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Argentinas Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

Published By :

Timetric

Published Date : Jan 2014

Category :

Banking

No. of Pages : 101 Pages


Synopsis

The report provides top-level market analysis, information and insights on Argentina’s cards and payments industry, including:

  • Current and forecast values for each category of Argentina’s cards and payments industry, including debit cards, credit cards and prepaid cards
  • Comprehensive analysis of the industry’s market attractiveness and future growth areas
  • Analysis of various market drivers and regulations governing Argentina’s cards and payments industry
  • Detailed analysis of the marketing strategies adopted for selling debit, credit and prepaid cards used by various bankers and other institutions in the market
  • Comprehensive analysis of consumer attitude and their buying preferences for cards
  • The competitive landscape of Argentina’s cards and payments industry

Executive summary

The Argentinian card payments channel grew both in volume and value terms during the review period. In terms of volume, the card payments channel grew at a CAGR of 14.51% from 35.0 million cards in 2008 to 60.2 million in 2012. Growth is anticipated to continue at a forecast-period CAGR of 6.27% to reach 86.5 million cards in circulation by 2017.
In terms of card volume, credit cards accounted for a 46.4% share in 2012, followed by debit cards with 45.1%. In terms of value, the card payments channel grew from ARS265.4 billion (US$84.4 billion) in 2008 to ARS561.6 billion (US$123.8 billion) in 2012, at a CAGR of 20.61%. The channel is expected to reach ARS839.2 billion (US$102.3 billion) in 2017, representative of a forecast-period CAGR of 7.03%. Growth in the channel is expected to be driven by an increasing demand for charge cards and credit cards, a better regulatory framework, an increasing e-commerce market and a positive economic outlook.

The implementation of improved security measures and advanced technology has changed the dynamics of the cards and payments industry in Argentina. EMV is a chip-based technology superior to magnetic strip based cards in terms of security and transaction speed. EMV technology supported by NFC-enabled contactless payment systems will significantly reduce the processing speed of transactions, saving time and money for customers and retailers.

Scope

This report provides a comprehensive analysis of Argentina’s cards and payments industry.

  • It provides current values for Argentina’s cards and payments industry for 2012, and forecast figures for 2017.
  • It details the different economic, infrastructural and business drivers affecting Argentina’s cards and payments industry.
  • It outlines the current regulatory framework in the industry.
  • It details the marketing strategies used by various banks and other institutions.
  • It profiles the major banks in Argentina’s cards and payments industry.

Reasons to buy

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

Key highlights

  • The Argentinian card payments channel registered marginal growth during the review period (2008–2012). The number of cards in circulation recorded a review-period CAGR of 14.51%, supported by a positive economic outlook, a need for more sophisticated products in terms of prepaid and charge cards, the growth of retail commerce and increased demand for prepaid products.
  • During the review period, the size of the card payments channel, in terms of volume, increased at a CAGR of 14.51% to reach 60.2 million cards in 2012. In value terms, the Argentinian card payments channel grew from ARS265.4 billion (US$84.4 billion) in 2008 to ARS561.6 billion (US$123.8 billion) in 2012. Over the forecast period (2013–2017), card payments are expected to deliver strong growth as consumers increasingly move away from cash transactions.
  • Competition in the cards and payments industry has forced issuers to employ effective promotional strategies. Card transaction discounts and benefits, which create consumer satisfaction and increased customer loyalty, are available. Benefits include complementary insurance, interest-free credit, overseas medical and legal assistance, and information on transactions through e-statements. Many banks have competitive interest rates on credit cards with deferred interest. Also available is a 5% VAT rebate on purchases made with certain cards.
  • Technological advances in payment systems and its supporting infrastructure include EMV, NFC and contactless technology. EMV technology replaces magnetic strip-based cards with chip-based cards which store data and can be read with radio frequency identification device (RFID) or NFC devices, both of which enable contactless payment. These technologies have significantly reduced processing times and strengthened security measures, saving both consumers and retailers time and money. Overall growth in the Argentinian cards and payments industry is based on the adoption of advanced technology which will increase card use for transactions.
  • E-commerce consumers in Argentina prefer to use cards when making online payments, often encouraged by promotional offers. In Argentina, more than 30% of the country’s SMEs used e-commerce to make transactions including buying and selling of the products and services in 2013, and this trend is expected to continue over the forecast period, driving online card transactions.
Table of contents

