The Cards and Payments Industry in Brazil: Emerging Trends and Opportunities to 2019

The Brazilian cards and payments industry has increased in terms of available products and services. This follows heightened competition between leading domestic and foreign banks. Consequently, customers benefit as banks offer improved products and services in a bid for customer acquisition and retention.

Commercial banks target customers in higher income groups by offering cards with a high cash-withdrawal and POS transaction limits, along with additional benefits. Banks such as Banco Bradesco, CEF and Banco do Brasil offer cards specially designed for high-income groups.

Co-branded credit cards were one of the biggest trends in the Brazilian credit card market during the review period. They also offer consumers attractive deals in a variety of product niches, as well as good reason to acquire multiple cards. In 2010, for example, MasterCard partnered with the telecoms service provider Telefonica, and introduced a co-branded card in Brazil.

All major banks offer a range of travel cards with value-added services to capitalize on the growing travel and tourism industry. These travel cards typically come with a range of benefits, such as personal credit limits, reward miles and insurance.

Banks also offer cards that target vehicle owners in association with prominent gas and automobile companies. These cards offer discounts on fuel and gasoline purchases, as well as discounts on maintenance services. Cardholders are also offered discounts on purchases of new vehicles, and can redeem reward points for further discounts on maintenance charges, spare parts, accessories and merchandise.

Scope

•A comprehensive analysis of Brazil's cards and payments industry.

•Current values for the industry for 2014, with forecast figures up to 2019.

•Analysis of the key economic, infrastructural and business drivers affecting the industry.

•Analysis of the current regulatory framework in the industry.

•A review of the marketing strategies adopted by banks and other institutions in the industry.

•Profiles of the major banks in the industry.

•Detailed insights into payment instruments, including: credit transfers, check payments, direct debits, payment cards and cash transactions.

•An overview of Brazil’s key alternative payment instruments.

•A comprehensive analysis of consumer attitudes and buying preferences for cards.

•Detailed data on the number of cards in circulation, along with transaction values and volumes during the review period, in addition to those anticipated over the forecast period.

•Detail of regulatory policies and recent changes in regulatory structure affecting participants in the Brazilian cards and payments market.

Key Highlights

Which two key initiatives in the Brazilian cards and payments market are anticipated to fuel demand for contactless cards over the forecast period?

Which segment is set to provide a major opportunity for card issuers, primarily due to the extension of an earlier policy implemented by the Brazilian government?

By how much did mobile penetration in Brazil increase during 2010 to 2014? What is the anticipated increase up to 2019?

Why have mobile payments been relatively slow to take off in the Brazilian cards and payment market? What factors are forecast to lead to significant growth in the future?

Reasons to buy

•Utilize GlobalData’s top-level historic and forecast market data, to inform your strategic decisions in each category of Brazil's cards and payments industry.

•Investigate the key market trends and growth opportunities in Brazil's cards and payments industry, and align your operations to those which offer you the best chance to develop your market share.

•Assess the competitive dynamics in Brazil's cards and payments industry and position your new product launches from an awareness of the current forces in the market.

•Gain insights into marketing strategies used for various card types in Brazil, and emulate those which provide the most attractive opportunity to maximize your revenues.

•Analyze the key regulations governing the industry to ensure your compliance and reduce your potential exposure to financial constraints.

Companies mentioned

Banco Bradesco

Itaú Unibanco

Caixa Econômica Federal

Banco do Brasil

Banco Santander Brasil

Visa

MasterCard

American Express

Diners Club

Hipercard

Table of Contents

1 Definitions and Methodology

1.1 Definitions

1.2 Methodology

2 Key Facts and Events

3 Executive Summary

4 Payment Instruments

4.1 Current Payment Environment

4.2 Alternative Payment Instruments

4.2.1 Boleto Bancario

4.2.2 Oi Paggo

4.2.3 MercadoPago

4.2.4 Ukash

4.2.5 PayPal

4.2.6 MasterPass

5 Regulations in the Cards and Payments Industry

5.1 Regulatory Framework

5.2 Anti-Money Laundering (AML)

5.3 Foreign Direct Investment (FDI) Regulations

6 Analysis of Cards and Payments Industry Drivers

6.1 Demographic Drivers

6.2 Economic Drivers

6.3 Infrastructure Drivers

6.4 Business Drivers

7 Market Segmentation and New Product Launches

7.1 Market Segmentation and Targeting

7.1.1 Consumer cards

7.1.2 Commercial cards

7.2 New Product Launches

8 Payment Cards

8.1 Payment Cards Analysis

8.1.1 Volume and value of payment card transactions by type

8.1.2 Personal vs commercial cards

9 Debit Cards

9.1 Debit Card Market Analysis

9.1.1 Debit card transaction volumes and values by channel

9.1.2 Debit card scheme shares in terms of number of cards in circulation and transaction value

9.1.3 Debit cards issuers’ market shares

9.1.4 Debit card comparison

10 Credit Cards

10.1 Credit Card Market Analysis

10.1.1 Credit card transaction volumes and values by channel

10.1.2 Credit card scheme shares in terms of number of cards in circulation and transaction value

10.1.3 Credit cards issuers’ market shares

10.1.4 Credit card comparison

11 Charge Cards

11.1 Charge Card Market Analysis

11.1.1 Charge card transaction volumes and values by channel

11.1.2 Charge card scheme shares in terms of number of cards in circulation and transaction value

11.1.3 Charge card comparison

12 Commercial Cards

12.1 Commercial Card Market Analysis

12.1.1 Commercial card comparison

13 Card Fraud Statistics

13.1 Card Fraud Analysis

14 Card Issuers

14.1 Banco Bradesco

14.2 Itaú UniBanco

14.3 Caixa Econômica Federal

14.4 Banco do Brasil

14.5 Banco Santander Brasil

15 Prepaid Cards

15.1 Prepaid Card Market Analysis

15.1.1 Prepaid card comparison

16 Merchant Acquiring

16.1 Merchant Acquiring Market Analysis

17 Appendix

17.1 Tables

17.2 Contact GlobalData

17.3 About GlobalData

17.4 GlobalData’s Services

17.5 Disclaimer

List of Tables

Table 1: Key Definitions

Table 2: Annual Average Exchange Rate

Table 3: Brazil – Key Facts, 2014

Table 4: Regional Benchmarking of Brazilian Payment Cards, 2014

Table 5: Brazil – Mode of Entry of Foreign Banks

Table 6: Cards for High-Income Consumers, 2015

Table 7: Cards for Travelers, 2015

Table 8: Cards for Vehicle Owners, 2015

Table 9: Cards for Shoppers, 2015

Table 10: Cards for Students and Youth Population, 2015

Table 11: Commercial Cards Comparison and Key Features, 2015

Table 12: Brazil – New Product Launches

Table 13: Brazil – Pay Now, Average Interchange Fees: Intra-Network Transactions (%), 2010–2014

Table 14: Brazil – Pay Now, Average Merchant Service Charge: Domestic Transactions (%), 2010–2019

Table 15: Brazil – Debit Card Comparisons and Key Features, 2014

Table 16: Brazil – Pay Later, Average Interchange Fees: Intra-Network Transactions (%), 2010–2014

Table 17: Brazil – Pay Later, Average Merchant Service Charge: Domestic Transactions (%), 2010–2019

Table 18: Brazil – Gold Credit Card Comparison and Key Features, 2015

Table 19: Brazil – Premium Credit Card Comparison and Key Features, 2015

Table 20: Brazil – Charge Card Comparison and Key Features, 2015

Table 21: Brazil – Commercial Card Comparison and Key Features, 2015

Table 22: Brazil – Prepaid Card Comparison and Key Features, 2015

Table 23: Brazil – Payment Instrument Transaction Values (BRL Million), 2010–2014

Table 24: Brazil – Payment Instrument Transaction Values (US$ Million), 2010–2014

Table 25: Brazil – Payment Instrument Transaction Volumes (Million), 2010–2014

Table 26: Brazil – Number of Payment Cards in Circulation by Type (Million), 2010–2019

Table 27: Brazil – Volume of Payment Card Transactions by Type (Million), 2010–2019

Table 28: Brazil – Value of Payment Card Transactions by Type (BRL Billion), 2010–2019

Table 29: Brazil – Value of Payment Card Transactions by Type (US$ Billion), 2010–2019

Table 30: Brazil – Personal and Commercial Card Transaction Volumes (Million), 2010–2019

Table 31: Brazil – Personal and Commercial Card Transaction Values (BRL Billion), 2010–2019

Table 32: Brazil – Personal and Commercial Card Transaction Values (US$ Billion), 2010–2019

Table 33: Brazil – Number of Debit Cards in Circulation (Million), 2010–2019

Table 34: Brazil – Debit Card Transaction Volumes and Frequency by Channel, 2010–2019

Table 35: Brazil – Debit Card Total and Average Transaction Values by Channel, 2010–2019

Table 36: Brazil – Debit Card Total and Average Transaction Values by Channel, 2010–2019

Table 37: Brazil – Number of Debit Cards in Circulation by Scheme (Million), 2010–2014

Table 38: Brazil – Debit Card Transaction Values by Scheme (BRL Billion), 2010–2014

Table 39: Brazil – Debit Card Transaction Values by Scheme (US$ Billion), 2010–2014

Table 40: Brazil – Debit Card Transaction Values by Issuer (BRL Billion), 2010–2014

Table 41: Brazil – Debit Card Transaction Values by Issuer (US$ Billion), 2010–2014

Table 42: Brazil – Number of Credit Cards in Circulation (Million), 2010–2019

Table 43: Brazil – Credit Card Transaction Volumes and Frequency by Channel, 2010–2019

Table 44: Brazil – Credit Card Total and Average Transaction Values by Channel, 2010–2019

Table 45: Brazil – Credit Card Total and Average Transaction Values by Channel, 2010–2019

Table 46: Brazil – Number of Credit Cards in Circulation by Scheme (Million), 2010–2014

Table 47: Brazil – Credit Card Transaction Values by Scheme (BRL Billion), 2010–2014

Table 48: Brazil – Credit Card Transaction Values by Scheme (US$ Billion), 2010–2014

Table 49: Brazil – Credit Card Transaction Values by Issuer (BRL Billion), 2010–2014

Table 50: Brazil – Credit Card Transaction Values by Issuer (US$ Billion), 2010–2014

Table 51: Brazil – Credit Card Balances Outstanding by Issuer (BRL Billion), 2010–2014

Table 52: Brazil – Credit Card Balances Outstanding by Issuer (US$ Billion), 2010–2014

Table 53: Brazil – Number of Charge Cards in Circulation (Thousand), 2010–2019

Table 54: Brazil – Charge Card Transaction Volumes and Frequency by Channel, 2010–2019

Table 55: Brazil – Charge Card Total and Average Transaction Values by Channel, 2010–2019

Table 56: Brazil – Charge Card Total and Average Transaction Values by Channel, 2010–2019

Table 57: Brazil – Number of Charge Cards in Circulation by Scheme (Thousand), 2010–2014

Table 58: Brazil – Charge Card Transaction Values by Scheme (BRL Million), 2010–2014

Table 59: Brazil – Charge Card Transaction Values by Scheme (US$ Million), 2010–2014

Table 60: Brazil – Number of Commercial Cards in Circulation (Thousand), 2010–2019

Table 61: Brazil – Commercial Card Transaction Values (BRL Billion), 2010–2019

Table 62: Brazil – Commercial Card Transaction Values (US$ Billion), 2010–2019

Table 63: Brazil – Card Fraud (BRL Million), 2010–2014

Table 64: Brazil – Card Fraud (US$ Million), 2010–2014

Table 65: Brazil – Number of Prepaid Cards in Circulation (Million), 2010–2019

Table 66: Brazil – Prepaid Card Transaction Values (BRL Million), 2010–2019

Table 67: Brazil – Prepaid Card Transaction Values (US$ Million), 2010–2019

Table 68: Brazil – Merchant Acquiring Transaction Volume by Card Type (Billion), 2010–2019

Table 69: Brazil – Merchant Acquiring Total Transaction Value (BRL Billion), 2010–2019

Table 70: Brazil – Merchant Acquiring Total Transaction Value (US$ Billion), 2010–2019

Table 71: Brazil – Acquirers’ Transaction Volume (Million), 2010–2014

Table 72: Brazil – Acquirers’ Transaction Value (BRL Billion), 2010–2014

Table 73: Brazil – Acquirers’ Transaction Value (US$ Billion), 2010–2014

Table 74: Brazil – Retail Outlets and Total Merchant Accounts (Million), 2010–2019

List of Figures

Figure 1: Brazil – Payment Instrument Shares by Transaction Value (%), 2010 and 2014

Figure 2: Brazil – Payment Instrument Shares by Transaction Volume (%), 2010 and 2014

Figure 3: Brazil – Total Population and Structure, 2014

Figure 4: Brazil – Internet and Mobile Penetration (Users per 100 Inhabitants), 2010–2019

Figure 5: Brazil – Economic Indicators, 2010–2019

Figure 6: Brazil – Number of ATMs, POS Terminals and Commercial Bank Branches, 2010–2019

Figure 7: Brazil – Household Final Consumption Expenditure and Retail Sales, 2010–2014

Figure 8: Brazil – E-Commerce Value (US$ Billion), 2010–2019

Figure 9: Brazil – Outbound and Inbound Trips Volume and Spending, 2010–2019

Figure 10: Brazil – Cards and Payments Industry Segmentation by Card Type, 2015

Figure 11: Brazil – Growth in Payment Cards Transaction Value and Number of Cards in Circulation by Type, 2010–2019

Figure 12: Brazil – Volume and Value of Payment Card Transactions by Type (%), 2010–2019

Figure 13: Brazil – Personal and Commercial Cards, Transaction Volume and Value (%), 2010–2019

Figure 14: Brazil – Growth in Debit Card Transaction Values and Number of Cards in Circulation, 2010–2019

Figure 15: Brazil – Debit Card Transaction Volumes and Values by Channel, 2010–2019

Figure 16: Brazil – Debit Card Scheme Shares in Terms of Number of Cards in Circulation and Transaction Value (%), 2014

Figure 17: Brazil – Debit Cards Issuers’ Market Shares in Terms of Transaction Value (%), 2014

Figure 18: Brazil – Growth in Credit Card Transaction Values and Number of Credit Cards in Circulation, 2010–2019

Figure 19: Brazil – Credit Card Transaction Volumes and Values by Channel, 2010–2019

Figure 20: Brazil – Credit Card Scheme Shares in Terms of Number of Cards in Circulation and Transaction Value (%), 2014

Figure 21: Brazil – Credit Cards Issuers’ Market Shares of Transaction Value (%), 2014

Figure 22: Brazil – Credit Cards Issuers’ Market Shares of Outstanding Balance (%), 2014

Figure 23: Brazil – Growth in Charge Card Transaction Values and Number of Charge Cards in Circulation, 2010–2019

Figure 24: Brazil – Charge Card Transaction Volumes and Values by Channel, 2010–2019

Figure 25: Brazil – Charge Card Scheme Shares in Terms of Number of Cards in Circulation and Transaction Value (%), 2014

Figure 26: Brazil – Number of Commercial Cards in Circulation and Transaction Value, 2010–2019

Figure 27: Brazil – Shares of Various Types of Card Fraud in Terms of Transaction Value (%), 2010 and 2014

Figure 28: Brazil – Number of Prepaid Cards in Circulation and Transaction Value, 2010–2019

Figure 29: Brazil – Merchant Acquiring Transaction Volume and Value, 2010–2019

Figure 30: Brazil – Merchant Acquirers’ Market Share in Terms of Transaction Volume and Value %, 2014

Figure 31: Brazil – Number of Retail Outlets and Total Merchant Accounts (Million), 2010–2019

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