People’s lifestyles – especially their spending habits – have changed significantly over the last few years with the advent of digital banking which offers a wide range of services, including making cashless payments using QR codes and shopping online using internet banking from anywhere.

People use digital banking systems and online marketplaces more during Ramadan, which leads to Eid-ul-Fitr, compared to the other times of the year. This year, the trend of using credit and debit cards as well as mobile financial services in shopping at physical and e-commerce platforms surged more compared to those in other years as the Eid season will be immediately followed by Pahela Baishakh, the first day of the Bangla calendar.

Cashless methods of payment are growing in popularity as financial institutions have teamed up with different boutiques, brands and food courts to offer a wide range of discounts.

Most of the popular lifestyle brands and eateries are offering up to 35% discounts on clothes and foods for making payments digitally, either through cards or apps.

The cards and virtual wallets have even changed our habit of giving “eidi” to younger ones as many prefer a transfer of money to their accounts to receiving cash.

All these practices are taking Bangladesh towards a cashless society, supported by the Bangladesh Bank which has set a target to cover 75% of payment through cashless methods within the next three years. Of the country’s total Tk16.88 trillion deposits in the banking sector, banks circulate only 2.54 trillion paper notes (until December 2023) to avoid the risk of inflation.To promote digital payments, public and private financial institutions, including The City Bank, Eastern Bank, BRAC Bank, Mutual Trust Bank, and Premier Bank, are leading the market while some fourth-generation lenders like NRB Bank and Community Bank are trying to come up with competitive digital payment options.

NRB Bank offers a maximum 35% discount on jewellery shopping 12% on lifestyle and 10% on eateries marking this Ramadan and Eid-ul-Fitr.

Syed Mahbubur Rahman, former chairman of the Association of Bankers Bangladesh (ABB), said that the behaviour of cardholders changes during Ramadan ahead of the largest festival of the Muslim community.

“Banks are witnessing a rising trend in transactions through cards as financial institutions offer special benefits to their users at authentic brands and services. People are now feeling comfortable with e-commerce companies and other platforms which enable them to shop from home. Banks have to keep up with the customers as well as with the changing landscape of digital platforms,” Syed Mahbubur Rahman, also the managing director at Mutual Trust Bank, told the Daily Sun.

Among the state-owned entities, Sonali Bank is in a race with the private financial institutions. As per the directive of the Bangladesh Bank, all banks have to adopt QR-codes facilitating digital payments by June this year to reduce the hassle for customers.

In the app-based services, City Touch of The City Bank, Aastha of BRAC Bank, Cellfin of Islami Bank, and Community Cash of Community Bank have plenty of offers marking Eid this year.

Regarding the smart lifestyle, NRB Bank Deputy Managing Director Shaheen Howlader said the fourth-generation lender has made the lifestyle of customers convenient with a wide array of digital services on card and mobile apps.

“NRB Bank has over 1.50 lakh of cardholders who enjoy priority services at over 1,000 partner organisations. Besides, around 23% of bank customers are connected with NRB Bank click platforms which transact Tk4.5 million per month QR code,” Shaheen Howlader told the Daily Sun while sharing the digital footprints of the bank.

Customers can get up to 40% discount on online shopping and services from selected merchants by selecting SSL COMMERZ gateway with “bKash Payment”.

Shamsuddin Haider Dalim, head of corporate communications and public relations at bKash, said that the mobile financial service is working with merchants, payment gateway providers, banks, financial institutions, and technology integrators to develop a digital payment ecosystem in the country to bring the real benefits of cashless payments to our customers.

“To make customers habituated to digital payment, especially during the shopping spree of Eid and festivals, bKash offers cashback and discounts at various merchants across the country including online shops, Facebook pages, branded stores, fashion houses, shoe stores, electronics and restaurants,” Shamsuddin Haider told Daily Sun.

As the introducer of the American Express Card in Bangladesh, City Bank is leading the way in the card segment, while the first-generation lender is focused on the City Touch app to promote cashless transactions on the go.

Regarding the convenience of cards, City Bank’s Head of Retail Banking Arup Haider said that card and digital payments have revolutionised the payment method by making it more convenient for the customers.

Carrying cash is no longer essential as customers have access to quick and easy transaction systems at stores and online. Additionally, budgeting becomes easier with transaction records readily available on customers’ phones. In sum, card and digital payment increases convenience in terms of speed, ease and keeping track of spending, Arup Haider told the Daily Sun.

“Methods of digital payments with cards and apps are not only enabling the customers to save more, these methods are also helping them avoid the risk of getting attacked by muggers. So, we can say the virtual format of money has a wide range of benefits for customers. The users should focus on personal security like securing personal identification number or one-time password (OTP) during payment over counters or online platforms,” he added.

As the use of digital payment increases over time, cybercriminals have been aiming to steal money from people’s virtual wallets. So, people should grab the benefits of digital payment in line with Smart Bangladesh’s vision of the government, but they should also be careful about their passwords and OTP.