866-997-4948(US-Canada Toll Free)

The Cards and Payments Industry in Mexico: Emerging trends and opportunities to 2020

Published By :

GlobalData

Published Date : Jun 2017

Category :

Cards & Payments

No. of Pages : N/A

The Cards and Payments Industry in Mexico: Emerging trends and opportunities to 2020

Summary

GlobalDatas "The Cards and Payments Industry in Mexico: Emerging trends and opportunities to 2020" report provides detailed analysis of market trends in the Mexican cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including credit transfers, cheques, direct debits, payment cards and cash during the review period (2012-2016).

The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, transaction values and volumes during the review period and over the forecast period (2016-2020). It also offers information on the country's competitive landscape, including the market shares of issuers and schemes.

The report brings together GlobalDatas research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers details of regulatory policy and recent changes in the regulatory structure.

The report provides top-level market analysis, information and insights into the Mexican cards and payments industry, including -
- Current and forecast values for each market in the Mexican cards and payments industry, including debit, credit and charge cards.
- Detailed insights into payment instruments including credit transfers, cheques, cash, direct debits, and payment cards. It also, includes an overview of the country's key alternative payment instruments.
- E-commerce market analysis and payment methods.
- Analysis of various market drivers and regulations governing the Mexican cards and payments industry.
- Detailed analysis of strategies adopted by banks and other institutions to market debit, credit and charge cards.

Scope

- To combat fraudulent payment activities in Mexico, banks and scheme providers are taking a number of measures, with one example being Mastercards introduction of the Identity Check Mobile solution in November 2016. The solution allows card holders to verify online payment by scanning their fingerprint or taking a selfie. Unlike existing identity verification methods - which take shoppers away from a merchants website or mobile app and often require them to remember and enter a password - Mastercard Identity Check Mobile verifies the user via technologies such as biometrics and one-time passwords. Earlier in January 2015, Oberthur Technologies (OT) partnered with PROSA, a provider of payment processing services, to launch OT Motion Code technology. With Motion Code, the cards CVV code is replaced with a mini-screen on which the CVV code changes automatically at regular intervals, making it impossible for fraudsters to misuse.
- The uptake of alternative payments is gradually increasing in Mexico, with banks and payment solutions providers launching products and services in the market. In partnership with Mastercard, Banamex launched its digital wallet, Banamex Wallet, in February 2016. The Android-compatible mobile app can be used to make contactless m-payments, which are authorized by a four-digit PIN. Users can add all Mastercard-branded credit cards to the wallet. Earlier in June 2014, BBVA Bancomer launched its mobile wallet BBVA Wallet in Mexico. The wallet allows secure NFC payments at merchant locations that accept contactless payments. Available on phones with Android 4.4 and above, other phones can use it through NFC stickers.
- To further enhance financial inclusion, Mexico joined the UN-based Better Than Cash Alliance in June 2016. The move comes after the government introduced a national policy on financial inclusion to promote the use of electronic payments across the country and reduce the dependence on cash. With 86% of the 124.6 million population owning mobile phones, Better Than Cash Alliance aims to harness the popularity of mobile phones for digital payments. Earlier in February 2016, PROSA partnered with digital solutions provider Gemalto to offer m-payment services to its partner banks, which include 95% of credit, debit, and prepaid card issuers in the country. Gemaltos Trusted Service Hub enables banks to offer their own mobile wallets using host card emulation technology, while PROSA is responsible for mobile wallet development, card holder identification and verification, card digitization, and security.

