Brazil, Russia, India, and China: Payment Developments in the BRIC Countries

  • ID: 4425792
  • Report
  • Region: BRIC, Brazil, China, India, Russia
  • 22 Pages
  • Mercator Advisory Group
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BRIC Nations Moving Toward Domestic Payments Model not Just Integrating Universal Branded Credit Cards

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When the acronym "BRIC" was coined in 2001, the BRIC nations (Brazil, Russia, India, and China) were the darlings of world economists, who projected that the four developing economies would mature during the 21st century and surpass the economic output of many developed markets. Growth has been uneven, however, and China now dominates this economic grouping in terms of economic growth, income per capita, and payments implementation. China’s point-of-sale terminal installations and cards outstanding are now more than double U.S. deployment. India, though similar in size, lags China. Inflation and shortfalls in growth of gross domestic product have had a particularly strong impact on Brazil and Russia. India is well intentioned but the process is moving slowly.

A new research report, Brazil, Russia, India and China: Payment Developments in the BRIC Countries, discusses how the BRIC nations, while similar in their long-term potential, face unique challenges based on economic, political, and social issues. The report also identifies how each country, in its own ways, is moving toward a more country-driven payments model rather than just integrating the universal branded payments scheme.

"In about 15 years, China UnionPay has built out a payments function that dwarfs the U.S. market in terms of deployed credit and debit cards, plus terminal installations," commented Brian Riley, Director Credit Advisory Service and author of the report. "Another interesting facet of the BRIC markets is their use of domestic payment schemes, such as ELO in Brazil, Mir Card in Russia, RuPay in India, and UnionPay in China. These will not eliminate the need for international payment cards, but they will certainly divert transaction volume."

Highlights of the research report include:

  • Key economic indicators in the BRIC markets
  • Projected credit and debit card volumes
  • The implications of indigenous payment networks that run outside or in tandem with global payment systems
  • Discussion of why China payments flourish and India payments languish
  • Long-range implications to the payments industry.
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1. Executive Summary

2. Introduction

3. Background

4. Comparative Data

  • Gross Domestic Product per Capita and Inflation

5. Foundational Data on the BRIC Markets

  • Population, Credit Scoring, Reporting, and Risk Management
  • Financial Inclusion, Cards in Force, Transactions

6. Payment Cards Grow in All Markets

  • Brazil
  • Russia
  • India
  • China
  • Payment Acceptance Devices

7. Conclusions

8. Endnotes

List of Figures
Figure 1: Four Stages of Development: Noncash Consumer Payments as a Percentage of Total Payments, 2014
Figure 2: Job Growth in BRIC Countries Resulting from Electronification of Payments, 2011-2015
Figure 3: Gross Domestic Product per Capita, 2011-2017E
Figure 4: Consumer Price Index Inflation, 2011-2017E
Figure 5: BRIC Country Population (in Millions), 2016
Figure 6: Percentage of Adult Population with a Banking Account or Mobile Network Financial Relationship, 2015
Figure 7: Brazil: Credit and Debit Cards, 2011-2017E
Figure 8: Russia: Credit and Debit Cards, 2011-2017E
Figure 9: India: Credit and Debit Cards, 2011-2017E
Figure 10: China: Credit and Debit Cards, 2011-2017E
Figure 11: Point-of-Sale Terminal Installations by Country, 2011-2017E

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  • Alfa-Bank
  • American Express
  • Banco Santander
  • Citi
  • Deutsche Bank
  • Discover
  • Elo
  • Equifax
  • Experian
  • FICO
  • First Data
  • Goldman Sachs
  • HDFC Bank
  • HSBC
  • ICICI Bank
  • Itaú Unibanco
  • Mastercard
  • Standard Chartered Bank
  • TSYS
  • TransUnion
  • VTB 24
  • Visa
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