1 Executive Summary

2 Analysis of the Market Environment, Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technologies
2.1.1 ATMs
2.1.2 POS terminals
2.1.3 Internet penetration
2.1.4 Mobile payments
2.1.5 Improving payment infrastructure
2.1.6 Increasing acceptance of EMV cards
2.1.7 NFC and contactless payments
2.2 Business Drivers
2.2.1 Growth in the retail industry
2.2.2 Growing e-commerce industry
2.2.3 Growing trading partnerships
2.3 Economic Drivers
2.3.1 Stable GDP
2.3.2 Inflation
2.3.3 GDP per capita

3 Cards and Payments Industry Share Analysis
3.1 Industry Overview
3.1.1 Cash
3.1.2 Checks
3.1.3 Card payments
3.1.4 Credit transfer
3.1.5 Direct debit

4 Regulatory Framework and Card Fraud Statistics
4.1 Regulatory Framework
4.1.1 Foreign direct investment regulations
4.2 Card Fraud Statistics
4.2.1 Card-not-present fraud
4.2.2 Counterfeit cards
4.2.3 Card ID theft
4.2.4 Cards lost or stolen

5 Emerging Consumer Attitudes and Trends
5.1 Industry Segmentation and Targeting
5.1.1 Retail segment
5.1.2 Corporate users
5.2 Travel and Tourism Spending
5.2.1 Outbound tourist trips
5.2.2 Outbound tourist spending
5.3 Retail Card Spending
5.3.1 Analysis by product categories
5.3.2 Analysis by retail channels

6 Analysis of Card Payments and Growth Prospects
6.1 Channel Share Analysis by Card Category
6.2 Size and Forecast of the Card Payments Channel
6.2.1 Analysis by number of cards in circulation
6.2.2 Analysis by transaction value

7 Analysis of Credit Card Payments and Growth Prospects
7.1 Overall Category Size and Forecast
7.1.1 Analysis by number of cards in circulation
7.1.2 Analysis by transaction value
7.1.3 Analysis by transaction volume
7.2 Transaction Share Analysis by Channel
7.2.1 Analysis by transaction value
7.2.2 Analysis by transaction volume
7.3 Personal Credit Cards Sub-Category Size and Forecast
7.3.1 Analysis by number of cards in circulation
7.3.2 Analysis by transaction value
7.3.3 Analysis by transaction volume
7.4 Commercial Credit Cards Sub-Category Size and Forecast
7.4.1 Analysis by number of cards in circulation
7.4.2 Analysis by transaction value
7.4.3 Analysis by transaction volume
7.5 Competitive Landscape
7.5.1 Scheme share analysis
7.5.2 Issuer share analysis

8 Analysis of Debit Card Payments and Growth Prospects
8.1 Overall Category Size and Forecast
8.1.1 Analysis by number of cards in circulation
8.1.2 Analysis by transaction value
8.1.3 Analysis by transaction volume
8.2 Transaction Share Analysis by Channel
8.2.1 Analysis by transaction value
8.2.2 Analysis by transaction volume
8.3 Competitive Landscape
8.3.1 Scheme share analysis
8.3.2 Issuer share analysis

9 Analysis of Charge Card Payments and Growth Prospects
9.1 Overall Category Size and Forecast
9.1.1 Analysis by number of cards in circulation
9.1.2 Analysis by transaction value
9.1.3 Analysis by transaction volume
9.2 Transaction Share Analysis by Channel
9.2.1 Analysis by transaction value
9.2.2 Analysis by transaction volume
9.3 Personal Charge Cards Sub-Category Size and Forecast
9.3.1 Analysis by number of cards in circulation
9.3.2 Analysis by transaction value
9.3.3 Analysis by transaction volume
9.4 Commercial Charge Cards Sub-Category Size and Forecast
9.4.1 Analysis by number of cards in circulation
9.4.2 Analysis by transaction value
9.4.3 Analysis by transaction volume
9.5 Competitive Landscape
9.5.1 Scheme share analysis

10 Analysis of Prepaid Card Payments and Growth Prospects
10.1 Overall Category Size and Forecast
10.1.1 Analysis by number of cards in circulation
10.1.2 Analysis by transaction value
10.2 Open-Loop Prepaid Cards Segment Size and Forecast
10.2.1 Analysis by number of cards in circulation
10.2.2 Analysis by transaction value
10.3 Closed-Loop Prepaid Cards Segment Size and Forecast
10.3.1 Analysis by number of cards in circulation
10.3.2 Analysis by transaction value

