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

Published By :

Timetric

Published Date : Nov 2012

Category :

Banking

No. of Pages : 91 Pages

Synopsis

The report provides market analysis, information and insights into Brazil's cards and payments market, including:

  • Current and forecast values for each segment of Brazil's cards and payment market 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 Brazil's cards and payment market
  • Detailed analysis of the marketing strategies adopted for selling 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 Brazil's cards and payments market
Summary

The Brazilian card market has relatively mature credit and debit cards segments and the market as a whole grew at a CAGR of 10.71% during the review period. The prepaid card market in Brazil is emerging and so is the charge card market. Private label cards were also in circulation and are expected to emerge as a mainstream card segment in the forecast period.

The debit and credit markets are mature and are expected to grow only nominally in the forecast period. In the forecast period, the debit card market is expected to post a CAGR of 2.9% and the credit card market is expected to grow at a CAGR of 6.5% in volume terms. However the prepaid and charge card markets are expected to be the prime drivers of the Brazilian card market. The charge card market is expected to grow at a CAGR of 7.3% and the prepaid card market is expected to grow at a CAGR of 9.3% in volume terms during the forecast period.

A key factor that spurred the growth of the Brazilian prepaid card market is the government legislation that levied a 6.38% charge on all foreign transactions made through Brazilian credit cards. However, since prepaid cards are preloaded with the Brazilian real, the transactions made through them are treated as domestic payments and have a lower tax rate of 0.38%. This has resulted in large scale subscription of prepaid cards.

Scope

  • This report provides a comprehensive analysis of Brazil's cards and payments market
  • It provides current values for Brazil's cards and payments market for 2011 and forecast figures for 2016
  • It details the different macroeconomic, infrastructural, consumer and business drivers affecting Brazil'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 the Brazilian cards and payments market
Reasons To Buy

  • Make strategic business decisions using historic and forecast market data related to Brazil's cards and payments market and each market within it
  • Understand the key market trends and growth opportunities within Brazil's cards and payments market
  • Assess the competitive dynamics in Brazil's cards and payments market
  • Gain insights into the marketing strategies used for selling various types of cards in the Brazilian market
  • Gain insights into key regulations governing Brazil's cards and payment market
Key Highlights

  • A key factor that spurred the growth of the Brazilian prepaid card market is the government legislation that levied a 6.38% charge on all foreign transactions made through Brazilian credit cards.
  • The forecasted growth in the card market is expected to be fuelled by number of key business drivers. These include growth of online commerce, growth of tourism, innovative product offerings, growth of retail sales volume, and growth of private label cards.
  • High internet penetration is expected to boost online commerce, which in turn is expected to foster card market growth. Large tourist inflows into the country are expected to fuel the demand for travel cards and transit cards. 
  • The regulatory landscape in the cards and payments sector is undergoing significant change and the stance of the central bank is to pursue steps that promote competition in the market.
Table of Content

1 Executive Summary

2 Market Attractiveness and Future Prospects of Cards and Payments Industry

3 Analysis of Brazilian Cards and Payments Market Drivers
3.1 Macroeconomic Fundamentals
3.1.1 Gross domestic product (GDP) growth
3.1.2 Easing inflationary pressure
3.1.3 Expected decline in Selic Target Rate
3.1.4 Low Unemployment
3.1.5 Growth oriented fiscal policy
3.2 Infrastructure Drivers
3.2.1 NFC 18
3.2.2 Fingerprint Biometric enabled ATMs
3.2.3 Seismic Sensors
3.2.4 Anti-skimming technology
3.2.5 Growing number of ATMs
3.2.6 Point of sale terminals (POS)
3.3 Business Drivers
3.3.1 Growth of Online Commerce
3.3.2 Growth of Tourism
3.3.3 Central bank efforts to discourage use of check
3.3.4 Global events
3.3.5 Innovative product offerings
3.3.6 Retail Sales Volume
3.3.7 Growth of private label cards
3.4 Consumer Drivers
3.4.1 Increasing Consumption Expenditure
3.4.2 Demographic advantages
3.4.3 Growth of middle-class and upper income consumer segments
3.4.4 Increasing inflow of foreign tourists and internal migration within the country
3.4.5 Emergence of new spending and saving patterns
3.4.6 Increasing number of benefit card users
3.5 Card Fraud Statistics
3.5.1 By channel
3.6 Regulatory Framework
3.6.1 International Capital and Foreign Exchange Market Regulation
3.6.2 Central Bank regulation on functioning of clearing and settlement systems
3.6.3 Other specific legislations pertaining to prepaid cards 

