Payments in Brazil 2017: What Consumers Want
Summary
Despite Brazil’s economic progress, cash remains the primary payment instrument as much of the population – especially in rural areas – still do not have access to basic financial services. However, payment cards are emerging as a substitute for cash, as the government and banks begin to provide basic financial access to the unbanked. This includes the government’s policy for financial inclusion, the expansion of banking infrastructure in rural regions, and the appointment of banking correspondents. According to World Bank statistics, Brazil has made substantial progress in terms of financial inclusion, with the percentage of the population aged 15 or above with a bank account increasing from 64.3% in 2013 to 75.5% in 2017.
Debit card penetration in Brazil stood at 155.5, the highest in comparison to its regional peers. Banco Central do Brasil (BCB), the country’s central bank, has simplified the process of opening a bank account, facilitating access to basic banking products. Furthermore, the government has introduced the Bolsa Familia program to provide social security benefits to low-income families by direct fund transfers. Various such initiatives have driven debit card growth in Brazil.
Pay-later card penetration in Brazil stood at 72.4 cards per 100 individuals in 2017. The growing lower- and middle-class populations have fueled credit card penetration. In November 2010, the National Monetary Council made it compulsory for banks to provide basic credit cards with lower annual fees. Consequently, banks started to offer basic credit cards for low- and middle-income consumers, leading to growth in the number of credit cards in circulation.
E-commerce market posted a review-period (2013-17) CAGR of 17.2%, growing from BRL31.1bn ($9.6bn) in 2013 to BRL58.7bn ($18.0bn) in 2017. While payment cards remain the preferred method of online payment, alternative payments such as PayPal, Boleto Bancário, and Masterpass are all used for online shopping. The availability of digital wallet services, and the security and convenience they offer, has made them popular among consumers.
The report “Payments in Brazil 2017: What Consumers Want”, examines the consumer payments market in Brazil, considering payment cards, online payments, P2P payments, and newer payment technologies such as mobile wallets and contactless.
Specifically, this report provides the following –
– Analyzes consumer attitudes to financial services by life-stage.
– Analyzes the major payment card types in terms of both card holding and usage.
– Identifies the major competitors in card issuing and how their position in the market has changed over the last five years.
– Considers consumer attitudes towards P2P tools, mobile payment tools, and contactless cards, and how companies in Brazil are deploying these tools to meet customer needs.
– Explores the online payment market in Brazil by merchant type and payment tool, as well as providing a five-year forecast for the development of the market.
Companies mentioned in this report: Banco Bradesco, Caixa Econômica Federal, Banco Santander, Itaú Unibanco, HSBC, Banco do Brasil, Citibank, Hipercard, Elo, Visa, Mastercard, American Express.
Scope
– According to World Bank statistics, Brazil has made substantial progress in terms of financial inclusion, with the banked population increasing from 64.3% in 2013 to 75.5% in 2017.
– The Brazilian government provides numerous social benefit programs, payments of which are made through cards. A popular benefit scheme is the Bolsa Familia program. Transfers are made to beneficiary families through prepaid cards issued by CEF.
– Visa has partnered with mobile payments firm payleven to launch the payleven Visa prepaid card in Brazil. The prepaid card enables merchants, specifically sole traders, to receive the money for transactions processed by the payleven chip-and-PIN card reader directly to their cards.
Reasons to buy
– Understand the key facts and figures in the consumer payments market in Brazil.
– Learn what trends drive consumer behavior at the macro level and plan your strategy accordingly.
– Find out what products the major competitors are launching in the market.
– Discover consumer sentiments towards various payment tools in the Brazilian market and use this knowledge to inform product design.