11 Merchant Acquiring
11.1 Merchant Acquirers in Argentina
11.2 Company Profiling in Argentina

12 Company Profiles of Card Issuers
12.1 Banco de la Nación Argentina
12.1.1 Card portfolio
12.1.2 Strategies
12.2 Banco de Galicia y Buenos Aires SA
12.2.1 Key financials
12.2.2 Card portfolio
12.2.3 Strategies
12.3 Banco Macro SA
12.3.1 Key financials
12.3.2 Card portfolio
12.3.3 Strategies
12.4 Banco Santander Río SA
12.4.1 Key financials
12.4.2 Card portfolio
12.4.3 Strategies
12.5 Banco Patagonia
12.5.1 Key financials
12.5.2 Card portfolio
12.5.3 Strategies

13 Appendix
13.1 Methodology
13.2 Contact Timetric
13.3 About Timetric
13.4 Timetric’s Services
13.5 Definitions
13.6 Disclaimer

List of Table


Table 1: Argentinian Payment Channels (ARS Billion), 2008–2012
Table 2: Market Entry Strategy of Foreign Banks in Argentina
Table 3: Argentinian Card Fraud (ARS Million), 2008–2012
Table 4: Cards for HNWIs in Argentina
Table 5: Credit Cards Offered for SMEs in Argentina
Table 6: Specialized Credit Cards for Agricultural Customers in Argentina
Table 7: Consumer Card Spending Product Category in Argentina (ARS Million), 2008 and 2012
Table 8: Argentinian Consumer Card Spending by Retail Channel (ARS Million), 2008–2012
Table 9: Argentinian Card Payments Channel by Card Category (Million), 2008–2017
Table 10: Argentinian Card Payments Channel Size by Volume of Cards (Million), 2008–2017
Table 11: Argentinian Card Payments Channel Size by Transaction Value (ARS Billion), 2008–2017
Table 12: Argentinian Card Payments Channel Size by Transaction Value (US$ Billion), 2008–2017
Table 13: Argentinian Credit Cards Category Size by Volume of Cards (Million), 2008–2017
Table 14: Argentinian Credit Cards Category Size by Transaction Value (ARS Billion), 2008–2017
Table 15: Argentinian Credit Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 16: Argentinian Credit Cards Category Size by Transaction Volume (Million), 2008–2017
Table 17: Argentinian Personal Credit Cards Sub-Category Size by Volume of Cards (Million), 2008–2017
Table 18: Argentinian Personal Credit Cards Sub-Category Size by Transaction Value (ARS Billion), 2008–2017
Table 19: Argentinian Personal Credit Cards Sub-Category Size by Transaction Value (US$ Billion), 2008–2017
Table 20: Argentinian Personal Credit Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Table 21: Argentinian Commercial Credit Cards Sub-Category Size by Volume of Cards (Thousand), 2008–2017
Table 22: Argentinian Commercial Credit Cards Sub-Category Size by Transaction Value (ARS Million), 2008–2017
Table 23: Argentinian Commercial Credit Cards Sub-Category Size by Transaction Value (US$ Million), 2008–2017
Table 24: Argentinian Commercial Credit Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Table 25: Argentinian Debit Cards Category Size by Volume of Cards (Million), 2008–2017
Table 26: Argentinian Debit Cards Category Size by Transaction Value (ARS Billion), 2008–2017