4 Emerging Consumer Attitudes and Trends
4.1 Market Segmentation and Targeting
4.1.1 Retail segment
4.1.2 Corporate Consumers
4.2 Consumer Preference Price, Convenience, and Services
4.2.1 Price
4.2.2 Convenience
4.2.3 Services
4.3 Online Buying Behaviour
4.3.1 Mobile and Internet Penetration and gadgets used
4.3.2 Online security
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
5.1.3 Credit transfer
5.1.4 Direct Debit
5.1.5 Cards
5.1.6 Checks
5.2 Debit Cards Market Share
5.2.1 By scheme
5.3 Credit Cards Market Share
5.3.1 By scheme
5.4 Charge Cards Market Share 

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 Payment Card 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 transaction value
7.3.2 Analysis by transaction volume
7.3.3 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 segments open loop cards and close loop cards
7.4.3 Analysis by transaction value
7.5 Charge 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
7.6 Credit Card Market Size and Forecast
7.6.1 Analysis by number of cards
7.6.2 Analysis by transaction value
7.6.3 Analysis by transaction volume
7.6.4 Other key performance indicators
7.6.5 Average Transaction Value 

8 Profile of Key Players, Products and Strategies 
8.1 Caixa Econômica Federal 
8.1.1 Strategies 
8.1.2 Credit Cards Offered 
8.2 Banco Bradesco 
8.2.1 Strategies 
8.2.2 Cards Offered 
8.3 Banco Santander Brasil 
8.3.1 Cards offered 

9 Appendix 
9.1 Methodology 
9.2 Definitions 
9.3 Contact Us 
9.4 About Timetric 
9.4.1 Our Approach 
9.5 Services 
9.6 Disclaimer 

List of Table


Table 1: Brazil Payment Channels (CURRENCY Million), 2007 and 2011
Table 2: Brazil Cards Market by Type of Card (Number in Thousands), 2007–2016
Table 3: Brazil Cards Market Size by Volume (Thousands), 2007–2016
Table 4: Brazil Cards Market Size by Transaction Value (BRL Million), 2007–2016
Table 5: Brazil Cards Market Size by Transaction Value (US$ Million), 2007–2016
Table 6: Brazil Cards Market Size by Transaction Volume (Million), 2007–2016
Table 7: Brazil Debit Card Category Market Size (Thousands), 2007–2016
Table 8: Brazil Debit Card Category Market Size (BRL Million), 2007–2016
Table 9: Brazil Debit Card Category Market Size (US$ Million), 2007–2016
Table 10: Brazil Debit Card Category Market Size by Transaction Volume (Million), 2007–2016
Table 11: Brazil Card Category Market Size by Frequency of Use (Transaction/Card/Year), 2007–2016
Table 12: Brazil Prepaid Card Category Market Size (Thousands), 2007–2016
Table 13:Brazil Open-Loop Prepaid Cards Category Market Size (Thousands), 2007–2016
Table 14: Brazil Closed-Loop Prepaid Cards Category Market Size (Thousands), 2007–2016
Table 15: Brazil Prepaid Cards Category Market Size (BRL Million), 2007–2016
Table 16: Brazil Prepaid Cards Category Market Size (US$ Million), 2007–2016
Table 17: Brazil Charge Card Category Market Size (Thousands), 2007–2016
Table 18: Brazil Charge Card Category Market Size (BRL Million), 2007–2016
Table 19: Brazil Charge Card Category Market Size (US$ Million), 2007–2016
Table 20: Brazil Charge Card Category Market Size by Transaction Volume (Million), 2007–2016
Table 21: Brazil Charge Card Category Market Size by Frequency of Use (Transaction/Card/Year), 2007–2016
Table 22: Brazil Credit Card Category Market Size by Volume (Thousands), 2007–2016
Table 23: Brazil Credit Card Category Market Size by Transaction Value (BRL Million), 2007–2016
Table 24: Brazil Credit Card Category Market Size by Transaction Value (US$ Million), 2007–2016
Table 25: Brazil Credit Card Category Market Size by Transaction Volume (Million), 2007–2016
Table 26: Brazil Credit Card Category Market Size by Frequency of Use, 2007–2016
Table 27: Brazil Credit Card Category Market Size by Average Transaction Value (BRL), 2007–2016
Table 28: Brazil Credit Card Category Market Size by Average Transaction Value (US$), 2007–2016
Table 29: Discount rates that can be availed through reward points for various card programmes
Table 30: Cards and Payments Key Definitions

