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

Published By :

Timetric

Published Date : May 2013

Category :

Banking

No. of Pages : 81 Pages

Synopsis

The report provides market analysis, information and insights into Colombia’s cards and payments market, including:

  • Current and forecast values for each category of Colombia’s cards and payments industry including debit cards, credit cards, prepaid cards and charge 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, charge and prepaid 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 Colombia’s cards and payments industry

Executive summary

Colombia is the fourth-largest economy in Latin America. It had a population of 46 million in 2012, of which 15.7 million lived below the poverty line. Colombia has a huge unbanked population with more than 40% of the population not holding a bank account. Low banking penetration presents huge potential for card companies in the country. The number of payment cards in circulation registered a CAGR of 11.69% during the review period to reach 51.7 million cards in 2012. 

The total value of card transactions reached COP207.6 billion (US$2.3 billion) in 2012. Card payments are expected to deliver strong growth over the forecast period as consumers are increasingly moving away from cash transactions. The Colombian card payments industry grew both in terms of volume and value during the review period. In terms of transaction volume, the industry grew at a CAGR of 7.14% from 593 million transactions in 2008 to 781.3 million in 2012. It is anticipated that this volume will grow at a CAGR of 6.04% over the forecast period, to reach 1.06 billion transactions in 2017.

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 2012 and forecast figures for 2017
  • It details the different macroeconomic, infrastructural, consumer 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 bankers and other institutions
  • It profiles the major banks in Colombia’s cards and payments industry

Key highlights

  • The implementation of improved security measures and advanced technology changed the dynamics of the card payments industry in Colombia. According to Superintendencia’s Circular 052 directive, all Colombian banks are required to migrate their cards and POS terminals to EMV by the end of 2013. Meanwhile, October 2014 is set as the deadline for ATM operators to be EMV-compliant. So far, 35% of MasterCard-branded cards in Colombia have been migrated to EMV.
  • The growing e-commerce market in Colombia is expected to drive growth in the card payments industry over the forecast period. E-commerce is an emerging trend in Colombia and witnessed a high growth of 67%, increasing from US$1.2 billion in 2011 to US$20.0 billion in 2012.
  • Smartphone penetration in Colombia currently stands at 20% but market analysis suggests it possesses huge growth potential. From January 2012 to January 2013, the smartphone market in Colombia grew by 200%. Increasing smartphone penetration will help to drive m-commerce market growth in the country.
  • Colombia is a developing country with sustained economic growth but banking penetration is relatively low in comparison with neighboring countries. The banking penetration in Colombia was 57.6% in 2012. To increase banking penetration in the country, the central government launched the ‘La Banca de las Oportunidades (Opportunities Banking)’ policy. Through this policy, non-banking companies can also provide financial services.

Reasons to buy

  • Make strategic business decisions using 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 within Colombia’s cards and payments industry
  • Assess the competitive dynamics in Colombia’s cards and payments industry
  • Gain insights into the marketing strategies used for selling various types of cards in Colombia
  • Gain insights into key regulations governing Colombia’s cards and payments industry
Table of contents

1 Executive Summary

2 Market Attractiveness and Future Prospects of Card Payments Industry

3 Analysis of Colombian Payment Cards Market Drivers
3.1 Macroeconomic Fundamentals
3.1.1 High GDP growth rate
3.1.2 Increasing per capita income
3.1.3 Improvement in employment
3.2 Infrastructure Drivers
3.2.1 EMV migration growing in Colombia
3.2.2 Number of point-of-sale (POS) terminals
3.2.3 Launch of contactless cards
3.2.4 Growing number of ATMs
3.3 Business Drivers
3.3.1 E-commerce growth
3.3.2 M-commerce dynamics
3.3.3 Growth of tourism
3.4 Consumer Drivers
3.4.1 Urban versus rural population
3.4.2 Annual disposable income
3.4.3 Large unbanked population
3.4.4 Declining poverty rate
3.5 Card Fraud Statistics
3.6 Regulatory Framework
3.6.1 KYC policy
3.6.2 Transaction verification
3.6.3 Regulation with respect to anti-money laundering
3.6.4 New law on protection of consumer rights

