The Cards and Payments Industry in Peru: Emerging Trends and Opportunities to 2020

  • ID: 3753422
  • Report
  • Region: Peru
  • 48 pages
  • GlobalData
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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.
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1.EXECUTIVE SUMMARY
1.1. Market overview
1.2. Key facts
1.3. Top five industry events
2.PAYMENT INSTRUMENTS
2.1. Current payment environment
3.E-COMMERCE AND ALTERNATIVE PAYMENTS
3.1. E-commerce market analysis
3.2. Alternative payment solutions
3.2.1. Modelo Peru - Bim
3.2.2. Tu Dinero Movil
3.2.3. PayPal
3.2.4. PagoEfectivo
3.2.5. Visa Checkout
3.2.6. Paysafecard
3.2.7. SafetyPay
4.REGULATIONS IN THE CARDS AND PAYMENTS INDUSTRY
4.1. Regulatory framework
4.1.1. Consumerprotection
4.1.2. Retail agents
4.2. Anti-money laundering
4.3. Foreign direct investment regulations
4.4. ANALYSIS OF CARDS AND PAYMENTS INDUSTRY DRIVERS
5.PAYMENT CARDS
6.DEBIT CARDS
6.1. Debit card market analysis
6.2. Competition in the debit card market
6.3. Debit card comparison
7.PAY-LATER CARDS
8.1. Pay-later card market analysis
8.2. Competition in the pay-later card market
8.3. Pay-later card comparison
8.PREPAID CARDS
9.APPENDIX
10.1. Abbreviations and acronyms
10.2. Supplementary data
10.3. Definitions
10.4. Methodology
10.5. Bibliography
10.6. Further reading
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