Bangladesh is witnessing a remarkable transformation in how its citizens pay their bills, shop and transact - the shift from cash to cards is accelerating at a pace few had anticipated. According to central bank data, new bank cards have multiplied, and card-based transactions have grown by more than three times in the past five years. What was once a modest payment channel has become a mainstream part of the economy.
Dramatic Rise in Card Issuance: In August 2020 the combined number of debit, credit and prepaid cards in Bangladesh stood at approximately 22.2 million (2 crore 22 lakh). By the end of July 2025, that figure had surged to roughly 56.9 million (5 crore 69 lakh) - a growth of around 2.5 times.
Within the categories: Debit cards recorded the largest growth - about 120 percent increase. Credit cards grew by about 94 percent. Prepaid cards also posted significant gains, reflecting rising adoption across broader segments of society.
Bankers say this expansion reflects not just greater card issuance, but also growing acceptance of card payments for everyday use: salary disbursements, ATM withdrawals, retail purchases, bill payments and online transactions.
Transaction Volumes Explode: Parallel to the rise in card numbers, transaction volumes have soared. In 2020 total card-based transactions (across debit, credit and prepaid) stood at Tk 14,384 crore. By July 2025, that total had reached approximately Tk 47,817 crore - more than triple the 2020 figure.
Among them: Domestic credit card spending in July registered Tk 3,084 crore, of which roughly Tk 1,508 crore was spent at department stores. International card usage by Bangladeshis using credit cards in July touched Tk 479 crore abroad, with the U.S. being the top destination. Debit cards used abroad in July recorded highest usage in the UK, followed by the U.S., Ireland, China and India. Prepaid cards similarly show strong usage in the UK market.
Drivers: Urbanisation, Digitisation, And Convenience: Bankers and payment industry officials explain the growth with several drivers: Expansion of Point-of-Sale (POS) terminals, online payment gateways and mobile banking platforms has widened card acceptance.
Rising urban middle class and higher household income levels are generating greater demand for non-cash transaction options, particularly credit cards for regular purchases. Salaries are increasingly being credited to bank accounts, making debit cards the default day-to-day payment instrument. The shift toward a less-cash economy is supported by regulatory push from the Bangladesh Bank (BB), including legislation and infrastructure upgrades. In fact, a recent BB report titled “An Overview of Cards Usage Pattern” noted that cards are increasingly replacing cash in key urban centres.
What the Data Shows: Issuance of debit, credit and prepaid cards grew by over 140 percent in the last five years. Total transaction volume via these cards increased by around 228 percent over the same period. In the August 2025 report of Daily Industry, overseas credit-card usage continued to rise, indicating the global footprint of Bangladeshi cardholders. These figures mark a structural shift in payment behaviour - once dominated by cash, Bangladesh is steadily moving toward plastic and digital options.
Expert Insight: Not Just Growth, But Transition: Financial sector analysts say that the surge is not purely about volume - it signals a deeper economic transition. According to Dr. Farida Hasan, a fintech researcher in Dhaka, “Card usage reflects more than convenience; it reflects trust in bank accounts, digital systems and retail acceptance. This is a leap forward in financial inclusion.”
She added that as more merchants accept cards, especially in semi-urban areas, the network effect strengthens: consumers prefer cards because they can use them widely; banks issue more cards because usage grows.
Another key voice, Mr. Rezaul Karim, retail-banking head at a major private bank, observed: “Debit cards dominate because salaries, cash withdrawal and daily purchases use them. Credit cards are growing fast among city-dwellers - department stores, utilities, travel. The big story though is prepaid cards - accessible for younger people, lower-income segments and cross-border spenders.”
Opportunities and Risks: The growth of card-based payments opens up important opportunities for Bangladesh’s economy: Reduced reliance on cash can improve transparency and help clamp down on informal transactions. Increased digital records of payments can strengthen data for credit scoring, consumer protection, and financial stability. Greater convenience can accelerate e-commerce, retail expansion and service sector growth.
Cross-border spend shows Bangladeshis connecting globally, boosting card-issuer networks and merchant acquisition abroad. Yet, growth also brings risks and challenges: Cybersecurity: As volumes rise, banks and card networks must safeguard against fraud, data breaches and unauthorised access. Digital literacy: Many users still lack understanding of card usage, PIN safety and fraud prevention, particularly in rural areas. Infrastructure gap: Card acceptance in smaller towns and rural areas remains uneven-a potential barrier to full plastic-money adoption. Consumer debt: The expansion of credit card usage, if unchecked, could spur household indebtedness, especially among new users unfamiliar with credit management.
What Needs to Happen: To sustain and deepen the card usage trend, several strategic actions are recommended: Expand merchant infrastructure: Ensuring POS terminals, QR acceptance and easy onboarding of merchants in underserved areas will sustain usage growth. Promote financial literacy: Education campaigns for cardholders - how to use, how to protect, how to manage - are essential to build safe usage. Strengthen regulatory frameworks: Protecting consumer interests, regulating fees, ensuring interoperability between banks and card networks. Enhance cross-border integration: As cards are increasingly used overseas by Bangladeshis, banks must streamline global acceptance, conversion rates and fraud prevention. Monitor credit card growth carefully: Balance between facilitating credit adoption and preventing over-leverage by consumers.
The Bigger Picture for Bangladesh: The rise in cards is more than a banking story-it ties into Bangladesh’s broader ambition of becoming a digital economy. As the country battles infrastructure constraints, supply-chain stress and informal sectors, a thriving card-payment ecosystem offers a beacon of formalisation and financial modernisation.
In the words of a senior central bank official (quoted in a payment-industry journal): “The rising use of plastic money is playing a big role in digital transactions. So, cash transactions will go down.” As Bangladesh forges ahead with digital payment systems, including the National Payment Switch Bangladesh (NPSB) and other rails, cards remain a critical bridge between the traditional cash economy and the emerging digital norm.
With card issuance more than doubled and transaction volumes tripling in five years, Bangladesh’s payment habits are evolving rapidly. This surge is a positive signal of financial inclusion, consumer confidence and digital adoption. But to turn this acceleration into durable transformation, banks, regulators, merchants and consumers must together ensure that cards remain safe, accessible and meaningful-not just a convenience, but a strategic tool for the nation’s digital future. For an economy of 180 million people, this transformation matters. The more payments move into formal, traceable channels, the more the economy can grow, be taxed effectively, and be planned sustainably- and the more the lives of ordinary people can be lifted.
