Market Research Logo

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

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

Summary

Payment cards are gradually gaining prominence in Peru, primarily driven by the government’s financial inclusion program, and supported by commercial banks. In terms of transaction value and volume, the payment cards market recorded respective review-period (2012-16) CAGRs of 12.4% and 11.8%.

Card penetration in Peru is the lowest in comparison to its regional peers, at 69 cards per 100 inhabitants, behind Brazil (243.1), Chile (196.6), Argentina (178.4), Venezuela (151.5), Mexico (138.4), and Colombia (82.3) in 2016. The low adoption is due to the costs associated with cards, low consumer financial literacy, and limited accessibility and lack of adequate payment infrastructure - primarily in remote areas.

Financial inclusion has become a priority for the Peruvian government, resulting in the development of the National Financial Inclusion Strategy in July 2015. It aims to provide access to a formal financial account to at least 50% of the adult population by 2018, and 75% by 2021. The main objectives of this program are improving access to and use of quality financial services, promoting electronic payments, and development of banking infrastructure.

Agent banking model is also being used to provide financial access in remote areas. It was first introduced in Peru in 2005 with a change in regulations that allows banks to use third-party agents to provide financial services to consumers. Agents provide a low-cost channel for accessing financial services, as neither banks nor agents charge consumers for agent banking services. The number of agents providing banking services increased from 9,204 in 2010 to 38,000 in 2015. The rapid growth of agent networks in Peru has allowed banks to expand services into areas where the costs of setting up a traditional bank branch would be high. Rising bank penetration is expected to drive demand for products such as bank accounts and debit cards.

The report The Cards and Payments Industry in Peru: Emerging trends and opportunities to 2020 provides top-level market analysis, information and insights into the Peruvian cards and payments industry.

In depth, this report provides the following analysis -

  • Current and forecast values for each market in the Peruvian cards and payments industry, including debit and credit cards.
  • Detailed insights into payment instruments including credit transfers, direct debit, payment cards and cheques. 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 Peruvian 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 de Crédito del Peru, BBVA Continental, Interbank, Banco Falabella Peru, Banco Ripley, Scotiabank Peru, Banco Financiero, Banco Cencosud, Visa, Mastercard, American Express, Diners Club.

Scope
  • The Peruvian government developed the National Financial Inclusion Strategy in July 2015. It aims to provide access to financial accounts for at least 50% of the adult population by 2018, and 75% by 2021. The strategy promotes access to savings, insurance and financing, consumer protection, financial education programs, and electronic payments. To increase financial literacy in remote areas, in February 2017 Banco Agropecuario and the National Tambos Program announced the implementation of a financial literacy program to empower 2,250 small agricultural producers from 58 isolated communities in the highlands and jungle areas. Similarly, in April 2017 the Peruvian Banker’s Association held its first Family Financial Fair to promote financial education in the country. Rising financial inclusion is expected to drive demand for products such as bank accounts and debit cards.
  • In line with the government’s financial inclusion program, the national mobile payments system Modelo Peru launched Bim mobile money to provide the unbanked population with access to digital financial services. Modelo Peru is formed by the partnership of 40 Peruvian financial institutions, including private-sector and state-owned banks, credit unions, microfinance institutions, non-bank electronic money issuers, and telecommunication companies.
  • With high mobile penetration, companies in Peru are increasingly using mobile technology with a focus on financial inclusion. In collaboration with Mastercard, mobile operator Movistar introduced the country’s first electronic mobile money service called Tu Dinero Movil (Your Mobile Money) in January 2015. The service is now available to Movistar’s more than 16 million customers, allowing them to conduct a number of transactions such as money transfers, purchases at Mastercard-affiliated establishments, and paying for mobile recharges. Similar to Bim, it can be accessed on smartphones as well as basic mobile phones.
Reasons to buy
  • Make strategic business decisions, using top-level historic and forecast market data, related to the Peruvian cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in the Peruvian cards and payments industry.
  • Assess the competitive dynamics in the Peruvian cards and payments industry.
  • Gain insights into marketing strategies used for various card types in Peru.
  • Gain insights into key regulations governing the Peruvian cards and payments industry.