4 Emerging Consumer Attitudes and Trends
4.1 Market Segmentation and Targeting
4.1.1 Retail sector
4.1.2 Corporate sector
4.2 Consumer Preference
4.2.1 Price
4.2.2 Convenience
4.2.3 Services
4.3 Online Buying Behaviour
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
5.1.2 Cash transaction
5.1.3 Credit transfer
5.1.4 Cards
5.1.5 Checks
5.2 Debit Cards Category Share
5.2.1 By bank
5.2.2 By scheme
5.3 Credit Cards Category Share
5.3.1 By bank
5.3.2 By scheme

6 Strategies Adopted by Key Operators
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 Card Payments Industry
7.1 Market Share Analysis by Type of Card
7.2 Total Market Size and Forecast of Card Payments 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 card volume
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 card volume
7.4.2 Analysis by transaction value
7.5 Credit Card Market Size and Forecast
7.5.1 Analysis by card volume
7.5.2 Analysis by card 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 Davivienda
8.1.1 Strategies
8.2 BBVA Colombia
8.2.1 Strategies
8.3 Banco de Bogota
8.3.1 Strategies
8.4 Banco de Occidente
8.4.1 Strategies

9 Appendix
9.1 Methodology
9.1 Contact Us
9.2 About Timetric
9.3 Disclaimer

List of Table


Table 1: Colombian Payment Channels (COP Billion), 2008–2012
Table 2: Colombian Card Payments Industry by Type of Card (Thousands), 2008–2017
Table 3: Colombian Card Payments Industry Size by Volume (Thousands), 2008–2017
Table 4: Colombian Card Payments Industry Size by Transaction Value (COP Billion), 2008–2017
Table 5: Colombian Card Payments Industry Size by Transaction Value (US$ Billion), 2008–2017
Table 6: Colombian Card Payments Industry Size by Transaction Volume (Million), 2008–2017
Table 7: Colombian Debit Card Category Size by Volume (Thousands), 2008–2017
Table 8: Colombian Debit Card Category Size by Transaction Value (COP Billion), 2008–2017
Table 9: Colombian Debit Card Category Size by Transaction Value (US$ Billion), 2008–2017
Table 10: Colombian Debit Card Category Size by Transaction Volume (Million), 2008–2017
Table 11: Colombian Debit Card Category by Frequency of Use (Transaction/Card/Year), 2008–2017
Table 12: Colombian Prepaid Card Category Size by Volume (Thousands), 2008–2017
Table 13: Colombian Open-Loop Prepaid Cards Segment Size (Thousands), 2008–2017
Table 14: Colombian Closed-Loop Prepaid Cards Segment Size (Thousands), 2008–2017
Table 15: Colombian Prepaid Cards Category Size by Transaction Value (COP Billion), 2008–2017
Table 16: Colombian Prepaid Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 17: Colombian Credit Card Category Size by Volume (Thousands), 2008–2017
Table 18: Colombian Credit Card Category Size by Transaction Value (COP Billion), 2008–2017
Table 19: Colombian Credit Card Category Size by Transaction Value (US$ Billion), 2008–2017
Table 20: Colombian Credit Card Category Size by Transaction Volume (Million), 2008–2017
Table 21: Colombian Credit Card Category Average Transaction Value (COP), 2008–2017
Table 22: Colombian Credit Card Category Average Transaction Value (US$), 2008–2017

