.
Yet the real shift lies not in the number of cards, but in how they are used. Central bank reports show that nearly half of all domestic credit card transactions now take place at department stores and grocery chains. This "supermarket surge" marks a decisive change in the card's DNA. Once associated with international travel, luxury shopping, or electronics, the credit card has entered the everyday grocery basket.
With inflation rising and falling and the cost of living keeping constant pressure on households, short-term credit has become a vital tool for many urban families. Using credit to bridge the gap between paydays is no longer a luxury—it has become a strategic necessity.
Geographically, the horizon is expanding too. In October 2025 alone, Bangladeshis spent more than Tk534 crore using credit cards abroad, with the United States, Thailand, India, and the United Kingdom topping the list. From SaaS subscriptions in Silicon Valley to medical check-ups in Bangkok, the credit card has become a "passport of the pocket."
The central bank's move to simplify foreign currency transactions—phasing out cumbersome manual authorisations—signals a regulatory mindset that is finally aligning with the pace of global commerce.
From passive plastic to active intelligence
While transaction growth is impressive, the true revolution is happening beneath the surface. Artificial intelligence is transforming credit cards from passive tools into active financial agents.
The credit card of 2030 will not offer generic cashback schemes. Instead, machine learning systems will analyse individual spending patterns in real time. A user who consistently buys organic food may receive targeted rewards at health-focused retailers. A frequent traveller's benefits might automatically shift from dining discounts to lounge access the moment they enter an airport zone.
This intelligence will extend beyond rewards. A card may detect that a user is browsing flights and automatically bundle travel insurance. It may suggest converting a large purchase into an interest-free EMI, anticipating pressure on monthly cash flow based on historical behaviour. This is the emerging idea of AI-driven "financial wellness"—code designed not just to facilitate spending, but to manage it.
Security, long the biggest barrier to a fully cashless society, is also being rewritten. Traditional fraud detection relies on rigid rules that often trigger false alarms. Future systems will depend on behavioural biometrics—how you hold your phone, the pressure of your thumb, your typing rhythm, and your location patterns. Even if credentials are stolen, unfamiliar behaviour will trigger instant intervention. Security becomes invisible, yet stronger than ever.
Breaking the "meagre bracket"
For decades, Bangladesh's credit card market served what critics called a "meagre bracket"—a narrow slice of high-income, formally documented earners. That model is beginning to crack.
The growth potential is enormous. More than 11.5 million Bangladeshis hold Tax Identification Numbers, yet only a small fraction have access to credit cards. Bridging the gap between being tax-visible and credit-empowered is now the industry's next frontier.
Banks are responding by moving away from one-size-fits-all affluence models toward targeted, functional products. Smart credit cards are being designed for specific groups—MPO-listed teachers, healthcare professionals, young salaried workers, and even students under 25. By recognising stable but previously overlooked income streams, banks are pulling more people into the formal financial system.
The credit card is slowly shedding its aspirational aura and becoming a practical tool of daily life.
Bangladesh Bank's push toward a "Cashless Bangladesh" suggests deeper integration ahead. Credit cards, mobile wallets, and QR payments through platforms like bKash and Nagad are likely to merge into a single ecosystem where the distinction between bank accounts and mobile financial services blurs.
The ethical frontier
Expansion, however, brings risk. As credit reaches middle- and lower-middle-income users, the danger of debt traps grows—especially in a high-interest environment with uneven financial literacy.
The future of credit must therefore be ethical. Globally, regulators are turning to "RegTech," where AI is used not only to promote spending but to restrain it. Cards may warn users when they approach unhealthy debt levels, suggest cooling-off periods for impulse purchases, or nudge spending toward sustainability through carbon-footprint tracking.
Other innovations may link credit to savings, automatically rounding up transactions into savings accounts or provident funds. The goal is to embed discipline into convenience.
The central bank remains the most decisive actor in this transition. Recent moves to ease transaction barriers, including the withdrawal of the Online Transaction Authorisation Form, reflect a willingness to modernise. Yet rising interest rates to counter inflation will inevitably raise the cost of credit.
The next regulatory battleground will be data privacy. As cards collect granular insights into daily life—where people eat, travel, and shop—the protection of that data becomes critical. Bangladesh will need robust legal frameworks that mirror global standards on consent, transparency, and the right to be forgotten.
The world in your wallet
The credit card is now one of the most sophisticated sensors we carry, quietly capturing the pulse of the economy in real time. For Bangladesh, the shift from cash to AI-driven credit is not just technological—it is social.
The supermarket surge has shown that the masses are ready for credit. Artificial intelligence is ensuring that credit, in turn, is ready for the masses. The plastic rectangle may soon disappear, but the line of credit will only become more embedded—an unseen partner in every grocery run, every cup of tea, and every international flight.