Table 27: Argentinian Debit Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 28: Argentinian Debit Cards Category Size by Transaction Volume (Million), 2008–2017
Table 29: Argentinian Charge Cards Category Size by Volume of Cards (Thousand), 2008–2017
Table 30: Argentinian Charge Cards Category Size by Transaction Value (ARS Million), 2008–2017
Table 31: Argentinian Charge Cards Category Size by Transaction Value (US$ Million), 2008–2017
Table 32: Argentinian Charge Cards Category Size by Transaction Volume (Thousand), 2008–2017
Table 33: Argentinian Personal Charge Cards Sub-Category Size by Volume of Cards (Thousand), 2008–2017
Table 34: Argentinian Personal Charge Cards Sub-Category Size by Transaction Value (ARS Million), 2008–2017
Table 35: Argentinian Personal Charge Cards Sub-Category Size by Transaction Value (US$ Million), 2008–2017
Table 36: Argentinian Personal Charge Cards Sub-Category Size by Transaction Volume (Thousand), 2008–2017
Table 37: Argentinian Commercial Charge Cards Sub-Category Size by Volume of Cards (Thousand), 2008–2017
Table 38: Argentinian Commercial Charge Cards Sub-Category Size by Transaction Value (ARS Million), 2008–2017
Table 39: Argentinian Commercial Charge Cards Sub-Category Size by Transaction Value (US$ Million), 2008–2017
Table 40: Argentinian Commercial Charge Cards Sub-Category Size by Transaction Volume (Thousand), 2008–2017
Table 41: Argentinian Prepaid Cards Category Size by Volume of Cards (Million), 2008–2017
Table 42: Argentinian Prepaid Cards Category Size by Transaction Value (ARS Billion), 2008–2017
Table 43: Argentinian Prepaid Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 44: Argentinian Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2008–2017
Table 45: Argentinian Open-Loop Prepaid Cards Segment Size by Transaction Value (ARS Billion), 2008–2017
Table 46: Argentinian Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2008–2017
Table 47: Argentinian Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2008–2017
Table 48: Argentinian Closed-Loop Prepaid Cards Segment Size by Transaction Value (ARS Billion), 2008–2017
Table 49: Argentinian Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2008–2017
Table 50: List of Banks issuing Visa Cards in Argentina, 2013
Table 51: BNA – Card Portfolio and Key Features
Table 52: Banco de Galicia y Buenos Aires SA – Key Financial Indicators (ARS Billion), 2011–2012
Table 53: Banco de Galicia y Buenos Aires SA – Card Portfolio and Key Features
Table 54: Banco Macro SA – Key Financial Indicators (ARS Billion), 2011–2012
Table 55: Banco Macro SA – Card Portfolio and Key Features
Table 56: Banco Santander Río SA – Key Financial Indicators (EUR Billion), 2011–2012
Table 57: Bancio Santander Río SA – Card Portfolio and Key Features
Table 58: Banco Patagonia – Key Financial Indicators (ARS Million), 2011–2012
Table 59: Banco Patagonia – Card Portfolio and Key Features
Table 60: Key Definitions

