Credit card transactions increased significantly at home and abroad in December last year as Bangladesh continued to embrace digital financial solutions.

In December last year, credit card transactions amounted to Tk 3,947 crore, according to the latest data from Bangladesh Bank.

The figure was Tk 3,437 crore in the same period of the previous year.

Industry insiders said the surge reflects both an increase in economic activity and evolving consumer behaviour, demonstrating the growing importance of digital transactions in the country's financial landscape.

Central bank data showed that the issuance of debit, credit, and prepaid cards surged by an impressive 142 percent over the past five years, while the total transaction volume through these cards rose by 166 percent.

Credit card usage within Bangladesh peaked in March 2024 before experiencing a steady decline until August.

However, a recovery trend began in September, culminating in a notable rise in December.

In December 2024, nearly half (49 percent) of all domestic credit card transactions occurred at department stores, indicating strong consumer spending in the retail sector.

International transactions showed minor fluctuations throughout the year. However, spending by foreign nationals within Bangladesh saw a sharp decline between June and September 2024 before rebounding to normal levels by November and increasing further in December.

Notably, Bangladeshi credit cardholders conducted approximately 2.04 times more transactions abroad compared to the transactions made by foreign nationals within Bangladesh in December 2024.

Among international card providers, VISA emerged as the most popular choice, accounting for 72 percent of domestic transactions and 60 percent of international transactions.

The US remained the top destination for Bangladeshi credit card users, with 15 percent of all international transactions taking place there.

Meanwhile, US cardholders emerged as the highest spenders among foreign nationals in Bangladesh, accounting for 32 percent of total foreign credit card transactions within the country.