The Cards and Payments Industry in Brazil: Emerging trends and opportunities to 2020

2017-08-01
Price :
Published : Aug-2017
No. of Pages : 58

The Cards and Payments Industry in Brazil: Emerging trends and opportunities to 2020

Summary

In 2016, debit card penetration in Brazil stood at 159.6, the highest in comparison to its regional peers – Chile with 122.2, Mexico with 113.3, Venezuela with 92.4, Argentina with 91.5, and Colombia with 49.6. Peru had the lowest penetration with 47.3. Despite the country’s economic progress, cash remains the primary payment instrument, as a portion of 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 population.

Pay-later card penetration in Brazil measured 83.5 cards per 100 individuals in 2016, compared to its peers: Argentina (87.0), Chile (74.4), Venezuela (59.1), Colombia (30.4), Mexico (25.1), and Peru (21.8). 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 than cards offering benefits or rewards such as air miles or insurance cover.

Brazilian e-commerce market posted a review-period (2012-16) compound annual growth rate (CAGR) of 21.42%, growing from $7.40bn (BRL24.10bn) in 2012 to $16.10bn (BRL52.40bn) in 2016, and is anticipated to reach $23.10bn (BRL75.10bn) by 2020. Payment cards remain the most popular payment method among online shoppers, accounting for 66.3% of the total e-commerce transaction value in 2016.

Banco Central do Brasil, the country’s central bank, has simplified the process of opening a bank account, facilitating access to basic banking products such as bank accounts and debit cards. Accounts can be opened by individuals free of charge in government-owned banks, with no maintenance fee charged. Furthermore, the government has introduced the Bolsa Familia program to help low-income families.

The report “The Cards and Payments Industry in Brazil: Emerging trends and opportunities to 2020” provides detailed analysis of market trends in the Brazilian cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including credit transfers, payment cards, cash, direct debits, and cheques during the review-period (2012-16e).

In particular, this report provides the following analysis –
– Current and forecast values for each market in the Brazilian cards and payments industry, including debit, credit and charge cards.
– Detailed insights into payment instruments including credit transfers, cash, cheques, direct debit, and payment cards. It also, includes an overview of the country’s key alternative payment instruments.
– E-commerce market analysis and payment methods.
– Analysis of various market drivers and regulations governing the Brazilian cards and payments industry.
– Detailed analysis of strategies adopted by banks and other institutions to market debit, credit and charge cards.

Companies mentioned in this report: Caixa Econômica Federal, Banco Bradesco, Banco do Brasil, Banco Santander, Itaú Unibanco, Visa, Mastercard, American Express, Diners Club, Hipercard, Elo, Cielo, Banrisul.

Scope

– To increase credit card use, the National Monetary Council has implemented a number of measures in the form of reducing fees and interest rates on credit card transactions. Most recently in January 2017, it introduced restrictions to revolving credit lines offered by credit card issuers. Under the new rule, whenever credit card holders enter a revolving credit pattern and are unable to pay off the debt within the first 30 days, the bank has to offer a credit instalment option to pay off the outstanding balance, with lower interest rates. Card issuers were given a deadline of April 3, 2017 to comply with the rule.
– The uptake of alternative payments is gradually increasing in Brazil, with banks and payment solution providers launching products and services in the market. Samsung launched its mobile payment service Samsung Pay in Brazil in July 2016. The service is supported by major banks such as CEF, Banco do Brasil, Brasil Pré-Pagos, Porto Seguro, and Banco Santander Brasil. Visa launched the Visa Checkout service in Brazil in October 2015. Visa Checkout is a payment solution that stores users’ payment and shipping details, providing faster checkout on partner merchants’ websites or apps. Similarly, Mastercard launched its Masterpass payment solution in Brazil in July 2015.
– The emergence of digital banks is likely to accelerate a shift towards electronic payments in Brazil. Brazil-based fintech company Contro.ly launched its mobile-only bank Neon in July 2016. Customers use facial recognition to access their account, as well as to perform additional transactions such as transfers and payments. When customers sign up, they have to enroll in biometric authentication with their mobile phone by taking a selfie, which will be used for future authentications. Previously Nubank, the country’s first mobile-only bank, was launched in September 2014, which also enables consumers to conduct banking transactions through their mobile phones.

Reasons to buy

– Make strategic business decisions, using top-level historic and forecast market data, related to the Brazilian cards and payments industry and each market within it.
– Understand the key market trends and growth opportunities in the Brazilian cards and payments industry.
– Assess the competitive dynamics in the Brazilian cards and payments industry.
– Gain insights into marketing strategies used for various card types in Brazil.
– Gain insights into key regulations governing the Brazilian cards and payments industry.

