Reducing the hassle of cash, credit cards are transforming the lifestyles of 2.8 million people

After finishing a magazine article late at night, Humayra Fima's husband went to bed. Early the next morning, when he tried to switch on his laptop, a problem arose—the device would not start. Work pressure was mounting, time was short, and it was already the end of the month, with no cash at home. In this situation, the City Alo Credit Card from City Bank became a temporary but crucial support in overcoming the crisis.

Humayra Fima (pseudonym) is a journalist by profession. Her husband writes for both local and international magazines. If work stopped, income would decline—fearing this, they decided the very next morning to purchase a new laptop. Using the credit card, they paid the full amount at once and brought the laptop home. "Even though we didn't have cash in hand at the time, work didn't stop—that was the biggest relief," Humayra said.

Beyond emergencies, credit cards have also helped them with large purchases. Recently, they liked a wardrobe from Brothers Furniture. They bought the item, priced at nearly Tk100,000, using a credit card and coordinated with the retailer to pay in monthly installments over one year. In her words, "We were able to buy a necessary item without putting much pressure on our monthly salary."

Like Humayra, Mahbub Menon, an official at Agrani Bank, also relies on credit card facilities. Although he owns a flat in Mugda in the capital, he lives with his family in the New Market area. A large portion of his monthly salary goes toward repaying car and home loans. Rent from his Mugda flat often arrives late. As a result, most of his household grocery shopping at the beginning of the month is done using a credit card.

Mahbub said, "Without a credit card, managing household expenses would have become very difficult. It is a big support for meeting necessities at the beginning of the month."

Credit cards have made family life easier for nearly 3 million upper- and middle-income customers like Humayra and Mahbub. Their use in financial transactions, online shopping, travel bookings, and emergency expenses has increased significantly.

Bangladesh's growing reliance on credit cards reflects more than rising consumption. It points to changing expectations around payment flexibility, interest-free credit and digital convenience, particularly among urban households managing tight monthly cash flows

Once viewed solely as a luxury product for the affluent, credit cards are no longer seen that way. With changing times, they have become an important financial management tool for conscious citizens in everyday life.

Credit card usage in Bangladesh

According to Bangladesh Bank data, the total number of credit card users in the country stood at 2.886 million as of the end of November 2025. Over the past four years, credit card usage has increased by 58%.

In 2021, Bangladesh had 1.833 million credit card users. This rose to 2.115 million in 2022, increased to 2.4 million by the end of 2023, further grew to 2.674 million in 2024, and finally reached 2.886 million by the end of November 2025, according to the latest available data.

Not only credit cards, but all types of card-based transactions in the country are increasing significantly. Bangladesh Bank data shows that as of December 2025, the number of debit card users stood at 47.1 million. Debit card usage has increased by nearly 61% over the past four years. At the end of 2021, the number of debit card users was 25.2 million.

Currently, 56 banks and one non-bank financial institution (NBFI) provide card services in the country. Among them, 48 banks offer credit cards, dual-currency debit cards, and prepaid card services.

Bangladesh's card-based transactions recorded strong growth between November 2024 and November 2025, reflecting rising consumer confidence and cross-border payment activity. Domestic credit card usage increased by 25.47% during this period. Cross-border credit card transactions showed minor fluctuations throughout the year but ultimately rose by 18.55% in November 2025 compared to November 2024. Meanwhile, spending by foreign nationals in Bangladesh surged sharply by 78.08%, indicating a substantial rise in inbound card-based expenditure.

In November 2025, domestic spending patterns highlighted a strong preference for retail shopping, with nearly half of all local credit card transactions taking place at department stores. Overseas transactions through credit, debit, and prepaid cards also revealed distinct patterns in value and category distribution.

Analysis of credit card transaction data for November 2025 shows that domestic transactions increased by 0.96%, rising to Tk3,504 crore from Tk3,471 crore in October 2025.

In November 2025, credit card transactions abroad totaled Tk511 crore across 792,520 transactions. Department stores accounted for 30.80% of spending, while retail outlet services contributed 17.33%, together making up nearly half of total credit card outflows.

Country-wise trends show that Bangladeshi nationals primarily used credit cards in the United States (14%), debit cards in the United Kingdom (13%), and prepaid cards in Saudi Arabia (18%). Among foreign nationals spending in Bangladesh, US cardholders accounted for the highest share at 51%. Visa remained the most widely used card brand for domestic, outward, and inward transactions in November 2025.

What credit card users say

Sakhawat Hossain Howlader, a garments exporter, has travelled to dozens of countries for business purposes. He uses credit cards from City Bank and Jamuna Bank. His combined credit limit across the two banks is around Tk800,000. Most of the time, he uses credit cards for family purchases and business expenses while abroad.

He said credit cards have made his business life much easier, but added that banks should consider increasing limits for valued customers based on demand.

