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

Published By :

Timetric

Published Date : Dec 2014

Category :

Banking

No. of Pages : 85 Pages

Synopsis

The report provides top-level market analysis, information and insights into Colombia's cards and payments industry, including:
  • Current and forecast values for each category of Colombia'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 Colombia's cards and payments industry
  • Detailed analysis of the marketing strategies adopted for selling debit, credit and prepaid cards used by banks and other institutions in the market
  • Comprehensive analysis of consumer attitudes and buying preferences for cards
  • The competitive landscape of Colombia's cards and payments industry
Executive summary

  • In 2013, Colombia surpassed Argentina to become the third-largest economy in Latin America and was the fourth-highest recipient of foreign direct investment (FDI), with US$17.0 billion in the same year. Of the total population of 47.2 million, however, the unbanked population accounted for nearly 35% of the adult population in 2013, according to the Colombian Banking Association. The low banking penetration levels present banks and card issuers operating with growth potential. Banks have stepped in to take advantage of this large untapped market, having introduced a number of cards targeting the unbanked population. While leading card issuers pushed for growth by offering improved products, services and marketing campaigns, while the government encouraged electronic payments through its financial inclusion plan. Consequently, Colombian payment cards registered healthy growth during the review period (2009–2013), and are anticipated to continue the same trend over the forecast period (2014–2018).
  • In terms of the number of cards in circulation, Colombian payment cards (including debit and credit cards) registered a positive growth during the review period, recording a compound annual growth rate (CAGR) of 8.05% and increasing from 22.6 million in 2009 to 30.8 million in 2013. Growth in the industry is expected to be driven by growth in the retail sector, an increasing demand for debit and credit cards, a better regulatory framework, an increasing market for online and mobile commerce and a positive economic outlook.
  • In 2013, the average transaction value (ATV) in Colombia was US$121, which was the second-highest in the Latin-American region. Peru recorded the highest ATV with US$144.3, followed by Chile (US$82.4), Venezuela (US$71.4), Brazil (US$69.6) and Argentina (US$50).
  • Similarly, in terms of card penetration, Colombia recorded 0.7 cards per inhabitant in 2013, while Brazil, Argentina, Chile, Venezuela and Peru recorded 2.6, 1.4, 1.3, 1.1 and 0.6 respectively. In terms of the frequency of use, Colombia recorded 28.7 transactions per card in the same year, while Venezuela, Argentina, Chile, Peru and Brazil recorded respective numbers of 61.2, 42.3, 37.6, 30.2 and 23.7.
  • Colombian payment cards grew both in terms of transaction value and volume during the review period. In terms of transaction value, payment cards posted a CAGR of 10.10%, increasing from COP136.9 trillion (US$63.4 billion) in 2009 to COP201.1 trillion (US$105.9 billion) in 2013. It is anticipated that this value will increase at a CAGR of 3.91% over the forecast period, to reach COP246.3 trillion (US$137 billion) in 2018. In terms of transaction volume, payment cards increased from 636.2 million in 2009 to 885.2 million in 2013, at a review-period CAGR of 8.61%. It is expected to reach 1.1 billion transactions in 2018, growing at a CAGR of 4.10% over the forecast period.
  • Prepaid cards are gaining popularity among Colombian consumers. Banks offer a range of prepaid card variants, such as gift cards, transport cards, food cards, fuel cards and shopping cards, and do not insist on having an account with them to issue these cards. Likewise, the majority of the Colombian companies offer prepaid cards to their employees as part of their salary packages. These cards are offered to meet food and fuel expenses. BBVA Colombia and Banco Davivienda offer Visa-branded prepaid cards called ‘Visa Vale’ to their employees. The growth of the prepaid card market has attracted new entrants. The US-based Latin American prepaid service provider NovoPayment launched its Colombian operations in 2009. The company offers three reloadable MasterCard-branded prepaid corporate cards: the Plata Combustible (money-fuel); the Plata Compras (money-purchases) cash management card; and the Plata Clásica payroll card for the unbanked population.

Scope

  • This report provides a comprehensive analysis of Colombia's cards and payments industry.
  • It provides current values for Colombia's cards and payments industry for 2013, and forecast figures for 2018.
  • It details the different economic, infrastructural and business drivers affecting Colombia'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 Colombia's cards and payments industry.
Reasons to buy

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

  • In terms of the number of cards in circulation, Colombian payment cards (including debit and credit cards) registered a positive growth during the review period, recording a compound annual growth rate (CAGR) of 8.05% and increasing from 22.6 million in 2009 to 30.8 million in 2013. Growth in the industry is expected to be driven by growth in the retail sector, an increasing demand for debit and credit cards, a better regulatory framework, an increasing market for online and mobile commerce and a positive economic outlook.
  • In 2013, the average transaction value (ATV) in Colombia was US$121, which was the second-highest in the Latin-American region. Peru recorded the highest ATV with US$144.3, followed by Chile (US$82.4), Venezuela (US$71.4), Brazil (US$69.6) and Argentina (US$50).
  • Similarly, in terms of card penetration, Colombia recorded 0.7 cards per inhabitant in 2013, while Brazil, Argentina, Chile, Venezuela and Peru recorded 2.6, 1.4, 1.3, 1.1 and 0.6 respectively. In terms of the frequency of use, Colombia recorded 28.7 transactions per card in the same year, while Venezuela, Argentina, Chile, Peru and Brazil recorded respective numbers of 61.2, 42.3, 37.6, 30.2 and 23.7.
  • Colombian payment cards grew both in terms of transaction value and volume during the review period. In terms of transaction value, payment cards posted a CAGR of 10.10%, increasing from COP136.9 trillion (US$63.4 billion) in 2009 to COP201.1 trillion (US$105.9 billion) in 2013. It is anticipated that this value will increase at a CAGR of 3.91% over the forecast period, to reach COP246.3 trillion (US$137 billion) in 2018. In terms of transaction volume, payment cards increased from 636.2 million in 2009 to 885.2 million in 2013, at a review-period CAGR of 8.61%. It is expected to reach 1.1 billion transactions in 2018, growing at a CAGR of 4.10% over the forecast period.
Table of Contents

1 Key Facts and Top Events

2 Executive Summary

3 Payment Instruments
3.1 Current Payments Environment
3.2 Alternative Payment Instruments
3.2.1 Mobile payments
3.2.2 PayPal
3.2.3 Click2Pay
3.2.4 ClickandBuy
3.2.5 Ukash
3.2.6 Neteller
3.2.7 Skrill

4 Market Attractiveness and Future Prospects of Cards and Payments

5 Analysis of Cards and Payments Industry Drivers
5.1 Demographic Drivers
5.2 Economic Drivers
5.3 Infrastructure Drivers
5.4 Business Drivers

6 Emerging Consumer Attitudes and Trends
6.1 Market Segmentation and Targeting
6.1.1 Consumer cards
6.1.2 Corporate cards
6.2 New Product Launches
6.3 Travel Spending
6.3.1 Outbound trips volume and spending
6.3.2 Inbound trips volume and spending

7 Payment Cards
7.1 Payment Cards Instrument Analysis
7.1.1 Number of cards in circulation by card type
7.1.2 Transaction volume by card type
7.1.3 Transaction value by card type
7.1.4 Personal vs commercial cards

8 Debit Cards
8.1 Debit Cards Market Analysis
8.1.1 Number of debit cards in circulation
8.1.2 Debit cards transaction volume by channel
8.1.3 Debit cards transaction value by channel
8.1.4 Number of debit cards in circulation by scheme
8.1.5 Debit cards transaction value by scheme
8.1.6 Debit cards issuers market shares
8.1.7 Debit cards comparison

9 Credit Cards
9.1 Credit Cards Market Analysis
9.1.1 Number of credit cards in circulation
9.1.2 Credit cards transaction volume by channel
9.1.3 Credit cards transaction value by channel
9.1.4 Number of credit cards in circulation by scheme
9.1.5 Credit cards transaction value by scheme
9.1.6 Credit cards issuers market share
9.1.7 Credit cards comparison

10 Commercial Cards
10.1 Commercial Cards Market Analysis
10.1.1 Number of commercial cards in circulation
10.1.2 Commercial cards transaction value
10.1.3 Commercial cards comparison

11 Regulations in the Cards and Payments Industry
11.1 Regulatory Framework
11.2 Anti-Money Laundering (AML)
11.3 Foreign Direct Investment (FDI) Regulations

12 Card Fraud Statistics
12.1 Card Fraud Analysis

13 Card Issuers
13.1 Bancolombia
13.2 Banco Davivienda
13.3 BBVA Colombia
13.4 Banco de Bogotá
13.5 Banco Caja Social

14 Card Schemes
14.1 Visa
14.2 MasterCard
14.3 American Express
14.4 Diners Club

15 Prepaid Cards
15.1 Prepaid Cards Market Analysis
15.1.1 Number of prepaid cards in circulation
15.1.2 Prepaid cards transaction value
15.1.3 Open-loop prepaid cards
15.1.4 Closed-loop prepaid cards
15.1.5 Prepaid cards comparison

16 Appendix
16.1 Tables
16.2 Methodology
16.3 Contact Timetric
16.4 About Timetric
16.5 Timetric’s Services
16.6 Definitions
16.7 Disclaimer

List of Table

Table 1: Colombia – Key Facts, 2013
Table 2: Regional Benchmarking of Colombian Payment Cards Instrument, 2013
Table 3: Cards for High-Income Customers
Table 4: Cards for Students and Young Population, 2014
Table 5: Cards for Online Shoppers, 2014
Table 6: Cards for Frequent Travelers, 2014
Table 7: Cards for Female Population, 2014
Table 8: Co-branded Cards, 2014
Table 9: Colombia – Commercial Cards Comparison and Key Features, 2014
Table 10: Colombia – New Product Launches
Table 11: Regional Benchmarking of Colombian Debit Cards, 2013
Table 12: Colombia – Debit Cards Comparison and Key Features
Table 13: Regional Benchmarking of Colombian Credit Cards, 2013
Table 14: Colombia – Gold Credit Cards Comparison and Key Features
Table 15: Colombia – Premium Credit Cards Comparison and Key Features
Table 16: Colombia – Commercial Cards Comparison and Key Features
Table 17: Colombia – Market Entry Strategies of Foreign Banks
Table 18: Regional Benchmarking of Colombian Prepaid Cards, 2013
Table 19: Colombia – Prepaid Cards Comparison and Key Features
Table 20: Colombia – Payment Instruments Transaction Value (COP Trillion), 2009–2013
Table 21: Colombia – Payment Instruments Transaction Value (US$ Billion), 2009–2013
Table 22: Colombia – Payment Instruments Transaction Volume (Million), 2009–2013
Table 23: Colombia – Number of Cards in Circulation by Card Type (Million), 2009–2018
Table 24: Colombia – Transaction Volume by Card Type (Million), 2009–2018
Table 25: Colombia – Transaction Value by Card Type (COP Trillion), 2009–2018
Table 26: Colombia – Transaction Value by Card Type (US$ Billion), 2009–2018
Table 27: Colombia – Personal and Commercial Cards Transaction Value (COP Billion), 2009–2018
Table 28: Colombia – Personal and Commercial Cards Transaction Value (US$ Billion), 2009–2018
Table 29: Colombia – Number of Debit Cards in Circulation (Million), 2009–2018
Table 30: Colombia – Debit Cards Transaction Volume and Frequency by Channel, 2009–2018
Table 31: Colombia – Debit Cards Total and Average Transaction Value by Channel, 2009–2018
Table 32: Colombia – Debit Cards Total and Average Transaction Value by Channel, 2009–2018
Table 33: Colombia – Number of Debit Cards in Circulation By Scheme (Thousand), 2009–2013
Table 34: Colombia – Debit Cards Transaction Value By Scheme (COP Trillion), 2009–2013
Table 35: Colombia – Debit Cards Transaction Value By Scheme (US$ Billion), 2009–2013
Table 36: Colombia – Debit Cards Transaction Value by Issuer (COP Million), 2009–2013
Table 37: Colombia – Debit Cards Transaction Value by Issuer (US$ Billion), 2009–2013
Table 38: Colombia – Number of Credit Cards in Circulation (Million), 2009–2018
Table 39: Colombia – Credit Cards Transaction Volume and Frequency by Channel, 2009–2018
Table 40: Colombia – Credit Cards Total and Average Transaction Value by Channel, 2009–2018
Table 41: Colombia – Credit Cards Total and Average Transaction Value by Channel, 2009–2018
Table 42: Colombia – Number of Credit Cards in Circulation By Scheme (Thousand), 2009–2013
Table 43: Colombia – Credit Cards Transaction Value By Scheme (COP Trillion), 2009–2013
Table 44: Colombia – Credit Cards Transaction Value By Scheme (US$ Billion), 2009–2013
Table 45: Colombia – Credit Cards Transaction Value By Issuer (COP Trillion), 2009–2013
Table 46: Colombia – Credit Cards Transaction Value By Issuer (US$ Billion), 2009–2013
Table 47: Colombia – Credit Cards Balance Outstanding By Issuer (COP Trillion), 2009–2013
Table 48: Colombia – Credit Cards Balance Outstanding By Issuer (US$ Billion), 2009–2013
Table 49: Colombia – Number of Commercial Cards in Circulation (Thousand), 2009–2018
Table 50: Colombia – Commercial Cards Transaction Value (COP Billion), 2009–2018
Table 51: Colombia – Commercial Cards Transaction Value (US$ Million), 2009–2018
Table 52: Colombia – Card Fraud (COP Million), 2009–2013
Table 53: Colombia – Card Fraud (US$ Million), 2009–2013
Table 54: Colombia – Number of Prepaid Cards in Circulation (Million), 2009–2018
Table 55: Colombia – Prepaid Cards Transaction Value (COP Trillion), 2009–2018
Table 56: Colombia – Prepaid Cards Transaction Value (US$ Billion), 2009–2018
Table 57: Colombia – Open-Loop Prepaid Cards, 2009–2018
Table 58: Colombia – Closed-Loop Prepaid Cards, 2009–2018
Table 59: Key Definitions