  • Executive Summary
    • Market overview
    • Key facts
      • Table Peru: key facts, 2016
      • Table Regional benchmarking of payment cards, 2016
    • Top five industry events
  • Payment Instruments
    • Current payment environment
      • Table Figure 1: Peru: payment instrument shares by transaction value (%), 2012 vs 2016
      • Table Figure 2: Peru: payment instrument shares by transaction volume (%), 2012 vs 2016
  • E-Commerce and Alternative Payments
    • E-commerce market analysis
      • Table Figure 3: Peru: e-commerce value ($m), 2012–20f
    • Alternative payment solutions
      • Modelo Peru – Bim
      • Tu Dinero Movil
      • PayPal
      • PagoEfectivo
      • Visa Checkout
      • Paysafecard
      • SafetyPay
  • Regulations in the Cards and Payments Industry
    • Regulatory framework
      • Consumer protection
      • Retail agents
    • Anti-money laundering
    • Foreign direct investment regulations
      • Table Peru: mode of entry of foreign banks
    • Analysis of Cards and Payments Industry Drivers
      • Table Figure 4: Peru: population and economic indicators
      • Table Figure 5: Peru: number of ATMs, POS terminals, and real household consumption
  • Payment Cards
    • Table Figure 6: Peru: payment cards transaction value and cards in circulation, 2012–20f
  • Debit Cards
    • Debit card market analysis
      • Table Figure 7: Peru: debit card penetration (%) and turnover per card ($)
    • Competition in the debit card market
      • Table Figure 8: Peru: debit card scheme and issuer transaction value shares (%), 2016
    • Debit card comparison
      • Table Peru: debit card comparison and key features, 2017
  • Pay-later Cards
    • Pay-later card market analysis
      • Table Figure 9: Peru: pay-later card penetration (%) and turnover per card ($)
    • Competition in the pay-later card market
      • Table Figure 10: Peru: pay-later card scheme and issuer transaction value shares (%), 2016
    • Pay-later card comparison
      • Table Peru: gold credit card comparison and key features, 2017
      • Table Peru: premium credit card comparison and key features, 2017
  • Prepaid Cards
    • Table Figure 11: Peru: prepaid cards in circulation (millions) and transaction value ($m), 2012–20f
  • Appendix
    • Abbreviations and acronyms
    • Supplementary data
      • Table Peru: payment instrument transaction values (PENbn), 2012–16e
      • Table Peru: payment instrument transaction values ($bn), 2012–16e
      • Table Peru: payment instrument transaction volumes (millions), 2012–16e
      • Table Peru: payment cards in circulation by type (millions), 2012–20f
      • Table Peru: volume of payment card transactions (millions), 2012–20f
      • Table Peru: value of payment card transactions (PENbn), 2012–20f
      • Table Peru: value of payment card transactions ($bn), 2012–20f
      • Table Peru: debit cards in circulation (millions), 2012–20f
      • Table Peru: debit card transaction volumes, 2012–20f
      • Table Peru: debit card transaction values (PEN), 2012–20f
      • Table Peru: debit card transaction values ($), 2012–20f
      • Table Peru: debit cards in circulation by scheme (millions), 2012–16
      • Table Peru: debit card transaction values by scheme (PENbn), 2012–16
      • Table Peru: debit card transaction values by scheme ($bn), 2012–16
      • Table Peru: debit card transaction values by issuer (PENbn), 2012–16
      • Table Peru: debit card transaction values by issuer ($bn), 2012–16
      • Table Peru: pay-later cards in circulation (millions), 2012–20f
      • Table Peru: pay-later card transaction volumes, 2012–20f
      • Table Peru: pay-later card transaction values (PEN), 2012–20f
      • Table Peru: pay-later card transaction values ($), 2012–20f
      • Table Peru: pay-later cards in circulation by scheme (000s), 2012–16
      • Table Peru: pay-later card transaction values by scheme (PENbn), 2012–16
      • Table Peru: pay-later card transaction values by scheme ($bn), 2012–16
      • Table Peru: pay-later card transaction values by issuer (PENbn), 2012–16
      • Table Peru: pay-later card transaction values by issuer ($bn), 2012–16
      • Table Peru: prepaid cards in circulation (millions), 2012–20f
      • Table Peru: prepaid card transaction values (PENbn), 2012–20f
      • Table Peru: prepaid card transaction values ($m), 2012–20f
    • Definitions
      • Table Key definitions
    • Methodology
    • Bibliography
    • Further reading

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report