Cashless transactions soar as Eid shopping goes digital

Infographic: TBS

Shoppers are increasingly making purchases through using cards and mobile financial services (MFS) ahead of the Eid-ul-Fitr, with officials from different brands, fashion houses, and banks reporting that around 40%-60% of transactions are now cashless at high-end outlets.

The trend is being driven by a number of factors, including the convenience and security of cashless payments, as well as the 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.

According to Bangladesh Bank data, 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% 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% to reach Tk1,29,445 crore.

Banks are now offering discounts of up to 70-80% on various products including clothing, shoes, and jewellery 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 the e-Commerce Association of Bangladesh (e-CAB), told TBS, "50%-60% 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% of payments are being made digitally for online purchases. However, it is observed that advanced payments for non-branded products are decreasing."

Brand shops see rise in digital transactions on Eid

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% for their Eid shopping.

During a visit to shops of brands 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% of the product prices via cards.

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

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

Reasons for cashless choice

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%, resulting in an increase in cashless transactions, they say.

Afroza Khatun, a customer visiting the Baitul Mukarram Market in the capital to purchase jewellery, told TBS, "My salary is deposited directly into my bank account. I make payments through cards for any purchase I make. Because withdrawing cash from the card and carrying it around is a hassle and quite risky."

Farid Chowdhury, who came to purchase clothes from an artisan boutique on Bailey Road, said, "For shopping, digital payment is now preferable because paper notes are often found in bad condition. Shopkeepers are reluctant to accept such money when making purchases. Therefore, paying by card or online is better. There is also no risk of carrying cash here. Moreover, if fake notes are found, it leads to unnecessary trouble."

Mohammad Rumman, an assistant at the cash counter of clothing brand YELLOW in the capital's Mogbazar, said, "If our sales reach Tk3 lakh, customers pay Tk2 lakh through cards or MFS."

Khalilur Rahman, cashier at Kings Fashion Wear at Mogbazar, said, "Customers are making on average 40% of their payments through various bank cards with us."

City Bank

City Bank has introduced offers of up to 80% discount for their cardholders at more than 50 jewellery establishments and 60% discount on lifestyle items at 300 entities, while online purchases can fetch discounts of up to 70%. Additionally, over 130 restaurants are offering "buy one get one" offers or discounts up to 30% for iftar and dinner.

Moreover, City Bank cardholders are enjoying discounts on both domestic and international travel, with discounts of up to 70% on hotel bookings and air tickets. Accelerated reward points and discounts of up to 25% are also available for grocery items and online food delivery services.

This year, City Bank is the title sponsor for the Foodpanda-organised "Grand Iftar Bazaar," featuring over 15 restaurants in Dhaka's Dhanmondi and Banani areas. American Express card holders of City Bank can avail themselves of a 25% discount there.

UCB

United Commercial Bank (UCB) has introduced special offers for its cardholders on iftar, sehri, and Eid purchases. The bank is offering discounts of up to 30% at over 1,900 partner merchants. Customers can avail themselves of cashback offers of up to 10% at various supermarkets, including Shwapno and Agora, as well as popular lifestyle brands such as Aarong, Yellow, Bata, and Apex, among others.

Besides, renowned hotels like Westin, Sheraton, Radisson Blu, and La Méridien are offering "buy one get one" and "buy one get two" offers for iftar and dinner. Up to 15% cashback is available for online bus and train tickets as well.

BRAC Bank

Throughout the entire month of Ramadan until Eid day, BRAC Bank customers can enjoy various attractive offers at over 6,000 merchant partners, with more than a thousand outlets offering enticing offers.

Customers can avail discounts of up to 70%. Besides, customers will enjoy discounts of up to 30% at 113 hotels and restaurants in major cities like Sheraton Dhaka, The Westin Dhaka, Le Méridien Dhaka, InterContinental Dhaka, Pan Pacific Sonargaon, and Radisson Blu Dhaka and Chattogram.

BRAC Bank cardholders can enjoy discounts of up to 60% at 177 lifestyle partner shops and up to 60% discounts at 22 selected jewellery shops.

NRBC Bank

NRBC Bank is offering special offers for cardholders this Ramadan. At all five-star hotels including Sheraton, Westin, InterContinental, Pan Pacific Sonargaon, Radisson, and Le Méridien, if someone buys one, he/she gets one free on both iftar and dinner, as well as for sehri.

