Mexicos Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

Published: Jan, 2014 | Pages: 103 | Publisher: Timetric
Industry: Financial Services | Report Format: Electronic (PDF)

Synopsis
The report provides top-level market analysis, information and insights on Mexico's cards and payments industry, including:
Current and forecast values for each category of Mexico's cards and payments industry, including debit cards, credit cards, prepaid cards and charge cards.
Comprehensive analysis of the industry's market attractiveness and future growth areas.
Analysis of various market drivers and regulations governing Mexico's cards and payments industry.
Detailed analysis of the marketing strategies adopted for selling debit, credit, charge and prepaid cards used by various bankers and other institutions in the market.
Comprehensive analysis of consumer attitudes and buying preferences for cards.
An overview of the competitive landscape of Mexico's cards and payments industry.

Summary
The debit cards category was the prime growth driver of the Mexican card payments channel during the review period (2008?2012), and recorded a CAGR of 13.15% in terms of the volume of cards in circulation. The debit cards category posted the highest transaction value and valued MXN2.6 trillion (US$199.7 billion) in 2012. Within the credit card category, the overall transaction value reached MXN467.2 billion (US$35.4 billion) in 2012.
The prepaid cards category is expected to exhibit strong growth prospects over the forecast period (2013?2017) and post a CAGR of 5.69% in terms of the volume of cards in circulation. This will be driven by government payroll cards, government welfare (benefit cards), prepaid transport cards and prepaid gift cards. In association with mobile services operator Rev Worldwide, domestic bank Banorte launched a general-purpose reloadable card, MiFon. This is expected to support the prepaid cards category over the forecast period. Rather than purchasing products through credit, the Mexican population tends to base their expenditure on their income value, which is expected to increase the scope for prepaid cards as customers are able to define an upper limit on spending.
Scope
This report provides a comprehensive analysis of Mexico's cards and payments industry.
It provides the current value for Mexico's cards and payments industry for 2012, and forecast figures for 2017.
It details the different economic, infrastructural and business drivers affecting Mexico's cards and payments industry.
It outlines the regulatory framework in the industry.
It details the marketing strategies used by various banks and other institutions.
It profiles the major banks in Mexico's cards and payments industry.
Reason To Buy
Make strategic business decisions using top-level historic and forecast market data related to Mexico's cards and payments industry and each market within it.
Understand the key market trends and growth opportunities within Mexico's cards and payments industry.
Assess the competitive dynamics in Mexico's cards and payments industry.
Gain insights in to the marketing strategies used for selling various types of cards in Mexico.
Gain insights into key regulations governing Mexico's cards and payment industry.
Key Highlights
The debit cards category was the prime growth driver of the Mexican card payments channel during the review period (2008?2012), and recorded a CAGR of 13.15% in terms of the volume of cards in circulation. The debit cards category posted the highest transaction value and valued MXN2.6 trillion (US$199.7 billion) in 2012. Within the credit card category, the overall transaction value reached MXN467.2 billion (US$35.4 billion) in 2012.
The prepaid card category has growth prospects. The closed-loop prepaid cards segment is expected to grow at a forecast-period CAGR of 7.84%. General-purpose reloadable prepaid cards are popular and are issued by banks such as Banamex, Walmart and Azteca. There is also potential to expand prepaid gift and government payroll cards.
Mexico's unbanked population offers the industry growth potential. As of 2012, nearly 70% of the population was unbanked, and nearly 54% of municipalities lack access to at least one bank or microfinance institution. Banks have, therefore, taken initiatives to roll out prepaid cards to the unbanked population. Cards can also be obtained from an agent and Banorte Bank, in association with the US-based prepaid card program manager Rev Worldwide, is offering MiFon, a MasterCard-branded general-purpose reloadable prepaid card for unbanked individuals.
Remittance inflows are expected to serve as a key base for expanding card-based payments. In 2012, remittances declined due to immigration restrictions set by the US government and totaled US$22.3 billion. A number of banks such as Banamex and Banorte offer cards for remittances, while money transfer companies such as MoneyGram have developed schemes that facilitate the direct transfer of remittances from the US to Mexico through debit or credit accounts. Remittance inflows provide an opportunity for prepaid cards, such as MasterCard's MoneySend computer- and mobile-based service that enables prepaid cardholders to transfer funds from the US to Mexico.

