Despite the impact of rising prices, consumer expenditure for Eid-ul-Azha remains steady, driven by the resilient nature of shoppers and an evolving retail industry. Consumers are increasingly valuing convenience and cost-effectiveness, with extended shopping hours and lifestyle purchases further contributing to a vibrant festive economy.
In a recent interview with The Daily Star, Syed Mohammad Kamal, the Bangladesh country manager for Mastercard, shared insights into how digital payments, incentives, and partnerships are shaping spending behaviors during Eid.
When asked about the outlook for consumer spending in Bangladesh during this Eid-ul-Azha season compared to the previous year, Syed Mohammad Kamal highlighted the robust spending trend driven by consumers prioritizing value and convenience despite inflation. Mastercard’s initiatives, such as offering discounts of up to 50 percent and the “Lakh Takar Utshob” campaign with Tk 100,000 vouchers for top spenders, are incentivizing the transition towards structured digital transactions, positioning cards as the preferred choice for festive shopping.
Regarding the major trends in digital transactions related to Eid, including card payments, mobile financial services, and online transfers, Syed Mohammad Kamal noted the expansion of digital payments beyond retail to include Qurbani services, groceries, and travel. Mastercard’s collaborations with agro-farms enable digital cattle purchasing and processing, while partnerships like ShareTrip offer significant discounts on travel. Moreover, sustainability initiatives like providing reusable bags for grocery purchases over Tk 3,000 at leading chains signal a shift towards a secure, integrated, and eco-friendly festive economy.
On the topic of Bangladesh’s progression towards a cashless Eid economy, Syed Mohammad Kamal acknowledged the ongoing transition to a “cash-lite” economy, with the majority of transactions still cash-based. To accelerate digital adoption, he emphasized the importance of a three-year incentive framework offering benefits for both consumers and merchants. Additionally, reducing duties on POS devices and smartphones to 15 percent could further boost digital penetration, fostering a more transparent, inclusive, and resilient financial ecosystem that benefits the national economy.
In terms of e-commerce and online purchasing trends during Eid, Syed Mohammad Kamal highlighted the increasing loyalty towards online platforms driven by factors like convenience, security, and substantial discounts. E-commerce platforms are making inroads into traditionally cash-oriented sectors through services such as online cattle booking and slaughtering. Banks are enhancing the online shopping experience by streamlining the checkout process and introducing rewarding campaigns like “Spend & Win,” ensuring that digital platforms remain integral to festive spending.
