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Emerging Opportunities in Chiles Cards and Payments Industry: Market Size, Trends and Drivers, Strategies, Products and Competitive Landscape

Published By :

Timetric

Published Date : Jan 2013

Category :

Banking

No. of Pages : 93 Pages


Synopsis

The report provides market analysis, information and insights into Chiles cards and payments industry, including:
  • Current and forecast values for each category of Chiles cards and payments industry including debit cards, credit cards, prepaid cards and charge cards
  • Comprehensive analysis of the industrys market attractiveness and future growth areas
  • Analysis of various market drivers and regulations governing Chiles cards and payments industry
  • Detailed analysis of the marketing strategies adopted for selling various categories of cards such as debit, credit, prepaid and charge cards used by various bankers and other institutions in the market
  • Comprehensive analysis of consumer attitudes and their buying preferences for cards
  • Competitive landscape of Chiles cards and payments industry

Summary

Chiles cards and payments industry as a whole grew at a CAGR of 15.22% during the review period (20082012). Cuenta Rut accounts are expected to contribute to positive growth in the debit card category. Cuenta Rut, a scheme that provides bank accounts to all Chileans above the age of 15, issued by BancoEstado, is offered to all Chileans above the age of 15, and in 2011 there were 4.2 million Cuenta Rut account holders at BancoEstado, 24.42% of the total Chilean population. The number of Cuenta Rut account holders increased at a CAGR of 35.77% between 2007 and 2011. Cuenta Rut account growth witnessed significant growth as the account is provided to all the Chilean population with minimum documentation. The account can be opened in person, over the telephone or internet, or through banking agents and this has resulted in increased penetration of the scheme. Account holders are not issued checks, but are given debit cards, which is expected to increase the volume and value growth of the debit card category over the forecast period. Bank-issued credit cards constitute only a nominal share of the total credit cards issued in the economy. The largest non-bank credit card issuer was Total Promotora CMR Falabella SA which occupied 40% of the credit card category. The second-largest issuer was Total Car SA, with 18.74%, followed by Total Cencosud Administradora de Tarjetas SA with 18.55%. The prepaid card category was also dominated by closed-loop prepaid cards issued by non-bank card issuers. The branchless banking model adopted by Chilean banks is expected to increase the volume of bank-issued cards in the forecast period. For example, BancoEstado offers banking services through Cajas Vecinas, nearly 65% of the operations of which take place after normal banking hours. Conventional banks in Chile operate for only five hours per day, between 9am to 2pm Monday to Friday. Caja Vecinas offers all normal banking products, and enables people living in remote regions to conduct transactions through POS terminals installed in retail stores. Caja Venicas is expected to play a major role in taking card-based payments to the rural population of the country.

Scope
  • This report provides a comprehensive analysis of Chiles cards and payments industry
  • It provides current values for Chiles cards and payments industry for 2012 and forecast figures for 2017
  • It details the different macroeconomic, infrastructural, consumer and business drivers affecting Chiles cards and payments industry
  • It outlines the current regulatory framework in the industry
  • It details the marketing strategies used by various bankers and other institutions
  • It profiles the major banks in Chiles cards and payments industry

Reasons To Buy
  • Make strategic business decisions using historic and forecast market data related to Chiles cards and payments industry and each market within it
  • Understand the key market trends and growth opportunities within Chiles cards and payments industry
  • Assess the competitive dynamics in Chiles cards and payments industry
  • Gain insights into the marketing strategies used for selling various categories of cards in Chile
  • Gain insights into key regulations governing Chiles cards and payments industry

