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Payments Landscape in Peru: Opportunities and Risks to 2021

Payments Landscape in Peru: Opportunities and Risks to 2021

Summary

The use of cash for retail purchases remains prevalent among the majority of Peruvians, especially the rural population. This is primarily due to a combination of limited public awareness of other instruments and limited access to banking infrastructure. However, the Central Reserve Bank of Peru has taken a number of steps to improve this situation. The National Financial Inclusion Strategy adopted in July 2015 aims to provide access to formal financial accounts to at least 75% of the population by 2021. The strategy promotes access to savings, insurance and financing, consumer protection, financial education, and electronic payments.

In line with the government’s financial inclusion program, the fully interoperable payment platform BiM mobile money was launched in February 2016. A collaboration between the government, financial institutions, and telcos, the service enables Peruvian residents with a mobile phone to open a bank account, transfer funds, and make utility payments.

An agent banking model is also being used to provide financial access in remote areas. It was first introduced in 2005 following a change in regulation that allowed banks to use third-party agents to provide financial services to consumers. Rising bank penetration is expected to drive demand for products such as bank accounts and debit cards.

To drive online purchases, e-commerce companies are launching online marketplaces. In April 2018 online shopping mall Lumingo was launched in Peru, offering a wide range of products and services, while in July 2016 e-mall Juntoz.com was launched. To capitalize on e-commerce growth, payment solutions providers are launching their solutions in the country. Visa offers Visa Checkout, enabling shoppers to make convenient online payments via their username and password without the need to enter card details. Similarly, PayPal offers PayPal OneTouch for faster checkout.

Changing lifestyles, growth in the economically active population, rising disposable income, and the popularity of online shopping supported payment card growth during the review period (2013-17). The ongoing transition to EMV cards and the advent of contactless technology is likely to support the growth of the Peruvian payment card market.

Payments Landscape in Peru: Opportunities and Risks to 2021, report provides detailed analysis of market trends in the Peruvian cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including credit transfers, direct debit, payment cards, and cheques.

This report specifically provides top-level market analysis, information and insights into the Peruvian cards and payments industry, including -

  • 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, cheques, 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 Peruvian cards and payments industry.
  • Detailed analysis of strategies adopted by banks and other institutions to market debit and credit cards.
Companies Mentioned: Banco de Credito del Peru, BBVA Continental, Scotiabank, Interbank, BancoFalabella, Banco Ripley, BancoCencosud, BancoFinanciero, Visa, Mastercard, American Expressand Diners Club

Scope
  • To offer faster and secure payments, Cámara de Compensación Electrónica (CEE) introduced an instant payment service from July 2016. Using the service, transfers of up to PEN30,000 ($9,202.28) in domestic currency and $10,000 in foreign currency can be made within a maximum of 30 seconds. As of December 2016 BCP, BBVA Continental, and Scotiabank together accounted for 98% of the total number of instant transfers. In 2017 an average of 5,000 immediate payment transactions were made daily.
  • In line with the government’s financial inclusion program, the fully interoperable payment platform BiM mobile money was launched in February 2016. A collaboration between the government, financial institutions, and telcos, the service enables Peruvian residents with a mobile phone to open a bank account, transfer funds, and make utility payments. It can be accessed via any basic mobile phone. According to Peruvian Digital Payments (PDP), 400,000 Peruvians had used this service as of April 2017, with the adoption rate growing by 20,000 users every month. In January 2015, Mastercard and mobile operator Movistar launched a mobile money service called Tu Dinero Móvil. The service is available to Movistar’s more than 16 million customers, allowing them to conduct banking transactions such as fund transfers, purchases at Mastercard-affiliated establishments, and mobile recharges.
  • To drive online purchases, e-commerce companies are launching online marketplaces. In April 2018 online shopping mall Lumingo was launched in Peru, offering a wide range of products and services, while in July 2016 e-mall Juntoz.com was launched. These e-malls act as a one-stop shop for hundreds of retailers and brands. This allows Peruvians to buy products such as groceries, furniture, clothing, fashion accessories, medicines, and electronic devices from various brands on a single website. To capitalize on e-commerce growth, payment solutions providers are launching their solutions in the country. Visa offers Visa Checkout, enabling shoppers to make convenient online payments via their username and password without the need to enter card details. Similarly, PayPal offers PayPal OneTouch for faster checkout.
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.


Market Overview
Executive Summary
Card-based Payments
E-commerce Payments
Alternative Payments
Payments Infrastructure & Regulation
Appendix

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