From his experience, he said that while returning from the United States to Bangladesh, he could not pay the full ticket cost using his card because payments above USD 300 were not allowed at one time. He said such complexities need to be resolved. He also raised concerns about reducing credit card interest rates.

Mahfuz Ullah Babu has been using credit cards for a long time. Apart from daily groceries, all household purchases are made using credit cards. He told TBS that the biggest advantage of credit cards is the availability of interest-free credit throughout the year. However, he cautioned that credit card maintenance must be handled very carefully, as mistakes can lead to high costs.

"I have credit cards from three banks with a combined limit of around Tk500,000. I enjoy transaction convenience throughout the year. Previously, to buy expensive items, I had to arrange guarantors from the neighbourhood. Now credit cards provide that facility without requiring any guarantor."

What bankers say about credit cards

BRAC Bank Managing Director and CEO Tareq Refat Ullah Khan said the bank currently offers 12 distinct credit cards across Visa, MasterCard, and DCI platforms, designed to serve diverse customer segments and lifestyles. Each card is tailored to specific needs, ranging from travel and lifestyle privileges to cashback and premium benefits.

He noted that the MasterCard Millennial card offers international lounge access and lifestyle privileges for frequent travellers, while the Visa Cashback card caters to customers prioritising savings through enhanced cashback and merchant discounts. The bank also offers women-focused cards such as MasterCard TARA World and Visa TARA Platinum, alongside premium cards like Visa Infinite and Visa Signature.

He emphasised that BRAC Bank's strength lies in customisation, global usability, and strong value propositions aligned with evolving customer lifestyles.

Khan added that the bank's credit card portfolio serves customers across income brackets—from young professionals to affluent individuals—focusing on flexibility, security, and tangible value.

Cardholders enjoy up to 45 days of interest-free credit, instalment facilities for purchases above Tk15,000, health insurance coverage, reward points, cashback, international lounge access, dining benefits at three- and five-star hotels, lifestyle privileges, and annual fee waivers upon meeting spending thresholds.

By combining financial flexibility, lifestyle benefits, and customer-centric innovation, BRAC Bank credit cards have become a preferred choice across segments, positioning the bank ahead in Bangladesh's credit card market.

Mutual Trust Bank PLC Managing Director Syed Mahbubur Rahman said the bank offers a comprehensive suite of credit cards—Classic, Gold, Platinum, Signature, Diamond, and World—tailored to different income segments.

He said MTB credit cards combine lifestyle value with global security, offering access to the country's largest domestic lounge network and over 1,400 international lounges worldwide via LoungeKey, along with concierge services such as Meet & Greet and Pick & Drop. Customers can also manage card services instantly through the MTB Neo app. Strengthened by PCI DSS certification, MTB ensures strong data security and transaction integrity.

Rahman said high-net-worth individuals are the primary users of MTB credit cards, adding that the bank holds the highest number of Visa Signature cards in Bangladesh. Middle-income customers are served through Gold and Platinum cards, with benefits such as 0% EMI programmes, dining privileges, and lifestyle discounts.

Explaining costs, he said credit cards differ from traditional loans due to their interest-free period. Interest applies only to unpaid balances and follows Bangladesh Bank guidelines. Higher costs arise from the unsecured nature of credit cards, fraud monitoring, global security systems, 24/7 customer support, and premium benefits.

Currently, MTB serves over 170,000 active credit cardholders.

For low-income customers, MTB offers the Classic Credit Card, providing access to formal financial services and lifestyle benefits. While no separate special card is planned, the bank aims to expand outreach through agent banking and a nationwide sales force, alongside customised credit assessments.

Prime Bank PLC Deputy Managing Director M. Nazeem A. Choudhury said the bank offers Gold, Platinum, Signature, and World credit cards. Cardholders enjoy discounts, reward points, cashback, 0% EMI, contactless payments, global acceptance, and supplementary cards.

He highlighted Prime Bank's Zero Card, which removes issuance fees, annual fees, over-limit fees, MFS transfer fees, SMS alert fees, and EMI processing fees—setting a new benchmark in transparency.

Prime Bank credit cards are primarily used by young professionals and upper-middle-income customers in corporate, SME, and entrepreneurial sectors, who value convenience, digital control, and lifestyle benefits. Transparent pricing, flexible EMI, and strong acceptance networks have also attracted first-time card users.

How the credit card grace period reduces costs

When purchases are made using a credit card, payment is not required immediately. Depending on the bank, customers receive up to 45 days to settle their bill without paying interest. This is known as the grace period.

The grace period is a defined timeframe during which customers can use credit without interest if the full outstanding amount is paid. Paying within this period allows users to avoid interest, saving additional costs. This is one of the key advantages of credit card usage, helping improve financial management and providing temporary relief from debt pressure.