Cards triumph amid pandemic
Debit cards users transacted an archive Tk 18,123.6 crore in July because they chosen the digital money over cash to keep carefully the coronavirus at bay.
The transaction may be the highest at least since December 2018, Bangladesh Bank data showed.
July's figure is 29.08 % higher than Tk 14,040.5 crore transacted in the same month a year ago and 44.66 % up from Tk 12,528.1 crore in June this year.
In the primary month of the fiscal year, credit card-holders spent Tk 1,252.4 crore, that was the highest in half a year or more 19.49 % year-on-year.
Their spending stood at Tk 898 crore in June this season and Tk 1,048.1 crore in July this past year.
Though restrictions have already been easing off since June, both debit and credit card-holders have still been relying on digital money to cover goods and services due to the persisting coronavirus pandemic.
"July was an excellent month. Eid was a factor as the religious festival was celebrated towards the end of the month," explained Syed Mohammad Kamal, region manager for Mastercard.
For the card business, April was the worst type of month. It recovered somewhat in-may and made a modest comeback in June.
"In July, the card organization has returned to almost the February-level. It could be said it had been a turning level," Kamal said.
A significant part of the card business is international transaction but that is largely non-existent since April as a result of the pandemic.
People from Bangladesh used to visit a lot and at exactly the same time, a lot of folks used to visit Bangladesh prior to the deadly virus arrived on the shores of the country.
"Usually, we see a lean period after Eid, but this season August was as well not a negative month if the pandemic is taken into account," said Kamal.
Restaurants are beginning after remaining shut for the most of the April to Might period. Through the pandemic, foodstuff delivery was generally suspended as persons were cautious but that too has rebounded strongly.
The reopening of the domestic airlines is helping the card business breathe a sigh of relief. Domestic accommodations and resorts have reopened after Eid.
E-commerce is booming and mobile recharge through cards has gone up, while adding funds to mobile financial assistance accounts has increased. Life-style shopping also gone up during Eid. People started likely to restaurants and groceries by retaining social distancing and choosing safety measures.
The electronics sector also performed well in the first month of the fiscal year. People tend to buy deep freeze during Eid-ul-Azha, when crores of animals will be sacrificed.
Normally, the lifestyle segment does not do well during Eid-ul-Azha. But just as people could not store during Eid-ul-Fitr this year owing to the lockdown, they came out before Eid-ul-Azha and spent funds on clothes and other items.
"All of these helped the entire volume in the cards business grow on July onwards," Kamal explained.
Banks issued a complete of 19,972,790 debit cards by July, which is up 14.39 % from 17,459,889 in the same month this past year and 1.25 % from 19,725,783 in June this season.
The number of bank cards in circulation stood at 1,597,748 in July, up 10.56 % compared to 1,445,119 in the same month last year. The quantity stood at 1,593,697 in June this season.
Thanks to a rise in online shopping, local transaction by cards rose 29.35 % year-on-year to Tk 19,625 crore from Tk 15,172.3 crore in the same month this past year. It is up from Tk 13,603 crore in June this year.
Forex transaction through cards, however, nosedived by 75 % to Tk 65.9 crore in July from Tk 264.8 crore in the same month this past year, reflecting the drop in cross-border trading activities owing to the pandemic-induced shutdown in the home and abroad.
July's figure, however, is the highest since April, regarding to data from the central lender.
In Bangladesh, bank cards were launched in 1997, debit card in 2004 and internet banking in 2006, simply by Standard Chartered Bank.
The credit card segment is dominated by Town Bank, Eastern Bank, Normal Chartered and Brac Bank.
Lanka-Bangla Financing dominates the domestic-only credit cards.
Dutch-Bangla Bank network marketing leads the pack of the debit card segment, followed by Islami Bank Bangladesh Ltd, Prime Bank and Brac Bank.
The quantity of prepaid cards rose an astounding 74.17 per cent year-on-year to 589,785 found in July. It was 586,230 in June.
People who don't possess the eligibility to possess either debit or bank cards can still have pre-paid cards. Users need to load money onto the cards.
The prepaid credit card itself is an account and users don't have to open any bank-account to possess a pre-paid card. The cards happen to be common among students and freelancers.
EBL is the market leader in the prepaid credit card segment, followed by Lender Asia, Mutual Trust Bank and City Bank.
Transaction through internet banking fell: it had been Tk 6,254.9 crore in July, down 15.72 % from Tk 7,421.6 crore recorded in the same month this past year. It had been Tk 7,421.1 crore in June this year.