Key Highlights
  • The Chilean cards and payments industry as a whole grew at a CAGR of 15.36% during the review period. The total number of cards increased from 16.5 million in 2008 to 29.1 million in 2012. The cards and payments industry is expected to grow at a CAGR of 6.87% over the forecast period.
  • Prepaid cards will be the most attractive card category in the forecast period. The prepaid card category constituted 28.6% of the overall cards and payments industry in 2012, and grew at a CAGR of 20.11% during the review period. The closed-loop cards segment is expected to record the largest growth, with the supply expected to come from large-scale retail outlets such as Falabella, Ripley and Farmacias Ahumada.
  • Bank-issued credit cards constitute only a nominal share of the total credit cards issued in the economy. The largest non-bank credit card issuer was Total Promotora CMR Falabella SA which occupied 40% of the credit card category. The second-largest issuer was Total Car SA, with 18.74%, followed by Total Cencosud Administradora de Tarjetas SA with 18.55%. The prepaid card category was also dominated by closed-loop prepaid cards issued by non-bank card issuers. 
  • The branchless banking model adopted by Chilean banks is expected to increase the volume of bank-issued cards in the forecast period. For example, BancoEstado offers banking services through Cajas Vecinas, nearly 65% of the operations of which take place after normal banking hours. Caja Venicas is expected to play a major role in taking card-based payments to the rural population of the country.
Table of Content

1 Executive Summary

2 Market Attractiveness and Future Prospects of Cards and Payments Industry

3 Analysis of Chiles Cards and Payments Industry Drivers
3.1 Macroeconomic Drivers
3.1.1 GDP
3.1.2 Total investment
3.1.3 Low inflation
3.1.4 Low unemployment
3.2 Infrastructure Drivers
3.2.1 Growth of POS terminals
3.2.2 Growing number of ATMs
3.2.3 Growth of mobile penetration
3.2.4 Growth of internet penetration
3.2.5 EMV cards and other security requirements
3.3 Business Drivers
3.3.1 Cuenta Rut
3.3.2 Mobile payments
3.3.3 Closed-loop prepaid cards
3.3.4 Social commerce
3.4 Consumer Drivers
3.4.1 Annual disposable income
3.4.2 Economically active population
3.4.3 Growth of real consumer loans
3.5 Card Fraud Statistics
3.5.1 Card fraud by channel
3.5.2 Card fraud statistics by region
3.6 Regulatory Framework

4 Emerging Consumer Attitudes and Trends
4.1 Market Segmentation and Targeting
4.2 Consumer Preference
4.2.1 Price
4.2.2 Convenience
4.2.3 Value-added services
4.2.4 Rewards
4.2.5 Security
4.3 Online Buying Behavior
4.3.1 Growth of online retail sales in Chile
4.3.2 Reasons for purchasing online
4.3.3 Mobile commerce growth in Chile
4.3.4 Terminal and handset growth
4.4 Preferred Payment Methods

5 Competitive Landscape and Industry Dynamics
5.1 Market Share Analysis by Payment Channels
5.1.1 Overview of payment channels
5.2 Debit Cards
5.2.1 By bank
5.2.2 By scheme
5.3 Credit Cards
5.3.1 By bank
5.3.2 By scheme
5.3.3 Non-bank issuers of credit cards
5.3.4 Share of major non-bank credit card issuers

6 Strategies Adopted by Key Players
6.1 Market Entry Strategies
6.2 Marketing / Product Strategy
6.2.1 Debit cards
6.2.2 Credit cards
6.2.3 Prepaid cards
6.3 Pricing Strategies

7 Market Size and Growth Potential of Industry
7.1 Market Share Analysis by Type of Card
7.2 Total Market Size and Forecast of Card Industry
7.2.1 Analysis by number of cards
7.2.2 Analysis by transaction value
7.2.3 Analysis by transaction volume
7.3 Debit Card Market Size and Forecast
7.3.1 Analysis by number of cards
7.3.2 Analysis by transaction value
7.3.3 Analysis by transaction volume
7.3.4 Other key performance indicators
7.4 Prepaid Card Market Size and Forecast
7.4.1 Analysis by number of cards
7.4.2 Analysis by segment closed-loop and open-loop cards
7.5 Credit Card Market Size and Forecast
7.5.1 Analysis by number of cards
7.5.2 Analysis by transaction value
7.5.3 Analysis by transaction volume
7.5.4 Other key performance indicators