 1 Executive Summary
2 Alysis of Market Environment and Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technologies
2.1.1 ATMs
2.1.2 POS termils
2.1.3 Internet penetration
2.1.4 Network related
2.2 Business Drivers
2.2.1 Growth of remittance
2.2.2 Emergence of gift card malls
2.2.3 Banking agents
2.2.4 Retail sector dymics
2.3 Economic Drivers
2.3.1 GDP per capita
2.3.2 Stable inflation to encourage the relaxed monetary policy
2.3.3 Large proportion of unbanked population
2.3.4 Decrease in unemployment to encourage card-based payments
3 Cards and Payments Industry Share Alysis
3.1 Overview of the Cards and Payments Industry
3.1.1 Credit transfer
3.1.2 Checks
3.1.3 Cards
3.1.4 Direct debit
4 Regulatory Framework and Card Fraud Statistics
4.1 Regulatory Framework
4.1.1 Regulation regarding interchange fees at POS transactions
4.1.2 Regulation with respect to issuance of credit cards
4.1.3 Law on the Transparency and Order of Fincial Services
4.1.4 KYC/AML requirements
4.1.5 Foreign Direct Investment (FDI) regulations
4.2 Card Fraud Statistics
4.2.1 Counterfeit cards
4.2.2 Card-not-present
4.2.3 Cards lost/stolen
4.2.4 Card ID theft
5 Emerging Consumer Attitudes and Trends
5.1 Market Segmentation and Targeting
5.1.1 Retail segment
5.1.2 Corporate segment
5.2 Travel and Tourism Spending
5.2.1 Outbound tourist volume
5.2.2 Outbound tourist spending
5.2.3 Outbound tourist card spending
5.3 Retail Card Spending
5.3.1 Alysis by product categories
5.3.2 Alysis by retail channels
6 Alysis of Card Payments and Growth Prospects
6.1 Channel Share Alysis by Card Category
6.2 Size and Forecast of the Card Payments Channel
6.2.1 Alysis by card volume
6.2.2 Alysis by transaction value
7 Alysis of Credit Card Payments and Growth Prospects
7.1 Overall Category Size and Forecast
7.1.1 Alysis by volume of cards in circulation
7.1.2 Alysis by transaction value
7.1.3 Alysis by transaction volume
7.2 Transaction Share Alysis by Channel
7.2.1 Alysis by transaction value
7.2.2 Alysis by transaction volume
7.3 Persol Credit Cards Sub-Category Size and Forecast
7.3.1 Alysis by volume of cards in circulation
7.3.2 Alysis by transaction value
7.3.3 Alysis by transaction volume
7.4 Commercial Credit Cards Sub-Category Size and Forecast
7.4.1 Alysis by number of cards in circulation
7.4.2 Alysis by transaction value
7.4.3 Alysis by transaction volume
7.5 Competitive Landscape
7.5.1 Scheme share alysis
7.5.2 Issuer share alysis
8 Alysis of Debit Card Payments and Growth Prospects
8.1 Overall Category Size and Forecast
8.1.1 Alysis by number of cards in circulation
8.1.2 Alysis by transaction value
8.1.3 Alysis by transaction volume
8.2 Transaction Share Alysis by Channel
8.2.1 Alysis by transaction value
8.2.2 Alysis by transaction volume
8.3 Competitive Landscape
8.3.1 Scheme share alysis
8.3.2 Issuer share alysis
9 Alysis of Charge Card Payments and Growth Prospects
9.1 Overall Category Size and Forecast
9.1.1 Alysis by number of cards in circulation
9.1.2 Alysis by transaction value
9.1.3 Alysis by transaction volume
9.2 Transaction Share Alysis by Channel
9.2.1 Alysis by transaction value
9.2.2 Alysis by transaction volume
9.3 Persol Charge Cards Segment Size and Forecast
9.3.1 Alysis by number of cards in circulation
9.3.2 Alysis by transaction value
9.3.3 Alysis by transaction volume
9.4 Commercial Charge Cards Sub-Category Size and Forecast
9.4.1 Alysis by volume of cards in circulation
9.4.2 Alysis by transaction value
9.4.3 Alysis by transaction volume
9.5 Competitive Landscape
9.5.1 Scheme share alysis
9.5.2 Issuer share alysis
10 Alysis of Prepaid Card Payments and Growth Prospects
10.1 Overall Category Size and Forecast
10.1.1 Alysis by number of cards in circulation
10.1.2 Alysis by transaction value
10.2 Open-Loop Prepaid Cards Segment Size and Forecast
10.2.1 Alysis by number of cards in circulation
10.2.2 Alysis by transaction value
10.3 Closed-Loop Prepaid Cards Segment Size and Forecast
10.3.1 Alysis by volume of cards in circulation
10.3.2 Alysis by transaction value
11 Merchant Acquiring
11.1 Merchant Acquirers in Mexico
12 Company Profiles of Card Issuers
12.1 BBVA Bancomer
12.1.1 Key fincials
12.1.2 Card portfolio
12.1.3 Strategies
12.2 BanRegio
12.2.1 Key fincials
12.2.2 Card portfolio
12.2.3 Strategies
12.3 Bamex Bank
12.3.1 Card portfolio
12.3.2 Strategies
12.4 HSBC Mexico
12.4.1 Card portfolio
12.4.2 Strategies
12.5 Grupo Finciero Inbursa, S.A.B. de C.V.
12.5.1 Card portfolio
12.5.2 Strategies
13 Appendix
13.1 Methodology
13.2 Contact Timetric
13.3 About Timetric
13.4 Timetric's Services
13.5 Definitions
13.6 Disclaimer


