The Cards and Payments Industry in Chile: Emerging trends and opportunities to 2020
Changing lifestyles and rises in the economically active population, disposable income, and the popularity of online shopping supported the growth of payment cards during the review period - a trend that is anticipated to continue over the forecast period (2016-20f).
Cash remains the preferred method of consumer payments in Chile, accounting for 76% of total payment transaction volume in 2016. Cash is mainly used for day-to-day and low-value transactions. However, Chile’s cards and payments industry underwent a transformation during the review period (2012-16), supported by government initiatives such as a financial inclusion program and infrastructure modernization. As use of cash and cheques declined, debit and credit cards have benefited. Government efforts to provide basic banking and financial services to the unbanked helped a large proportion of the population become banked, which benefitted the industry. The percentage of individuals aged over 15 with an account grew from 49.8% in 2012 to 71.4% in 2016.
Demand for credit cards increased during the review period. This was mainly driven by increased short-term credit demand following the financial crisis, especially among the Chilean lower- and middle-class population. Banks reciprocated positively by lowering interest rates for credit card consumer loans. According to central bank statistics, the average interest rate on credit card consumer loans decreased from 34.3% in January 2013 to 23.3% in December 2016, encouraging consumers to take out credit cards.
The report The Cards and Payments Industry in Chile: Emerging trends and opportunities to 2020 provides detailed analysis of market trends in the Chilean cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including credit transfers, payment cards, cash, direct debit, and cheques during the review-period (2012-16e).
In particular, this report provides the following -
Current and forecast values for each market in the Chilean cards and payments industry, including debit and credit cards.
Detailed insights into payment instruments including credit transfers, cash, cheques, direct debit, and payment cards. It also, includes an overview of the country's key alternative payment instruments.
E-commerce market analysis.
Analysis of various market drivers and regulations governing the Chilean cards and payments industry.
Detailed analysis of strategies adopted by banks and other institutions to market debit and credit cards.
Companies mentioned in this report: Banco del Estado de Chile, Banco Santander Chile, Bci, Banco de Chile, Banco Falabella , Banco Ripley, Banco Itaú Chile, Redcompra, Scotiabank, CuentaRUT, Magna, Visa, Mastercard, American Express.
To capitalize on the growing adoption of alternative payment solutions in the country, BBVA Chile launched its mobile wallet, BBVA Wallet, in April 2015. The wallet allows users to make contactless mobile payments without the need to authenticate transactions with a PIN. The wallet is directly linked to the customer’s bank account. Meanwhile Visa launched Visa Checkout in Chile in February 2015. It allows users to store multiple card details and billing addresses for faster checkout. Once details are saved they can be used for future payments.
To promote electronic payments in Chile, Mastercard has launched various payment solutions. It launched the Qkr! mobile app for Android and iOS mobile phone users in June 2015, enabling consumers to make faster and secure payments using a mobile phone or tablet. The app is available free of charge, and only requires users to register their credit card details. Chile was the first Latin American country to offer this solution, which is now mostly targeted at sports fans. It allows them to order food from their seat while watching matches at the National, Estadio Monumental David Arellano, and La Portada stadiums. Mastercard also offers its Masterpass payment solution in Chile for online shoppers. Masterpass allows users to pay from a list of pre-stored card and shipping information.
To serve the unbanked population and promote prepaid cards in the country, the central bank introduced a new regulation on prepaid cards in 2015. Non-banking organizations under the purview of the Superintendence of Banks and Financial Institutions (SBIF) are now allowed to issue prepaid cards. A customer’s identity must be verified before offering a prepaid card in order to curb money laundering and terrorist financing activities.
Reasons to buy
Make strategic business decisions, using top-level historic and forecast market data, related to the Chilean cards and payments industry and each market within it.
Understand the key market trends and growth opportunities in the Chilean cards and payments industry.
Assess the competitive dynamics in the Chilean cards and payments industry.
Gain insights into marketing strategies used for various card types in Chile.
Gain insights into key regulations governing the Chilean cards and payments industry.