Visa Trends Report Highlights Surge In Contactless Payments As Adoption Doubles In Bangladesh3 min read
Visa (NYSE: V), the global leader in digital payments, has conducted an extensive analysis of the spending behavior of consumers in Bangladesh, comparing trends from 2023 to 2024. The findings represent a significant shift to digital payments, with increased use in online and contactless payments, both in domestic and cross-border transactions, according to press release.
Compared to 2023, Visa witnessed an increase of 14 percent in overall spending and a 17 percent rise in transactions in 2024. Both credit and debit card usage have significantly risen, with online payments as the key driver. While in-store payments have risen, online transactions have been the growth catalyst. Domestic spending was primarily fueled by e-commerce transactions, as consumers used their credit and debit cards increasingly. On the contrary, international transactions witnessed strong growth in both in-store physical payments and online cross-border purchases using cards, said in press release.
Sabbir Ahmed, Country Manager, Bangladesh, Nepal, & Bhutan, Visa, commented, “Our latest trends analysis signals Bangladesh’s rapid shift towards digital and contactless payments, seen on all fronts – credit and debit cards, online and in-store payments and across domestic and international usage. With the prowess of our Visa Consulting and Analytics team, we provide the best of secure digital payments to consumers, businesses and clients across Bangladesh. At Visa, our mission is to be the best way to pay and be paid, and we are committed to enabling the country’s digital landscape with the Visa promise of world class security.”
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In addition to consumer spending, the analysis also signals increased digital adoption by businesses with a 50 percent rise in spends using cards. Particularly, Business credit cards showed a strong surge of over 135% in both spending and number of transactions, a strong indicator of how the nation’s digital economy is expanding.
The increasingly popular Tap to pay or contactless transactions have doubled in Bangladesh, increasing from 6 percent in 2023 to 13 percent in 2024. Domestic contactless payments alone have tripled, buoyed by both credit and debit contactless cards.
Nearly half of the domestic spending is from digital wallet loads. Other segments where consumers have spent the highest domestically include travel services, discount stores, drugstores, pharmacies, and healthcare. However, cross-border payments are driven by education, business to business (B2B) payments, food and grocery, and government services.
A deeper dive by Visa into cross-border spending shows that more than 90% of spends by Bangladeshis is concentrated in the top 20 countries. The top 5 countries – India, the United States of America, the United Kingdom, Thailand, and the United Arab Emirates – contributed to more than half of cross-border spending. The top 5 countries where Bangladeshis spent the most in-store last year are India, Thailand, the United States of America, the United Arab Emirates, and Singapore, said in press release.
While India still leads in cross-border spending, it has observed a 10 percent decline in the past year. Occupying the second spot, Thailand saw a rise of more than 20 percent rise in spends, primarily due to higher medical tourism; Bangladeshis spent nearly 25% more on healthcare and 35%+ more on pharmacy expenses. Other notable cross-border spending markets include Malaysia, Mainland China, and Vietnam.
Within Bangladesh, Dhaka remains the dominant digital transactions hub, contributing 75 percent of total spending and 80 percent in transactions in 2024. The city also observed a 20 percent growth in spending in 2024, with 60 percent consumers preferring online payments. Other notable cities that have also witnessed growth in using digital payments include Gazipur, Rajshahi, Rangpur, and Mymensingh.
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