List of Tables
Table 1: Mexican Payment Channels (MXN Billion), 2008-2012
Table 2: Mexican Interchange Fees for Cards at POS Termils (%)
Table 3: Mexican Card Fraud (MXN Million), 2008-2012
Table 4: Mexican Consumer Spending through Cards by Product Category (MXN Million), 2008-2012
Table 5: Mexican Consumer Spending Through Cards by Retail Channel (MXN Million), 2008-2017
Table 6: Mexican Card Payments Channel by Card Category (Million), 2008-2017
Table 7: Mexican Card Payments Channel Size by Cards Volume (Million), 2008-2017
Table 8: Mexican Card Payments Channel Size by Transaction Value (MXN Trillion), 2008-2017
Table 9: Mexican Card Payments Channel Size by Transaction Value (US$ Billion), 2008-2017
Table 10: Mexican Credit Cards Category Size by Volume of Cards (Million), 2008-2017
Table 11: Mexican Credit Cards Category Size by Transaction Value (MXN Billion), 2008-2017
Table 12: Mexican Credit Cards Category Size by Transaction Value (US$ Billion), 2008-2017
Table 13: Mexican Credit Cards Category Size by Transaction Volume (Million), 2008-2017
Table 14: Mexican Persol Credit Cards Sub-Category Size by Volume of Cards (Million), 2008-2012
Table 15: Mexican Persol Credit Cards Sub-Category Size by Transaction Value (MXN Billion), 2008-2017
Table 16: Mexican Persol Credit Cards Sub-Category Size by Transaction Value (US$ Billion), 2008-2017
Table 17: Mexican Persol Credit Cards Sub-Category Size by Transactions Volume (Million), 2008-2017
Table 18: Mexican Commercial Credit Cards Sub-Category Size by Volume of Cards (Thousands), 2008-2017
Table 19: Mexican Commercial Credit Cards Sub-Category Size by Transaction Value (MXN Billion), 2008-2017
Table 20: Mexican Commercial Credit Cards Sub-Category Size by Transaction Value (US$ Million), 2008-2017
Table 21: Mexican Commercial Credit Cards Sub-Category Size by Transactions Volume (Million), 2008-2017
Table 22: Mexican Debit Cards Category Size by Volume of Cards (Million), 2008-2017
Table 23: Mexican Debit Cards Category Size by Transaction Value (MXN Trillion), 2008-2017
Table 24: Mexican Debit Cards Category Size by Transaction Value (US$ Billion), 2008-2017
Table 25: Mexican Debit Cards Category Size by Transaction Volume (Billion), 2008-2017
Table 26: Mexican Charge Cards Category Size by Volume of Cards (Million), 2008-2017
Table 27: Mexican Charge Cards Category Size by Transaction Value (MXN Billion), 2008-2017
Table 28: Mexican Charge Cards Category Size by Transaction Value (US$ Billion), 2008-2017
Table 29: Mexican Charge Cards Category Size by Volume of Transactions (Million), 2008-2017
Table 30: Mexican Persol Charge Cards Sub-Category Size by Volume of Cards (Million), 2008-2017
Table 31: Mexican Persol Charge Cards Sub-Category Size by Transaction Value (MXN Billion), 2008-2017
Table 32: Mexican Persol Charge Cards Sub-Category Size by Transaction Value (US$ Billion), 2008-2017
Table 33: Mexican Persol Charge Cards Sub-Category Size by Transactions Volume (Million), 2008-2017
Table 34: Mexican Commercial Charge Cards Sub-Category Size by Cards Volume (Thousand), 2008-2017
Table 35: Mexican Commercial Charge Cards Sub-Category Size by Transaction Value (MXN Billion), 2008-2017
Table 36: Mexican Commercial Charge Cards Sub-Category Size by Transaction Value (US$ Million), 2008-2017
Table 37: Mexican Commercial Charge Cards Sub-Category Size by Transaction Volume (Million), 2008-2017
Table 38: Mexican Prepaid Cards Category Size by Volume of Cards (Million), 2008-2017
Table 39: Mexican Prepaid Cards Category Size by Transaction Value (MXN Billion), 2008-2017
Table 40: Mexican Prepaid Cards Category Size by Transaction Value (US$ Billion), 2008-2017
Table 41: Mexican Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2008-2017
Table 42: Mexican Open-Loop Prepaid Cards Segment Size by Transaction Value (MXN Billion), 2008-2017
Table 43: Mexican Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Billion), 2008-2017
Table 44: Mexican Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2008-2017
Table 45: Mexican Closed-Loop Prepaid Cards Segment Size by Transaction Value (MXN Billion),
Table 46: Mexican Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Billion),
Table 47: BBVA Bancomer - Key Fincial Indicators (MXN Billion), December 2011 and 2012
Table 48: BBVA Bancomer - Card Product Offerings and Key Features
Table 49: BanRegio - Key Fincial Indicators (MXN Billion), December 2011 and 2012
Table 50: BanRegio - Card Product Offerings and Key Features
Table 51: Bamex Bank - Card Product Offerings and Key Features
Table 52: HSBC Mexico - Card Product Offerings and Key Features
Table 53: Inbursa - Card Product Offerings and Key Features
Table 54: Key Definitions