Cashless transactions get momentum in Eid Shopping

Shoppers are increasingly using cards and mobile financial services (MFS) ahead of the Eid-ul-Fitr, with officials from different brands, fashion houses, and banks reportedly at around 40-60 percent transactions expediting cashless transactions at high-end outlets.

The trend is being driven by a number of factors, including convenience and security of cashless payments, as well as growing availability of discounts and offers from banks and MFS providers, the officials say.

Since the Covid-19 pandemic in 2020, cashless transactions have increased more than before, be it through cards or MFS, they say.
Bangladesh Bank (BB) data shows, in July, the first month of the current fiscal year 2023-24, transactions based on ATM, POS, CRM, and e-commerce amounted to Tk37,669 crore. But the transaction amount increased to Tk46,448 crore in January, registering a 23.30 percent jump over six months.

On the other hand, transactions through mobile financial services amounted to Tk98,306 crore in July 2023. However, within a span of six months, the transaction amount rose by 31.67 percent to reach Tk1,29,445 crore.

Banks are now offering discounts of up to 70-80 percent on various products including clothing, shoes, and jewelry during Eid shopping through credit cards. Besides, discounts are being offered even on purchase of food for iftar and sehri, along with various Eid gifts such as buy-one-get-one offers.

Jahangir Alam Shovon, executive director of e-Commerce Association of Bangladesh (e-CAB), said around "50-60 percent of payments for branded products that are sold online are now digital. Buyers pay in advance through using cards or MFS before getting delivery of the product."

He further said, "Overall, 30-35 percent of payments are being made digitally for online purchases. However, it is observed that advanced payments for non-branded products are decreasing."

Owners of shops at various locations in the capital, including Bashundhara City Shopping Mall, Baitul Mukarram, Bailey Road, and Mogbazar, say customers are making digital payments of 40-60 percent for their Eid shopping.

During a visit to brand shops like Gentle Park, Twelve Clothing, Mbrella, and RichMan in Bashundhara Shopping Mall on Friday, it was observed that customers were making card payments at the counters for bills.

Mohammad Shahed, cashier of Twelve Clothing, mentioned that customers are now paying nearly 60 percent of the product prices via cards.

Akhtar Hossein, manager of RichMan, said, "Around 50-60 percent of our customers are now making payments via cards. Various discounts are available for card payments, which also encourage customers."

Elias Ahmed, manager of Mbrella, said, "Our Eid sales are doing well. Almost 40 percent of the payments by customers are being made via cards."

Traders say during Eid, customers prefer cashless transactions to avoid the risk of carrying cash. Moreover, focusing on the Eid, various card and mobile financial services are offering discounts ranging from 10-80 percent, resulting in an increase in cashless transactions, they say.

Afroza Khatun, a customer visiting the Baitul Mukarram Market to purchase jewelry, said "My salary is deposited directly into my bank account. I make payments through cards for any purchase I make. It is  hassle free," he said.

Farid Chowdhury, buying from artisan boutique shop at on Bailey Road, said, "For shopping, digital payment is now preferable because paper notes are often found in bad condition. Therefore, paying by card or online is better. There is also no risk of carrying cash and if fake notes are found, it leads to unnecessary trouble."