Reasons to buy

- Make strategic business decisions, using top-level historic and forecast market data, related to the Mexican cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in the Mexican cards and payments industry.
- Assess the competitive dynamics in the Mexican cards and payments industry.
- Gain insights into marketing strategies used for various card types in Mexico.
- Gain insights into key regulations governing the Mexican cards and payments industry.
Table of Contents
1. EXECUTIVE SUMMARY 2
1.1. Market overview 2
1.2. Key facts 4
1.3. Top five industry events 5
2. PAYMENT INSTRUMENTS 11
2.1. Current payment environment 11
3. E-COMMERCE AND ALTERNATIVE PAYMENTS 13
3.1. E-commerce market analysis 13
3.2. Alternative payment solutions 15
3.2.1. PayPal 15
3.2.2. Banamex Wallet 15
3.2.3. BBVA Wallet 15
3.2.4. Pagamobil 16
3.2.5. MercadoPago 16
3.2.6. Paysafecard 16
3.2.7. Visa Checkout 16
4. REGULATIONS IN THE CARDS AND PAYMENTS INDUSTRY 17
4.1. Regulatory framework 17
4.1.1. Law on the Transparency and Order of Financial Services 17
4.1.2. Interchange fee regulation 18
4.2. Anti-money laundering 18
4.3. FDI regulations 18
5. ANALYSIS OF CARDS AND PAYMENTS INDUSTRY DRIVERS 19
6. PAYMENT CARDS 22
7. DEBIT CARDS 24
7.1. Debit card market analysis 24
7.2. Competition in the debit card market 26
7.3. Debit card comparison 27
8. PAY-LATER CARDS 28
8.1. Pay-later card market analysis 28
8.2. Competition in the pay-later card market 30
8.3. Pay-later card comparison 32
9. PREPAID CARDS 33
10. MERCHANT ACQUIRING 35
11. APPENDIX 37
11.1. Abbreviations and acronyms 37
11.2. Supplementary data 38
11.3. Definitions 52
11.4. Methodology 54
11.5. Bibliography 56
11.6. Further reading 56