List of Chart


Figure 1: Current and Future Prospects of Various Cards in Colombia (%), 2008–2017
Figure 2: Growth Potential of the Colombian Card Payments Industry by Area of Usage
Figure 3: Colombian Card Payments Industry Market Drivers
Figure 4: Colombian GDP Growth Rate (%), 2008–2017
Figure 5: Colombian Per Capita Income (COP Million), 2008–2012
Figure 6: Colombian Unemployment Rate (%), 2008–2012
Figure 7: Number of POS Terminals in Colombia (Thousands), 2008–2012
Figure 8: Number of ATMs in Colombia (Thousands), 2008–2017
Figure 9: Internet Penetration in Colombia (%), 2008–2017
Figure 10: E-commerce Sales (US$ Million), 2008–2012
Figure 11: Smartphone Sales Growth Rate (%), 2012
Figure 12: Tourist Volume in Colombia (Million), 2008–2012
Figure 13: Urban versus Rural Population (Million), 2008–2012
Figure 14: Colombian Annual Disposable Income (COP Trillion), 2008–2017
Figure 15: Colombian Poverty Rate (%), 2008–2011
Figure 16: Colombian Card Fraud Statistics (COP Million), 2008–2012
Figure 17: Colombian Card Payments Industry Segmentation
Figure 18: Colombian Young Population (Million), 2008–2012
Figure 19: Colombian Female Population (Million), 2008–2012
Figure 20: Cards Targeted at Women in Colombia
Figure 21: Consumer Preferences on Various Types of Cards
Figure 22: Share of Payment Channels in Colombia (%), 2012
Figure 23: Colombian Value of Cash Transactions (COP Trillion), 2008–2012
Figure 24: Colombian Value of Credit Transfer (COP Billion), 2008–2012
Figure 25: Colombian Value of Card Payments (COP Trillion), 2008–2012
Figure 26: Colombian Value of Check Payments (COP Billion), 2008–2012
Figure 27: Colombian Debit Card Category Share by Bank (%), 2011
Figure 28: Colombian Debit Card Category Share by Scheme (%), 2011
Figure 29: Colombian Credit Card Category Share by Bank (%), 2011
Figure 30: Colombian Credit Card Category Share by Scheme (%), 2011
Figure 31: List of Foreign Banks Operating in Colombia
Figure 32: Marketing Strategies Based on Card Type
Figure 33: Promotional Offers on Debit Card
Figure 34: Co-Branded Credit Cards Offered by Banco Davivienda
Figure 35: Promotional Credit Card Offers by Different Bank
Figure 36: Banco Davivienda Gasoline Prepaid Card Features
Figure 37: Prepaid Card With Added Features
Figure 38: Debit and Credit Card Pricing Strategies of Banco de Occidente
Figure 39: Colombian Card Payments Industry by Type of Card (%), 2008–2017
Figure 40: Colombian Card Payments Industry Size by Volume (Thousands), 2008–2017
Figure 41: Colombian Card Payments Industry Size by Transaction Value (COP Billion), 2008–2017
Figure 42: Colombian Card Payments Industry Size by Transaction Volume (Million), 2008–2017
Figure 43: Colombian Debit Card Category Size by Volume (Thousands), 2008–2017
Figure 44: Colombian Debit Card Category Size by Transaction Value (COP Billion), 2008–2017
Figure 45: Colombian Debit Card Category Size by Transaction Volume (Million), 2008–2017
Figure 46: Colombian Debit Card Category by Frequency of Use (Transaction/Card/Year), 2008–2017
Figure 47: Colombian Debit Card Usage at ATMs and POS Terminals (Million), 2008–2017
Figure 48: Colombian Prepaid Card Category Size by Volume (Thousands), 2008–2017
Figure 49: Colombian Open-Loop Prepaid Cards Segment Size (Thousands), 2008–2017
Figure 50: Colombian Closed-Loop Prepaid Cards Segment Size (Thousands), 2008–2017
Figure 51: Colombian Prepaid Cards Category Size by Transaction Value (COP Billion), 2008–2017
Figure 52: Colombian Credit Card Category Size by Volume (Thousands), 2008–2017
Figure 53: Colombian Credit Card Category Size by Transaction Value (COP Billion), 2008–2017
Figure 54: Colombian Credit Card Category Size by Transaction Volume (Million), 2008–2017
Figure 55: Colombian Credit Card Category Average Transaction Value (COP), 2008–2017
Figure 56: Products Offered by Banco Davivienda
Figure 57: Cards Offered by Banco Davivienda
Figure 58: Cards Offered by BBVA Colombia
Figure 59: Cards Offered by Banco de Bogota
Figure 60: Cards Offered by Banco de Occidente

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