May sees drop in MFS, credit card, e-commerce transactions

Transactions through digital forms, such as mobile financial service (MFS), credit cards and e-commerce, declined in May compared to April this year.

According to the latest Bangladesh Bank (BB) data, MFS transactions declined over 30 per cent to Tk 64,946.7 crore, credit card transactions dropped 12.67 per cent to Tk 2,371 crore, and e-commerce transactions went down 13.41 per cent to Tk 867.7 crore in May.

In April, a record Tk 93,033 crore was transacted through MFS while credit card transactions amounted to Tk 2,715 crore, and e-commerce transactions were at Tk 1,002 crore.

Sectorial people told that overall transactions generally increase during the Eid holidays every year. Eid-ul-Fitr was celebrated at the beginning of May and most of the transactions happened in the last week of April. That’s why overall transactions had increased in April.

But credit card and e-commerce transactions decreased in May as people enjoyed a weeklong holiday during and after Eid. They do less shopping at the time and that’s why transactions through these mediums declined, MasterCard Country Manager Syed Mohammad Kamal told The Business Post.

“However, transactions did not decrease in May compared to previous Eid holidays. Usually, it decreases by 20-25 per cent,” he added.

Shamsuddin Haider Dalim, head of corporate communications and PR at the country’s largest MFS provider bKash, also said that the drop in MFS transactions in May was normal.

“The transaction was at an all-time high in April because of Eid. Transactions generally decrease after Eid and that’s what happened in May,” he added.

Compared to April, merchant payments through MFS — the most popular medium of digital transactions — slightly declined to Tk 2,527 crore and utility bill payments slightly increased to Tk 1,332.5 crore in May. Meanwhile, the number of MFS accounts increased 1.7 per cent to 11.27 crore in May.

Dalim said, “The ecosystem of digital transactions is growing while new services are being introduced to increase the customer base. The continuous policy support from the government and increased investment by companies are also playing roles behind the overall increase in the number of accounts.”