List of Tables
Table 1: Mexico: key facts, 2016 4
Table 2: Mexico: regional benchmarking of payment cards, 2016 4
Table 3: Mexico: mode of entry of foreign banks 18
Table 4: Mexico: debit card comparison and key features, 2016 27
Table 5: Mexico: gold credit cards comparison and key features, 2016 32
Table 6: Mexico: premium credit cards comparison and key features, 2016 32
Table 7: Mexico: charge cards comparison and key features, 2016 32
Table 8: Mexico: payment instrument transaction values (MXNtn), 2012-16e 38
Table 9: Mexico: payment instrument transaction values ($bn), 2012-16e 38
Table 10: Mexico: payment instrument transaction volumes (millions), 2012-16e 38
Table 11: Mexico: payment cards in circulation by type (millions), 2012-20f 38
Table 12: Mexico: volume of payment card transactions (millions), 2012-20f 39
Table 13: Mexico: value of payment card transactions (MXNbn), 2012-20f 39
Table 14: Mexico: value of payment card transactions ($bn), 2012-20f 39
Table 15: Mexico: debit cards in circulation (millions), 2012-20f 39
Table 16: Mexico: debit card transaction volumes, 2012-20f 40
Table 17: Mexico: debit card transaction values (MXN), 2012-20f 40
Table 18: Mexico: debit card transaction values ($), 2012-20f 40
Table 19: Mexico: debit cards in circulation by scheme (millions), 2012-16e 41
Table 20: Mexico: debit card transaction value by scheme (MXNbn), 2012-16e 41
Table 21: Mexico: debit card transaction value by scheme ($bn), 2012-16e 41
Table 22: Mexico: debit card transaction values by issuer (MXNbn), 2012-16e 41
Table 23: Mexico: debit card transaction values by issuer ($bn), 2012-16e 42
Table 24: Mexico: pay-later cards in circulation (millions), 2012-20f 42
Table 25: Mexico: pay-later card transaction volumes, 2012-20f 42
Table 26: Mexico: pay-later card transaction values (MXN), 2012-20f 43
Table 27: Mexico: pay-later card transaction values ($), 2012-20f 43
Table 28: Mexico: pay-later cards in circulation by scheme (000s), 2012-16e 43
Table 29: Mexico: pay-later card transaction values by scheme (MXNbn), 2012-16e 43
Table 30: Mexico: pay-later card transaction values by scheme ($bn), 2012-16e 44
Table 31: Mexico: pay-later card transaction value by issuer (MXNbn), 2012-16e 44
Table 32: Mexico: pay-later card transaction value by issuer ($bn), 2012-16e 44
Table 33: Mexico: credit cards in circulation (millions), 2012-20f 45
Table 34: Mexico: credit card transaction volumes, 2012-20f 45
Table 35: Mexico: credit card transaction values (MXN), 2012-20f 45
Table 36: Mexico: credit card transaction values ($), 2012-20f 45
Table 37: Mexico: credit cards in circulation by scheme (000s), 2012-16e 46
Table 38: Mexico: credit card transaction value by scheme (MXNbn), 2012-16e 46
Table 39: Mexico: credit card transaction value by scheme ($bn), 2012-16e 46
Table 40: Mexico: charge cards in circulation (millions), 2012-20f 46
Table 41: Mexico: charge card transaction volumes, 2012-20f 47
Table 42: Mexico: charge card transaction values (MXN), 2012-20f 47
Table 43: Mexico: charge card transaction values ($), 2012-20f 47
Table 44: Mexico: charge cards in circulation by scheme (000s), 2012-16e 48
Table 45: Mexico: charge card transaction value by scheme (MXNbn), 2012-16e 48
Table 46: Mexico: charge card transaction value by scheme (MXNm), 2012-16e 48
Table 47: Mexico: prepaid cards in circulation (millions), 2012-20f 48
Table 48: Mexico: prepaid card transaction values (MXNbn), 2012-20f 48
Table 49: Mexico: prepaid card transaction values ($bn), 2012-20f 49
Table 50: Mexico: merchant acquiring transaction volumes (millions), 2011-19f 49
Table 51: Mexico: merchant acquiring transaction values (MXNbn), 2011-19f 49
Table 52: Mexico: merchant acquiring transaction values ($bn), 2011-19f 49
Table 53: Mexico: acquirers transaction volumes (millions), 2011-14 49
Table 54: Mexico: acquirers transaction values (MXNbn), 2010-14 50
Table 55: Mexico: acquirers transaction values ($bn), 2010-14 50
Table 56: Mexico: retail outlets and card-accepting merchants (000s), 2011-19f 50
Table 57: Mexico: debit card average interchange fees (%), 2010-14 50
Table 58: Mexico: debit card merchant service charge and interchange fee (%),2011-19f 51
Table 59: Mexico: pay-later card average interchange fees (%), 2010-14 51
Table 60: Mexico: pay-later card merchant service charge and interchange fee (%), 2011-19f 51
Table 61: Key definitions 52

List of Figures
Figure 1: Mexico: payment instrument shares by transaction value (%), 2012 vs 2016 11
Figure 2: Mexico: payment instrument shares by transaction volume (%), 2012 vs 2016 12
Figure 3: Mexico: e-commerce value 13
Figure 4: Mexico: population and economic indicators 19
Figure 5: Mexico: ATMs, POS terminals, and household consumption 20
Figure 6: Mexico: payment card transaction value and cards in circulation, 2012-20f 22
Figure 7: Mexico: debit card penetration and turnover per card 24
Figure 8: Mexico: debit card scheme and issuer transaction value shares, 2016 26
Figure 9: Mexico: pay-later card penetration and turnover per card 28
Figure 10: Mexico: pay-later card scheme and issuer transaction value shares, 2016 30
Figure 11: Mexico: prepaid cards in circulation and transaction value, 2012-20f 33
Figure 12: Mexico: merchant acquiring transaction volume and value, 2011-19f 35
Figure 13: Mexico: acquirers market share in terms of transaction volume and value (%), 2014 36
Figure 14: Mexico: average merchant service charge and interchange fee (%), 2011-19f 36

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title *
  • Company *
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *