Market Opportunities and Emerging Trends in the Prepaid Card Market in the Latin America
The Latin American (Brazil, Mexico, Chile and Peru) prepaid card industry, including both open and closed-loop prepaid cards, registered strong growth during the review period, posting a combined CAGR of 30.04%. It is estimated that 75 million of the Brazilian population are unbanked, or do not have access to banking services. Prepaid cards provide an alternative payment platform to unbanked consumers and help increase levels of financial inclusion. The Mexican prepaid cards market has slowly gained in popularity as organized retailers and vendors began to accept prepaid cards without charging a processing fee. Furthermore, vehicle rental vendors are also using prepaid cards for their service transactions. During the review period, 47% of Chilean retailers enrolled in a gift card program, making the country the second-largest Latin American market after Mexico for prepaid cards. Chilean gift card brands include Falabella, Easy and Paris. More than 50% of the Peruvian population is still unbanked. In order to provide wider levels of financial inclusion, banks in Peru are expected to issue prepaid or debit cards rather than credit cards. The ease of obtaining prepaid cards will drive the market over the forecast period.
Key highlights of this title
- The use of cards as a payment system is popular in Brazil. According to Associação Brasileira das Empresas de Cartões de Crédito e Serviços (ABECS), the total number of credit cards in Brazil increased by 13% to reach 173.3 million in 2011, while the number of debit cards increased by 7% to reach 266.3 million in 2011. Additionally 247.4 million private-label cards are in circulation. As Brazilian consumers are already familiar with the concept of payment cards, it is easier for companies to promote prepaid cards.
- Retailers and supermarkets have launched their own prepaid cards in partnership with commercial banks or prepaid card solution companies. Mexican retailers offering gift cards include iTunes, Cinemex, Mixup, Gandhi, Lo Mejor de México, Smartbox, Starbucks, California Pizza Kitchen, Chili’s, Experimenta, Bueno, todito Card, Saludo, Hablando Derecho,10 en Tareas and Xbox Live.
- There are opportunities in the Chilean prepaid card market to introduce open-loop cards which have distinctive benefits for both retailers and customers alike. The open loop cards expands the usability of the card and do not restricts the user to shop from the limited retailers.
- The online retailing market in Peru is projected to record a CAGR of 13.48% over the forecast period. While debit and credit cards can be used for online purchases, prepaid cards are expected to be used for online retail purchases due to the security options they provide.
- This report provides a comprehensive analysis of the prepaid card market in the Latin America
- It provides current value for the Latin American prepaid card market for the year 2011 and forecast figure for the year 2016
- It offers a detailed analysis of the key markets in the Latin American prepaid card market, along with market forecasts until 2016
- It details the different macroeconomic factors affecting the Latin American prepaid card market
- It covers an exhaustive summary on the key trends and drivers affecting the prepaid card market
- It outlines 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 Latin American prepaid card market
Reasons to Purchase
- Make strategic business decisions using top-level historic and forecast market data related to the Latin American prepaid card industry and each market within it
- Understand the key market trends and growth opportunities within the Latin American prepaid card market
- Assess the competitive dynamics in the Latin American prepaid card market
- Gain insights in to the marketing strategies used by the prepaid card selling vendors
- Gain insights into key regulations governing the Latin American prepaid card market
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