List of Chart


Figure 1: Benchmarking the Argentinian Card Payments Channel Against Other Key Regional Markets
Figure 2: Argentina – Growth of Various Card Categories (%), 2008–2017
Figure 3: ATM Penetration in Argentina, 2008–2017
Figure 4: POS Terminal Penetration in Argentina, 2008–2017
Figure 5: Argentina – Internet Users per 100 Inhabitants, 2008–2012
Figure 6: Argentinian Growth in Value of M-Payments (ARS Million), 2008–2017
Figure 7: Retail Sales Value in Argentina (ARS Billion), 2008–2012
Figure 8: GDP Growth in Argentina (% Change), 2008–2017
Figure 9: Inflation Rate in Argentina (%), 2008–2017
Figure 10: GDP Per Capita in Argentina (US$), 2008–2017
Figure 11: Shares of Key Payment Channels in Argentina (%), 2008 and 2012
Figure 12: Argentinian Card Fraud (ARS Million), 2008–2012
Figure 13: Argentinian Card-Not-Present Fraud Value (ARS Million), 2008–2012
Figure 14: Argentinian Counterfeit Card Fraud Value (ARS Million), 2008–2012
Figure 15: Argentinian Card ID Theft Value (ARS Million), 2008–2012
Figure 16: Argentinian Cards Lost or Stolen Fraud Value (ARS Million), 2008–2012
Figure 17: Argentinian Cards and Payments Industry Segmentation by Card Type
Figure 18: Argentinian Outbound Tourist Trips (Thousand), 2008–2012
Figure 19: Argentinian Outbound Tourists Spending (ARS Million), 2008–2017
Figure 20: Retail Consumer Card Spending by Product Category in Argentina (%), 2012
Figure 21: Retail Consumer Card Spending by Retail Channel in Argentina (%), 2012
Figure 22: Argentinian Card Payments Channel by Card Category (%), 2008–2017
Figure 23: Argentinian Card Payments Channel Size by Volume of Cards (Million), 2008–2017
Figure 24: Argentinian Card Payments Channel Size by Transaction Value (ARS Billion), 2008–2017
Figure 25: Argentinian Credit Card Volume and Penetration, 2008–2017
Figure 26: Argentinian Credit Cards Category Size by Volume of Cards (Million), 2008–2017
Figure 27: Argentinian Credit Cards Category Size by Transaction Value (ARS Billion), 2008–2017
Figure 28: Argentinian Credit Cards Category Size by Transaction Volume (Million), 2008–2017
Figure 29: Argentinian Credit Card Transactions Value by Channel (ARS Billion), 2008–2017
Figure 30: Argentina Credit Card Transaction Volume by Channel (Million), 2008–2017
Figure 31: Argentinian Personal Credit Cards Sub-Category Size by Volume of Cards (Million), 2008–2017
Figure 32: Argentinian Personal Credit Cards Sub-Category Size by Transaction Value (ARS Billion), 2008– 2017
Figure 33: Argentinian Personal Credit Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Figure 34: Argentinian Commercial Credit Cards Sub-Category Size by Volume of Cards (Thousand), 2008–2017
Figure 35: Argentinian Commercial Credit Cards Sub-Category Size by Transaction Value (ARS Million), 2008–2017
Figure 36: Argentinian Commercial Credit Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Figure 37: Argentinian Credit Cards Category Share by Scheme (%), 2012
Figure 38: Argentinian Credit Cards Category Shares by Issuer (%), 2012
Figure 39: Argentinian Debit Card Volume and Penetration, 2008–2017
Figure 40: Argentinian Debit Card Category Size by Volume of Cards (Million), 2008–2017
Figure 41: Argentinian Debit Cards Category Size by Transaction Value (ARS Billion), 2008–2017
Figure 42: Argentinian Debit Cards Category Size by Transaction Volume (Million), 2008–2017
Figure 43: Argentinian Debit Cards Transaction Value by Channel (ARS Billion), 2008–2017
Figure 44: Argentinian Debit Cards Transaction Volume by Channel (Million), 2008–2017
Figure 45: Argentinian Debit Cards Category Share by Scheme (%), 2012
Figure 46: Argentinian Debit Cards Category Share by Issuer (%), 2012
Figure 47: Argentinian Charge Card Volume and Penetration, 2008–2017
Figure 48: Argentinian Charge Cards Category Size by Volume of Cards (Thousand), 2008–2017
Figure 49: Argentinian Charge Cards Category Size by Transaction Value (ARS Million), 2008–2017
Figure 50: Argentinian Charge Cards Category Size by Transaction Volume (Thousand), 2008–2017
Figure 51: Argentinian Charge Cards Transaction Value by Channel (ARS Million), 2008–2017
Figure 52: Argentinian Charge Cards Transaction Volume by Channel (Thousand), 2008–2017
Figure 53: Argentinian Personal Charge Cards Sub-Category Size by Volume of Cards (Thousand), 2008–2017
Figure 54: Argentinian Personal Charge Cards Sub-Category Size by Transaction Value (ARS Million), 2008–2017
Figure 55: Argentinian Personal Charge Cards Sub-Category Size by Transaction Volume (Thousand), 2008–2017
Figure 56: Argentinian Commercial Charge Cards Sub-Category Size by Volume of Cards (Thousand), 2008–2017
Figure 57: Argentinian Commercial Charge Cards Sub-Category Size by Transaction Value (ARS Million), 2008–2017
Figure 58: Argentinian Commercial Charge Cards Sub-Category Size by Transaction Volume (Thousand), 2008–2017
Figure 59: Argentinian Charge Cards Category Share by Scheme (%), 2012
Figure 60: Argentinian Prepaid Card Volume and Penetration, 2008–2017
Figure 61: Argentinian Prepaid Cards Category Size by Volume of Cards (Million), 2008–2017
Figure 62: Argentinian Prepaid Cards Category Size by Transaction Value (ARS Billion), 2008–2017
Figure 63: Argentinian Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2008–2017
Figure 64: Argentinian Open-Loop Prepaid Cards Segment Size by Transaction Value (ARS Billion), 2008–2017
Figure 65: Argentinian Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2008–2017
Figure 66: Argentinian Closed-Loop Prepaid Cards Segment Size by Transaction Value (ARS Billion), 2008–2017

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