List of Chart

Figure 1: Colombia – Payment Instruments Shares by Transaction Value (%), 2009 and 2013
Figure 2: Colombia – Payment Instruments Shares by Transaction Volume (%), 2009 and 2013
Figure 3: Colombia – Payment Cards Transaction Value and Growth, 2009–2018
Figure 4: Colombia – Total Population (Million) and Proportion Between 15–64 Years, 2009–2018
Figure 5: Colombia – Nominal GDP Per Capita (US$) and Real GDP Growth Rate (%), 2009–2018
Figure 6: Colombia – Volume of ATMs and Penetration, 2009–2018
Figure 7: Colombia – Volume of POS Terminals and Penetration, 2009–2018
Figure 8: Colombia – Retail Sales Value (COP Trillion), 2009–2018
Figure 9: Colombia – Cards and Payments Industry Segmentation by Card Type
Figure 10: Colombia – Outbound Trips Volume and Spending, 2009–2018
Figure 11: Colombia – Inbound Trips Volume and Spending, 2009–2018
Figure 12: Colombia – Card Shares In Terms of Numbers in Circulation (%), 2009–2018
Figure 13: Colombia – Card Shares in Terms of Transaction Volume (%), 2009–2018
Figure 14: Colombia – Card Shares in Terms of Transaction Value (%), 2009–2018
Figure 15: Colombia – Personal and Commercial Cards, Transaction Value (COP Billion), 2009–2018
Figure 16: Colombia – Number of Debit Cards in Circulation (Million), 2009–2018
Figure 17: Colombia – Debit Cards Transaction Volume by Channel (Million), 2009–2018
Figure 18: Colombia – Debit Cards Transaction Value by Channel (COP Trillion), 2009–2018
Figure 19: Colombia – Debit Cards Scheme Shares in Terms of Number of Cards in Circulation (%), 2013
Figure 20: Colombia – Debit Cards Scheme Market Share in Terms of Transaction Value (%), 2013
Figure 21: Colombia – Debit Cards Issuers’ Market Shares in Terms of Transaction Value (%), 2013
Figure 22: Colombia – Number of Credit Cards in Circulation (Million), 2009–2018
Figure 23: Colombia – Credit Cards Transaction Volume by Channel (Million), 2009–2018
Figure 24: Colombia – Credit Cards Transaction Value by Channel (COP Billion), 2009–2018
Figure 25: Colombia – Credit Cards Scheme Market Share in Terms of Number of Cards in Circulation (%), 2013
Figure 26: Colombia – Credit Cards Scheme Market Share in Terms of Transaction Value (%), 2013
Figure 27: Colombia – Credit Cards Issuers’ Market Share in Terms of Transaction Value (%), 2013
Figure 28: Colombia – Credit Cards Issuers’ Market Share in Terms of Outstanding Balance (%), 2013
Figure 29: Colombia – Number of Commercial Cards in Circulation (Thousand), 2009–2018
Figure 30: Colombia – Commercial Cards Transaction Value (COP Billion), 2009–2018
Figure 31: Colombia – Shares of Various Types of Card Fraud in Terms of Transaction Value (%), 2009 and 2013
Figure 32: Colombia – Number of Prepaid Cards in Circulation (Million), 2009–2018
Figure 33: Colombia – Prepaid Cards Transaction Value (COP Trillion), 2009–2018

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