During Eid-ul-Azha, consumer spending remains robust despite inflationary pressures, driven by a maturing retail market and consumer resilience. Shoppers are placing a strong emphasis on convenience and value, with extended shopping hours and lifestyle spending contributing to a thriving festive economy.
In an interview with The Daily Star, Syed Mohammad Kamal, the Bangladesh country manager for Mastercard, sheds light on the impact of digital payments, incentives, and partnerships on Eid spending trends.
When asked about the expected consumer spending behavior in Bangladesh during this Eid-ul-Azha season compared to last year, Syed Mohammad Kamal highlighted the enduring strength of Eid-ul-Azha spending. He mentioned that Mastercard is playing a vital role in this transition by offering discounts of up to 50 percent and running the “Lakh Takar Utshob” campaign, providing top spenders with Tk 100,000 vouchers. By incentivizing digital transactions, Mastercard is facilitating the move from cash to structured digital payments, making cards the preferred choice for festive shopping.
Regarding the major trends in Eid-related digital transactions, such as card payments and online transfers, Syed Mohammad Kamal pointed out that digital payments are diversifying beyond retail to encompass Qurbani services, groceries, and travel. Mastercard is supporting this shift through agro-farm partnerships that enable digital cattle purchasing, processing, and discounts of up to 70 percent on travel through partners like ShareTrip. Additionally, a sustainability initiative is in place, offering reusable bags for grocery purchases over Tk 3,000 at leading chains like Shwapno and Agora. These trends reflect a move towards a secure, integrated, and eco-conscious festive economy.
When asked about the advancement towards a cashless Eid economy in Bangladesh and the driving factors behind this shift, Syed Mohammad Kamal noted that while the country is moving towards a “cash-lite” economy, a significant portion of transactions (70 percent) still rely on cash. To expedite digital adoption, he suggested implementing a three-year incentive framework that offers 3 percent for consumers and 2 percent for merchants. Furthermore, reducing duties on POS devices and smartphones to 15 percent could further boost digital penetration. By combining supportive regulations with rewarding systems like the Family Card, Bangladesh can establish a more transparent, inclusive, and resilient financial ecosystem that benefits the national economy.
Lastly, discussing the e-commerce trends and online buying behaviors during Eid, and the role of banks in enabling this ecosystem, Syed Mohammad Kamal highlighted the increasing platform loyalty among consumers, driven by convenience, security, and substantial discounts of up to 50 percent. E-commerce platforms are making headway into traditionally cash-based sectors through services like online cattle booking and slaughtering. Banks are enhancing the checkout experience and offering attractive rewards such as the “Spend & Win” campaign to ensure that digital platforms remain a prominent feature of festive spending.