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Credit Cards in Latin America and the Caribbean: Financial Inclusion with Risk and Opportunity

  • ID: 4826105
  • Report
  • Region: Caribbean, Central America, Latin America, South America
  • 31 Pages
  • Mercator Advisory Group
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New Research Report Reviews the Credit Card Market and Competition from Nonbank Fintechs in Latin America and the Caribbean Region

FEATURED COMPANIES

  • ACI Worldwide
  • Banco de Bogata
  • Bradesco
  • Diners Club
  • Itau
  • Santander
  • MORE

Latin America is a hotbed of payment fintechs with successful start-ups like Mercado Pago, PagSeguro, and Rappi offering free digital accounts, but will these nonbanks outpace the banking relationship? The analysis presented in the latest research report, Credit Cards in Latin America and the Caribbean: Financial Inclusion with Risk and Opportunity, recognizes opportunity but warns that infrastructure can be a limiting factor in this 20-country market.

Readers will understand the challenges that bank card issuers face and how card network revenue has lagged in the market. The report’s author explains how banks and vendors can navigate the changing market.

“Most adults in Latin America have a Mercado Pago or PagSeguro free digital account,” comments the author of the research report. “That does not mean everyone has a bank account, but new payment options make it easy to transact outside of the banking realm. Yet strong domestic and global credit card issuers operate in the market.” He continues: “There is plenty of room for growth, but risk management must contend with high default rates, unacceptable fraud levels, and a credit model that is not designed to let households comfortably revolve consumer credit card debt. Interest rates are sky high to offset operational and fraud risk.”

Highlights of the research report include:

  • A review of network revenue, with a focus on Latin America and the Caribbean (LAC) region
  • Forecasted market projections through 2023
  • Credit card fraud rates in LAC markets
  • A deep dive into payment card markets in Brazil, Mexico, Argentina, Colombia, Chile, and Peru
  • E-commerce estimates through 2023
  • Perspectives on top payment fintechs in LAC region
  • Recommended strategies for credit card issuing banks
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FEATURED COMPANIES

  • ACI Worldwide
  • Banco de Bogata
  • Bradesco
  • Diners Club
  • Itau
  • Santander
  • MORE

Executive Summary

Underbanked but Trying

  • Latin America and the Caribbean: A Region of Developing Economies
  • Branded Network Transaction Volume in LAC Region Fell Short in 2018
  • E-Commerce in LAC will More than Double Between 2015 and 2023

Six Top Markets for Payments in LAC

  • Brazil: The Market Leader with Strong Potential to Grow
  • Mexico: Opportunity to Redefine the Payment System
  • Colombia: Riding the Rails of Innovation
  • Argentina: Inflation, Debt, and Politics
  • Chile: Steady Economy with Regulatory Progress
  • Peru: Small but Progressive

Headwinds for Credit Card Growth: Fraud, Infrastructure, and Politics

  • Fraud Rates Hold Back the E-Commerce Market in LAC
  • Drilling Down into E-Commerce Fraud Risk
  • Mobile Platforms Allow the Market to Leap Ahead Despite Infrastructure Issues
  • Politics Play a Role in Financial Inclusion

Payment Innovation: Friends, Enemies, or Frenemies

  • Mercado Libre: 267.4 Million Active, Nonbank Users
  • PagSeguro: 32 Entry Points, a Closed Loop, and Controlled Cash-Out
  • Rappi: From Delivery Service to Fintech

Strategies for Networks, Global Issuers, and Vendors

  • Fintechs Threaten the Credit Card Market in LAC, but Banks Are Not Ceding It
  • Networks and Issuers Must Do More Than Defend the Market
  • Vendor Opportunities in Customer Management, Fraud, and Risk

Conclusions

References

  • Related Research
  • Endnotes
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  • ACI Worldwide
  • Advent International
  • Alibaba
  • Alipay
  • Amazon
  • Banco CBSS
  • Banco Credito
  • Banco de Bogata
  • Banco de Chile
  • Banco de la Nacion Argentina
  • Banco de Mexico
  • Banco do Brasil
  • Bancolombia
  • BBVA
  • Boleto Bancario
  • Bradesco
  • Caixa
  • Cielo
  • Citi
  • Citibanamex
  • CyberSource
  • Davivienda
  • Diners Club
  • Discover
  • Equifax
  • Experian
  • FICO
  • Fitch
  • HSBC
  • Itau
  • Mastercard
  • Mercado Libre
  • Mercado Pago,Nubank
  • OXXO
  • PagSeguro
  • Rappi
  • Santander
  • Scotiabank
  • SoftBank
  • Tencent
  • TransUnion
  • Visa
  • VisaNet
  • Vision Fund
  • Walmart
Note: Product cover images may vary from those shown
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