A complete review of the cards, payments and consumer banking market in Bangladesh, with perceptive observation backed by significant data.
Although the pandemic has negatively impacted purchase volume and transactions, a revolution is underway centred around mobile payment and P2P methods. This is finally making inroads on cash usage.
In 2020, mobile payments at the POS exceeded debit card purchase volume. The Bangladesh credit cards market is tiny but profitable, with a ceiling of 20 percent interest recently set for credit cards. Appropriately licensed non-bank entities have been rolling out white-label ATMs and POS terminals, extending the acceptance reach.
An interoperable QR code, Bangla QR, is currently being deployed, which should find popular favour given the ease of use, interoperability and the increasing penetration of compatible phones.
How mobile payments are transforming the market.
Why white-label hardware licensing is key.
How contactless has fared since its debut.
Where the best growth prospects lie.
How the Bangladesh debit card is viewed by consumers.
Our latest report covers topics such as:
Consumer payment trends: the split between cash, card, transfers, digital wallets, direct debit as well as buy-now-pay-later (BNPL) trends.
Bangladesh credit card data: including profit pools, profit drivers, country comparisons.
Acquirers and processors' market share: partnership prospects and online and e-commerce opportunities.
Regulatory environment: latest developments and forecast trends
TABLE OF CONTENTS
Demographics and the economy
Key retail banks and issuers
Acquiring and processing
Regulatory and other cards market information
Appendices: Card Payments Data
Appendix I: Demographics and the economy
Appendix II: Payments environment
Appendix III: Cards market data
Appendix IV: Mobile payments
Appendix V: Profit pool
Appendix VI: Card networks
Appendix VII: Key retail banks and issuers
Appendix VIII: Acquirers and processing
Appendix IX: Online acquiring data
Demographics and Economy
Bangladesh is now considered one of the success stories in contemporary South Asia: in October 2020, it emerged that its per-capita GDP will exceed India's by the end of 2020, a shock to the status quo.
Bangladesh is still predominantly a cash-oriented society. While the government is pushing for a reduction of cash use, it remains integral to daily life, in particular in rural areas.
By the end of 2020, the total number of active payment cards in issue, not including prepaid cards, in Bangladesh amounted to an estimated 26 million, up from eight million in 2014.
Verisk Financial Research (VFR) expects continued strong growth in billed volume for the forecast years. Billed volume is expected to close out the year at over $63 billion in 2020, increasing from just under $12 billion in 2014.
Although tiny given the country's population, the Bangladeshi credit card industry is profitable, with an estimated pre-tax profit in 2020 of $36 million.
Credit cards comprise a tiny slice of the payments market in Bangladesh, representing a mere two cards per 100 adults in 2020. The leading debit card network in Bangladesh is a proprietary scheme issued by DBBL. Visa is the leading network by billed volume.
Key Retail Banks and Issuers
There is a total of 60 scheduled banks currently in operation in Bangladesh: these may be split into six different groupings.
Acquiring and Processing
The City Bank is the leading credit card issuer, as well as being the leading acquirer of credit cards at the POS. It is also the largest acquirer of debit cards at the POS.
The online acquiring and processing market in Bangladesh has expanded greatly in recent years. The total amount of online acquired billed volume came to an estimated $532 million in 2020.
Regulatory and Markets Information
The World Bank, in a report on regulatory predictability, highlighted ineffective banking regulation and supervision as challenges that have weakened the Bangladeshi banking sector.
Bangladesh Commerce Bank
Bangladesh Development Bank
Bangladesh Krishi Bank
Bangladesh Telecommunication Regulatory Commission
Commercial Bank of Ceylon
Dutch-Bangla Bank Limited
Electronic Money Transfer System
FIS Global Services
Islami Bank Bangladesh
Lanka Bangla Finance
Mutual Trust Bank
National Bank of Pakistan
Probashi Kallyan Bank
Rajshahi Krishi Unnoyon Bank
Regulatory Fintech Facilitation Office
Standard Chartered Bangladesh
State Bank of India
SunGurd System Access
The City Bank
United Commercial Bank
University of Dhaka
Verisk financial reports include detailed market and competitor intelligence on payments cards, e-money, acquiring, retail banking, and consumer credit in the Asia Pacific region. Analysts use primary and secondary source data and conduct in-depth interviews with senior industry executives and finance experts.
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