List of Chart


Figure 1: Current and Future Prospects of Various Cards in Brazil
Figure 2: Current and Future Prospects of Various Cards in Brazil
Figure 3: Potential Money Transactions in Key Mobile Money Market Segments in Brazil (US$)
Figure 4: GDP Growth Rate of Brazil, 2006-2016
Figure 5: Inflation Rate in Brazil (%), 20062016
Figure 6: Brazilian Selic Target Rate (%), March 2011 June 2012
Figure 7: Unemployment Rate in Brazil (%), 2006 - 2017
Figure 8: Benefits and Pension Payments (as % of GDP)
Figure 9: Number Of Automated Tailor Machines in Brazil (Thousands), 20072016
Figure 10: Number Of Point-of-Sale Terminals in Brazil (Million), 20072016
Figure 11: Tourist Volume in Brazil (million), 20072016
Figure 12: Sales Volume Index, Brazil, January 2011 June 2012
Figure 13: Household Final Consumption Expenditure (as % of GDP), 20062011
Figure 14: BolsaFamilia Program Expenditure (BRL Billion)
Figure 15: Card Fraud Statistics by Region (US$ Million), 20072011
Figure 16: Brazil Card Fraud Statistics By Channel (BRL Million), 20072011
Figure 17: Market Segmentation in Brazil by Card Type Retail Consumer Segment
Figure 18: Market Segmentation in Brazil by Card Type Corporate Consumer Segment
Figure 19: Consumer Preferences on Various Types of Cards Retail Consumers
Figure 20: Consumer Preferences on Various Types of Cards Corporate Consumers
Figure 21: Economically Active Online Population
Figure 22: Preferred Online Payment Methods (%)
Figure 23: Share of Different Payment Channel in Brazil (%), 2011
Figure 24: Brazil Value and Growth of Cash Transactions (BRL Million), 20072011
Figure 25: Brazil Value and Growth of Credit Transfer (BRL Million), 20072011
Figure 26: Brazil Value and Growth of Direct Debit (BRL Million), 20072011
Figure 27: Brazil Value and Growth of Cards Payment (BRL Million), 20072011
Figure 28: Brazil Value and Growth of Check Payment (BRL Million), 20072011
Figure 29: Brazil Debit Card Market Share by Banks (%), 2011
Figure 30: Brazil Debit Card Market Share by Schemes (%), 2011
Figure 31: Brazil Credit Card Market Share by Bank (%), 2011
Figure 32: Brazil Credit Card Market Share by Schemes (%), 2011
Figure 33: Brazil Charge Card Market Share by Schemes (%), 2011
Figure 34: Marketing Entry Strategies of Multinational Banks in Brazil
Figure 35: Credit Card Pricing Strategies by Brazilian Banks
Figure 36: Brazil Cards Market by Type of Card (%), 20072016
Figure 37: Brazil Cards Market Size by Volume (Thousands), 20072016
Figure 38: Brazil Cards Market Size by Transaction Value (BRL Million), 20072016
Figure 39: Brazil Cards Market Size by Transaction Volume (Million), 20072016
Figure 40: Brazil Debit Card Category Market Size (Thousands), 20072016
Figure 41: Brazil Debit Card Category Market Size (BRL Million), 20072016
Figure 42: Brazil Debit Card Category Market Size by Transaction Volume (Million), 20072016
Figure 43: Brazil Card Category Market Size by Frequency of Use (Transaction/Card/Year), 20072016
Figure 44: Debit Card Usage ATMs and POS Terminals (Thousands), 20072016
Figure 45: Brazil Prepaid Card Category Market Size (Thousands), 20072016
Figure 46: Brazil Open-Loop Prepaid Cards Category Market Size (Thousands), 20072016
Figure 47: Brazil Closed-Loop Prepaid Cards Category Market Size (Thousands), 20072016
Figure 48: Brazil Prepaid Cards Category Market Size (BRL Million), 20072016
Figure 49: Brazil Charge Card Category Market Size (Thousands), 20072016
Figure 50: Brazil Charge Card Category Market Size (BRL Million), 20072016
Figure 51: Brazil Charge Card Category Market Size by Transaction Volume (Million), 20072016
Figure 52: Brazil Charge Card Category Market Size by Frequency of Use(Transaction/Card/Year),
Figure 53: Brazil Credit Card Category Market Size by Volume (Thousands), 20072016
Figure 54: Brazil Credit Card Category Market Size by Transaction Value (BRL Million), 20072016
Figure 55: Brazil Credit Card Category Market Size by Transaction Volume (Million), 20072016
Figure 56: Brazil Credit Card Category Market Size by Frequency of Use, 20072016
Figure 57: Brazil Credit Card Category Market Size by Average Transaction Value (BRL), 20072016
Figure 58: Caixa Econ

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