8 Company Profiles, Product and Marketing Strategies
8.1 Banco Santander-Chile
8.1.1 Strategies
8.1.2 Debit cards offered
8.1.3 Credit cards offered
8.2 BBVA Chile
8.2.1 Strategies
8.2.2 Credit cards offered
8.3 BancoEstado
8.3.1 Strategies
8.3.2 Debit cards offered
8.3.3 Credit cards offered
8.4 Scotiabank, Chile
8.4.1 Strategies
8.4.2 Debit cards offered
8.4.3 Credit cards offered

9 Appendix
9.1 Methodology
9.2 Definitions
9.3 Methodology
9.4 Contact Us
9.5 About Timetric
9.6 Disclaimer

List of Table


Table 1: Chile Payment Channels (CLP Million), 2008 and 2012
Table 2: Non-Bank Credit Card Issuers and Number of Cards, June 2012
Table 3: Companies in the Chilean Banking Sector
Table 4: Interest Rate on Credit Cards (%), November 2012
Table 5: Annual Maintenance Fee on Credit Cards (CLP), November 2012
Table 6: Credit Card Fee of Selected Banks
Table 7: Chile Cards and Payments Industry by Type of Card (Thousands), 20082017
Table 8: Chile Industry Size by Volume (Thousand), 20082017
Table 9: Chile Industry Size by Transaction Value (CLP Million), 20082017
Table 10: Chile Industry Size by Transaction Value (US$ Million), 20082017
Table 11: Chile Industry Size by Transaction Volume (Million), 20082017
Table 12: Chile Debit Card Category Size (Thousand), 20082017
Table 13: Chile Debit Card Category Size (CLP Million), 20082017
Table 14: Chile Debit Card Category Size (US$ Million), 20082017
Table 15: Chile Debit Card Category Size by Transaction Volume (Million), 20082017
Table 16: Chile Card Category Size by Frequency of Use (Transaction/Card/Year), 20082017
Table 17: Chile Prepaid Card Category Size (Thousand), 20082017
Table 18: Chile Open-Loop Prepaid Cards Segment Size (Thousand), 20082017
Table 19: Chile Closed-Loop Prepaid Cards Segment Size (Thousand), 20082017
Table 20: Chile Prepaid Cards Category Size (CLP Million), 20082017
Table 21: Chile Prepaid Cards Category Size (US$ Million), 20082017
Table 22: Chile Credit Card Category Size by Volume (Thousand), 20082017
Table 23: Chile Credit Card Category Size by Transaction Value (CLP Million), 20082017
Table 24: Chile Credit Card Category Size by Transaction Value (US$ Million), 20082017
Table 25: Chile Credit Card Category Size by Transaction Volume (Million), 20082017
Table 26: Chile Credit Card Category Size by Frequency of Use (Transaction/Card/Year), 20082017
Table 27: Chile Credit Card Category Size by Average Transaction Value (CLP), 20082017
Table 28: Chile Credit Card Category Size by Average Transaction Value (US$), 20082017
Table 29: Key Definitions

