NASSAU, BAHAMAS- Data from the Central Bank of The Bahamas shows credit card spending soared 28.5 percent to $1.8 billion in 2024, while the number of debit card transactions rose 15.9 percent to 28.7 million, highlighting a growing shift toward cashless payments nationwide.
The surge in credit card use could indicate rising consumer confidence and increased purchasing power, but it also raises concerns about growing household debt as more consumers rely on credit for everyday expenses. Debit card transactions increased both in volume and value, with the value rising by $4.1 billion from $2.7 billion in 2023, signaling greater adoption of digital payment methods.
The Central Bank’s 2024 annual report notes that “digital wallet activation increased by 12.2 percent for consumers, reaching approximately 133,481 users, while the merchant ecosystem expanded by 3.2 percent to 2,034.” The report also highlights the rollout of SandDollar Wallet 2.0, which introduced “enhanced KYC management mechanisms, richer data collection to support better demographic analyses, and improved workflows for seamless integration with third-party applications.” Adoption efforts included “face-to-face user engagements, targeted promotions, and incentive programmes” aimed at unbanked and underbanked communities across New Providence and the Family Islands.
On the wholesale level, the report states that “domestic payments settled through the RTGS declined in volume by 2.3 percent to 273,443 transactions, and in value by 21.8 percent to $30.9 billion,” while the Bahamas Automated Clearing House (BACH) saw “a 16.0 percent expansion in transactions to 5.9 million, with the associated value increasing by 14.5 percent to $10.4 billion.” Cheque usage remained subdued, with “the number of instruments processed reducing by 14.5 percent to 823,100 and the corresponding value falling by 1.9 percent to $3.8 billion.”
