Banks have tied up with clothing brands, supermarket chains and restaurants in the contest to get customers to splurge during Ramadan and the Eid-ul-Fitr festival.

Standard Chartered, Mutual Trust, Eastern, City, Brac and many other banks are offering discounts of up to 30 percent for purchases made with cards during the month of Ramadan.

bKash, a mobile financial service provider, is offering 10-20 percent cash back for payment made through the platform at a select few clothing stores.

“Bangladesh Bank asked us to make digital payment popular, so we are offering cash backs to get people to take to the platform,” said Kamal Quadir, CEO of bKash.

Standard Chartered, the pioneer in the card business in Bangladesh, is providing the highest offers for Ramadan and Eid shopping.

The bank is offering cash back of 2 to 7.5 percent for spending through card in grocery shop, dining, hotel and all other retail transaction.  A Standard Chartered MasterCard holder can enjoy up to 20 percent discount at 20 clothing stores and 25 percent discount with Visa card.

The bank also offering 35 percent discount on furniture and electronics purchase from 11 brands for the occasion of Eid-ul-Fitr.

“Banks are offering incentives for card transaction to promote a cashless society,” said Abrar A Anwar, chief executive officer of Standard Chartered Bangladesh, adding that it is a global practice to accelerate economic activities.

Banks and merchants are jointly making the offers and both parties are being benefited as it leads to an increase in card transaction. The offers also tempt customers to buy more, he added.

Among other banks, Mutual Trust Bank, Dhaka Bank, United Commercial Bank, National Bank, NRB Bank are running 'buy one get one free' offer for iftaar and suhoor buffets at standalone restaurants and upscale hotels for their card holders.

The BB is encouraging the use of card for transactions as it reduces the cost and risks of carrying cash, said Subhankar Saha, executive director of the central bank.

Card transaction between the months of January and March stood at Tk 2,023 crore, up almost 14 percent from a year earlier, according to data from the BB.