In terms of number of cards in circulation, the Brazilian payment cards market grew at a CAGR of 6.5% during the period 2012-2014 and it is expected to further grow over the forecast period, but at a slower pace. The growth of the Brazilian card payments market will be driven by growing disposable income, growth of retail sector, an increasing market for mobile commerce and greater acceptance of payment cards in the country. Brazil population grew from 199.2 million in 2012 to 202.7 million in 2014, and is expected to reach 210.8 million by 2020. This increase in population is expected to encourage card spending over the forecast period.
The debit cards dominated the Brazilian card payments market in terms of number of cards in circulation. Average debit card transaction value increased from BRL 159.8 in 2012 to BRL 170.2 in 2014, at a CAGR of 3.2%. The average transaction value is anticipated to grow at a CAGR of 0.9% during the period 2015-2020. Some of the key players in the debit cards market include Banco do Brasil, Caixa Econômica Federal, Banco Bradesco, Banco Santander, and Itau Unibanco. Caixa Econômica Federal was the leading bank in terms of number of debit cards issued in 2014.
Credit cards are primarily used by consumers at POS terminals for retail purchases, rather than for cash withdrawals at ATMs. The average credit card transaction value in Brazil grew from BRL 118.4 in 2012 to BRL 126.6 in 2014, at a CAGR of 3%. The average transaction value is anticipated to increase at a CAGR of 2.0% during the forecast period of 2015-2020. Credit cards dominate e-commerce market because of attractive promotional offers such as discounts and free shipping. With increased number of retailers moving their business operations online, to increase market share and to expand their customer base, the e-commerce growth is expected to continue in Brazil. Some of the key players in the credit card market of Brazil include Banco do Brasil, Caixa Econômica Federal, Banco Bradesco, Banco Santander, Itau Unibanco, Citi and HSBC.
In December 2015, Morpho announced the production of smart card modules for “Elo”, a 100% Brazilian payment association set up by Bradesco, Banco do Brasil and CAIXA. Morpho created a smart card operating system for the Brazilian company, allowing every smart card to be used for banking applications as well as for shopping with credit and debit functions, accepted at more than 1.7 million point of sales terminals and establishments.
News Courtesy: P&S Market Research