The card payments market in Chile grew at a healthy pace during the period 2012 – 2014, both in terms of volume and value. The growth of the Chile card payments market will continue in future, driven by the growth of retail sector, increasing market for online and mobile commerce, and new product offerings. Also branchless banking model implemented by banks in Chile is expected to further boost the growth of card-based payments.
In Chile, debit cards dominate the card payments market in terms of number of cards in circulation. The increase in number of debit cards during the period can be attributed to increasing volume of basic bank accounts ‘cuentas a la vista’, as debit cards are offered along with these accounts. Debit card also dominated the Chilean card payments in terms of number of transactions and value of transactions. Debit cards are used by consumers to shop at retail outlets, withdraw cash from ATMs and make online payments. The value of debit card transactions at ATMs remained significantly higher than the value of transactions at POS terminals in 2014.
Debit card penetration per 100 inhabitants increased from 86 in 2012 to 104 in 2014, and it is further expected to increase during the forecast period. The growth in the number of the debit card transactions was fueled by consumer perceptions that they provide control on spending and is safe to use. By scheme, the number of debit cards in circulation was dominated by CuentaRut, a domestic player, followed by Visa in 2014. Some of the key players in the debit cards market include Banco BBVA Chile, Banco de Chile and Banco de Crédito e Inversiones. Banco del Estado de Chile was the leading bank in terms of number of debit cards issued in 2014.
The credit card penetration was much lower than the debit card penetration in the country. The transaction value of credit cards reported at POS terminals was greater than at ATMs. Some of the key players in the credit card market in the Chilean card payments include Banco Santander Chile, Banco de Chile and Banco de Crédito e Inversiones. In credit card market, Banco Santander Chile was the leading bank in terms of number of credit cards issued in 2014. In 2014, Visa was a leading scheme in credit card segment.
News Courtesy: P&S Market Research