List of Chart


Figure 1: Current and Future Prospects of Various Cards in Chile
Figure 2: Growth Potential of the Chilean Cards and Payments Industry by Area of Usage
Figure 3: Chiles Cards and Payments Industry Drivers
Figure 4: Chilean GDP at Constant Prices (% Change), 20082017
Figure 5: Total Investment (% of GDP), 20082017
Figure 6: Inflation, Average Consumer Prices (% Change), 20082017
Figure 7: Unemployment Rate (% of Total Labor Force), 20082017
Figure 8: Number of POS Terminals in Chile (Thousands), 20082017
Figure 9: Number of ATMs in Chile (Thousands), 20082017
Figure 10: Mobile Penetration in Chile (%), 20082012
Figure 11: Internet Penetration in Chile (%), 20082012
Figure 12: Number of Cuenta Rut Account Holders, 20082011
Figure 13: Growth of M-Payments (CLP Million), 20082017
Figure 14: Growth of Annual Disposable Income (CLP Million), 20082017
Figure 15: Economically Active Population in Chile, 20082017
Figure 16: Real Consumer Loans in the Chilean Economy (CLP Million), Q1 2008Q3 2012
Figure 17: Chilean Card Fraud Statistics (CLP Million), 20082012
Figure 18: Card Fraud Statistics in Latin American Countries (US$ Million), 20082012
Figure 19: Chilean Cards and Payments Industry Segmentation by Card Type
Figure 20: Consumer Preferences on Various Types of Cards
Figure 21: Share of Various Goods in Total E-Commerce Sales (%), 2012
Figure 22: Value of Online Retail Sales in Chile (CLP Million), 2012
Figure 23: Top Reasons for Shopping Online (%), 2011
Figure 24: Chilean Telecom Market (%), 2011
Figure 25: Growth of Terminals and Handsets (Million Units), 20052015
Figure 26: Share of Different Online Payment Options in Chile (%), 2011
Figure 27: Chile Share of Payment Channels (%), 2012
Figure 28: Chile Value and Growth of Check Payments (CLP Million), 20082012
Figure 29: Chile Value and Growth of Card Payments (CLP Million), 20082012
Figure 30: Chile Value and Growth of Cash Payments (CLP Million), 20082012
Figure 31: Chile Debit Card Share by Banks (%), 2011
Figure 32: Chile Debit Card Share by Schemes (%), 2011
Figure 33: Chile Credit Card Share by Banks (%), 2011
Figure 34: Chile Credit Card Share by Scheme (%), 2011
Figure 35: Share Of Major Non-Bank Credit Card Issuers (%), June 2012
Figure 36: Marketing Strategies of Banks in Chile
Figure 37: Chile Cards and Payments Industry by Type of Card (%), 20082017
Figure 38: Chile Industry Size by Volume (Thousand), 20082017
Figure 39: Chile Industry Size by Transaction Value (CLP Million), 20082017
Figure 40: Chile Industry Size by Transaction Volume (Million), 20082017
Figure 41: Chile Debit Card Category Size (Thousand), 20082017
Figure 42: Chile Debit Card Category Size (CLP Million), 20082017
Figure 43: Chile Debit Card Category Size by Transaction Volume (Million), 20082017
Figure 44: Chile Card Category Size by Frequency of Use (Transaction/Card/Year), 20082017
Figure 45: Debit Card Usage ATMs and POS Terminals (Million), 20082017
Figure 46: Chile Prepaid Card Category Size (Thousand), 20082017
Figure 47: Chile Open-Loop Prepaid Cards Segment Size (Thousand), 20082017
Figure 48: Chile Closed-Loop Prepaid Cards Segment Size (Thousand), 20082017
Figure 49: Chile Prepaid Cards Category Size (CLP Million), 20082017
Figure 50: Chile Credit Card Category Size by Volume (Thousand), 20082017
Figure 51: Chile Credit Card Category Size by Transaction Value (CLP Million), 20082017
Figure 52: Chile Credit Card Category Size by Transaction Volume (Million), 20082017
Figure 53: Chile Credit Card Category Size by Frequency of Use (Transaction/Card/Year), 20082017
Figure 54: Chile Credit Card Category Size by Average Transaction Value (CLP), 20082017
Figure 55: Banco Santander-Chile Segmentation of Cards Offered
Figure 56: BBVA Chile Segmentation of Cards Offered
Figure 57: BancoEstado Segmentation of Cards Offered
Figure 58: Scotiabank, Chile Segmentation of Cards Offered

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