Visa Trends Report Reveals Doubling of Contactless Payment Adoption in Bangladesh

Visa (NYSE: V), the global leader in digital payments, has released its latest trends report, showing a dramatic shift in consumer spending behavior in Bangladesh. The report, which compares trends from 2023 to 2024, highlights a significant rise in digital and contactless payment adoption across both domestic and cross-border transactions.

According to Visa’s analysis, overall consumer spending in Bangladesh rose by 14 percent, with a 17 percent increase in the number of transactions in 2024. This surge in digital payments was driven primarily by a strong uptick in online transactions, with both credit and debit card usage seeing substantial growth. While in-store payments also saw an increase, online transactions have emerged as the major growth catalyst for the country’s digital economy.

Visa’s findings indicate that domestic spending was largely fueled by e-commerce, as more consumers turned to their credit and debit cards for online shopping. International transactions also saw impressive growth, with both in-store physical payments and cross-border online purchases using cards climbing sharply.

Sabbir Ahmed, Visa’s Country Manager for Bangladesh, Nepal, and Bhutan, commented on the findings, saying, “Our latest trends analysis signals Bangladesh’s rapid shift towards digital and contactless payments, seen across credit and debit cards, online and in-store payments, and both domestic and international usage. With the expertise of our Visa Consulting and Analytics team, we continue to provide secure and seamless digital payment solutions to consumers, businesses, and clients in Bangladesh.”

One of the standout trends highlighted in the report is the rapid adoption of contactless payments. The use of tap-to-pay technology has more than doubled, jumping from 6 percent in 2023 to 13 percent in 2024. Domestic contactless payments alone have tripled, driven by the increasing use of credit and debit contactless cards. This shift is part of a broader trend towards digital wallets, with nearly half of domestic spending coming from digital wallet loads.

Other sectors seeing notable growth in domestic spending include travel services, discount stores, drugstores, pharmacies, and healthcare. Cross-border spending, however, was primarily driven by education, business-to-business (B2B) payments, and food and grocery expenses.

Visa’s analysis of cross-border spending reveals that over 90% of Bangladesh’s international purchases are concentrated in the top 20 countries. The five countries that accounted for the majority of cross-border spending in 2024 were India, the United States, the United Kingdom, Thailand, and the United Arab Emirates. Of these, India remains the leading destination for cross-border spending, although it experienced a 10 percent decline in spending over the past year. In contrast, Thailand saw a 20 percent rise, largely due to an increase in medical tourism. Bangladeshis spent 25% more on healthcare and over 35% more on pharmacy services in Thailand.

The report also noted strong digital payment growth in cities beyond Dhaka. While Dhaka continues to dominate as the hub for digital transactions, accounting for 75 percent of total spending and 80 percent of transactions in 2024, cities like Gazipur, Rajshahi, Rangpur, and Mymensingh have also seen growth in digital payment usage. Dhaka experienced a 20 percent rise in spending in 2024, with 60 percent of consumers in the capital preferring online payments.

In terms of business adoption, Visa reported a 50 percent increase in spending using business credit cards. Notably, business credit cards saw a remarkable surge, with spending and transactions both up by more than 135%, indicating a rapid expansion of the digital economy in Bangladesh.

Visa’s report paints a promising picture of Bangladesh’s rapidly evolving digital payment landscape, with both consumers and businesses embracing the convenience, security, and efficiency of digital and contactless payments. As the country continues to move towards a more digitally connected future, Visa remains committed to enabling secure and seamless payment experiences for everyone.