Besides, during Eid shopping, all NRBC Bank cardholders are getting a special 10% cashback at all outlets of Aarong. By using NRBC credit cards, customers can avail themselves of the opportunity to purchase electronics, mobile phones, and home appliances at various outlets across the country at 0% interest on instalment.

Bank Asia

Bank Asia is offering up to a maximum of 15% discount for its credit card customers during Eid shopping. Besides, there is a "buy one get one" offer for sehri and iftar at five-star hotels.

Eastern Bank

Eastern Bank has also offered discounts ranging from 7% to 50% at designated showrooms of various lifestyle brands. Customers can also avail cashback offers of up to 10% at renowned lifestyle stores including Aarong and Apex.

Besides, there are "buy one get one" offers at iftar and dinner in renowned hotels, along with various discounts, including "buy one get one" and "buy one get two" offers. The bank has provided the opportunity for customers to make purchases on instalment plans.

Islami Bank Bangladesh

Islami Bank Bangladesh is offering various gifts, including cashback on purchases made with their Visa, Debit, and Khidmah cards. The shariah-compliant bank has announced cashback offers of up to 15% at showrooms of various lifestyle brands like Yellow, Apex, Infinity, and Artisans during Eid shopping.

Besides, there are various discounts available at iftar and dinner in renowned hotels, along with "buy one get one" offers. There is an opportunity for cardholders of the bank to make purchases on instalment plans.

Dutch-Bangla Bank

Dutch-Bangla Bank has introduced "buy one get one", "buy one get two" and "buy one get three" offers on iftar and dinner at five-star deluxe hotels throughout the month of Ramadan for its debit and credit cardholders. Besides, Nexus MasterCard, Nexus VAIPI Banking Debit Card, and Visa Signature cardholders are enjoying special discounts on Eid shopping at various brand outlets.

Customers are receiving a 20% instant cashback by scanning QR codes and making payments through Nexus Pay and Rocket apps. This offer is available at supermarkets such as Shwapno, Agora, Meena Bazar, Prince Bazar, Unimart, and Wholesale Clubs, as well as at outlets like Bata, Apex, Lotto, and Bay Emporium.

Customers can also avail of the same benefits at retailers such as Sailor, La Reve, Fit Elegance, and Infinity, among others.

Prime Bank

Prime Bank is offering special discounts for Visa and MasterCard holders on purchases. It offers discounts of up to 50% alongside various gifts in lifestyle shopping.

Besides, there are "buy one get one" offers on iftar and dinner during Ramadan. Moreover, discounts of up to 50% are available for online purchases.

bKash

Customers of mobile financial services provider bKash can enjoy various cashback amounts from both online and offline offers.

bKash customers can receive instant cashback of up to Tk300 on online shopping. They can also avail cashback offers of up to Tk500 on preferred accessories, shoes, and clothing purchases, along with discount coupons. To enhance the joy of holiday outings during Eid vacation, bKash is offering discounts of up to 65% on hotel and resort room bookings. The offer will continue until April 30.

Nagad

During Eid last year, Nagad launched an offer under which there was an opportunity to win several sedan cars and motorcycles including BMW. This time, another mega campaign has been launched by the MFS provider. In the campaign, there is an opportunity to win land in Dhaka.

The campaign, worth Tk20 crore, has partnered with various brands across the country. Notable among these are Apex, Bata, Beximco, Lotto, Gentle Park, Sailor, Artisan, Demand Fashion, Rangs, e-Mart, MK Electronics Limited, Hisense, Samsung, Singer Bangladesh, and Cherry.

There is also a chance to win 100% cashback on Nagad transactions at this time. There are opportunities to win various prizes such as bikes, TVs, refrigerators, ACs, smartphones, and smartwatches.

Eid target

Mohammad Rajimul Haque, head of the card division at City Bank, told TBS, "As usual, we focus our business targets on customer-centricity. So far, we are satisfied with our performance in transaction-based dealings. We hope to achieve our targets by the end of the Eid shopping season."

City Bank is encouraging cashless transactions to mitigate the risk of carrying cash, he said.

"Therefore, debit and credit cardholders are being offered various attractive discounts and deals at different events. Once again, cardholders of City Bank are enjoying special offers during Eid shopping and iftar," said the City Bank official.