Filed in: Banking & Finance
Publisher : GlobalData
More Reports
Title Price Buy Now

Employee Benefits in Kazakhstan 2018

Employee Benefits in Kazakhstan 2018 Summary Kazakhstan's social security system consists of social insurance system and social assistance system. The social security system covers a large proportion of the population and offers a wide range of social benefits and allowances to its people. The Kazakhstan Agency for Financial Market and Financial Organizations, the Ministry of Labor and Social Protection (MOLSP) and the Ministry of Health are the most important organizations responsible for the management and supervision of social security benefits. Both the state and private benefits in Kazakhstan are undergoing transformation, and are expected to improve in the near future as the government is aiming to diversify its economy. The report provides in-depth industry analysis, information ......
$1495

Governance, Risk and Compliance – The Taiwanese Insurance Industry

Governance, Risk and Compliance - The Taiwanese Insurance Industry Summary GlobalData's 'Governance, Risk and Compliance - The Taiwanese Insurance Industry' report is the result of extensive research into the insurance regulatory framework in Taiwan. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. The report brings together GlobalData's research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal......
$1495

Governance, Risk and Compliance – The Ecuadorian Insurance Industry

Governance, Risk and Compliance - The Ecuadorian Insurance Industry Summary GlobalData's 'Governance, Risk and Compliance - The Ecuadorian Insurance Industry' report is the result of extensive research into the insurance regulatory framework in Ecuador. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. The report brings together GlobalData's research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and le......
$1495

Governance, Risk and Compliance – The Kazakhstani Insurance Industry

Governance, Risk and Compliance - The Kazakhstani Insurance Industry Summary GlobalData's 'Governance, Risk and Compliance - The Kazakhstani Insurance Industry' report is the result of extensive research into the insurance regulatory framework in Kazakhstan. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. The report brings together GlobalData's research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation a......
$1495

Governance, Risk and Compliance – The Luxembourg Insurance Industry

Governance, Risk and Compliance - The Luxembourg Insurance Industry Summary GlobalData's 'Governance, Risk and Compliance - The Luxembourg Insurance Industry' report is the result of extensive research into the insurance regulatory framework in Luxembourg. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. The report brings together GlobalData's research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and......
$1495

Strategic Market Intelligence: Life Insurance in Pakistan – Key Trends and Opportunities to 2022

Strategic Market Intelligence: Life Insurance in Pakistan - Key Trends and Opportunities to 2022 Summary GlobalData's 'Strategic Market Intelligence: Life Insurance in Pakistan - Key Trends and Opportunities to 2022' report provides a detailed outlook by product category for the Pakistani life insurance segment, and a comparison of the Pakistani life insurance with its regional counterparts. It provides values for key performance indicators such as written premium, incurred loss, claims paid, commissions and expenses, combined ratio, total assets, total investment income and net earned premium during the review period (2013-2017) and forecast period (2017-2022). The report also analyzes distribution channels operating in the segment, gives a comprehensive overview of the Pakistani econ......
$3999

Strategic Market Intelligence: General Insurance in Pakistan – Key Trends and Opportunities to 2022

Strategic Market Intelligence: General Insurance in Pakistan - Key Trends and Opportunities to 2022 Summary GlobalData's 'Strategic Market Intelligence: General Insurance in Pakistan - Key Trends and Opportunities to 2022' report provides a detailed outlook by product category for the Pakistani general insurance segment, and a comparison of the Pakistani general insurance with its regional counterparts. It provides values for key performance indicators such as written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, total assets, total investment income and net earned premium during the review period (2013-2017) and forecast period (2017-2022). The report also analyzes distribution channels operating in the segment, gives a comprehensive overview of the Pak......
$3999

PESTLE Insights: Macroeconomic Outlook Report – Norway

PESTLE Insights: Macroeconomic Outlook Report - Norway Summary Financial intermediation, real estate and business activities contributed 17.6% to the gross value added (GVA) in 2017, followed by mining, manufacturing and utilities (10.2%), and wholesale, retail and hotels (9.7%). In nominal terms, the three sectors are expected to grow by 6.3%, 4.5% and 5.8%, respectively, in 2018. Over 2018-2029 period, the Norwegian government plans to develop infrastructure by spending NOK1,064 bn (US$128.6 bn) on roads, shipping, railways, aviation, and public transport. Scope - Four major regions in Norway generate around 52.8% of the country's GDP and comprise 27.5% of the country's population - FDI inflows towards Norway has been witnessing a declining trend over the past three years, with mini......
$500

PESTLE Insights: Macroeconomic Outlook Report – Denmark

PESTLE Insights: Macroeconomic Outlook Report - Denmark Summary Financial intermediation, real estate and business activities contributed 25.9% to the gross value added (GVA) in 2017, followed by mining, manufacturing and utilities (17.9%), and wholesale, retail and hotels (15.1%). In nominal terms, the three sectors are expected to grow by 5.6%, 2.9% and 5.4%, respectively, in 2018. To develop the infrastructure of the country, the Government of Denmark has earmarked DKK100.0 bn (US$14.8 bn) to be spent by 2020 to ensure high level of mobility, flexibility and reliability. Scope - Four major provinces generated around 52.8% of the GDP of Denmark and were home to 51.2% of the country's population, as of 2016 - Financial intermediation was the top invested sector in Denmark in 2017 - O......
$500

Employee Benefits in Canada 2018

Employee Benefits in Canada 2018 Summary The Canadian social security system covers various programs, many of which are run by the country's provinces and territories. In general, benefits are similar across all provinces and territories; however, Quebec implements its own pension plan. The government provides financial support to provincial and territorial governments through four main transfer programs - the Canada Health Transfer (CHT), the Canada Social Transfer (CST), and Equalization and Territorial Formula Financing (TFF) - to help them provide social programs and services to citizens. Private employee benefits are gaining popularity, and many companies offer private benefit plans for employees to supplement the government-sponsored hospital and medical plans. The report provides......
$1495
We use cookies to deliver the best possible experience on our website.
By continuing to use this site, or closing this box, you consent to our use of cookies. To learn more, visit our Privacy Policy