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

Published: Jun, 2014 | Pages: 89 | Publisher: Timetric
Industry: Financial Services | Report Format: Electronic (PDF)

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

Summary
The Peruvian economy was impacted heavily by the global financial crisis, with its GDP growth decelerating from 9.8% in 2008 to 0.9% in 2009. Its economy recovered immediately in 2010, however, recording a GDP growth of 8.8%, mainly due to strong macroeconomic indicators, a sound banking system and a prudent fiscal policy, which in turn improved employment levels and per capita income. Improvements in income levels offered a wider market to banks and financial companies, as they were able to serve a larger section of society, resulting in growth of the Peruvian cards and payments industry during the review period (2009-2013).
The Peruvian card payments channel grew at a healthy pace during the review period, both in terms of volume and value. In terms of the number of cards in circulation, the channel increased from 19.4 million in 2009 to 24.7 million in 2013, at a review-period compound annual growth rate (CAGR) of 6.33%. Over the forecast period, this channel is anticipated to register a CAGR of 8.24%, reaching 38.2 million cards by the end of 2018.
In terms of transaction value, card payments increased from PEN84.1 billion (US$27.9 billion) in 2009 to PEN233.2 billion (US$86.3 billion) in 2013, at a review-period CAGR of 29.03%. This figure is forecast to increase further, from PEN282.5 billion (US$101.6 billion) in 2014 to PEN552.3 billion (US$202.1 billion) in 2018, at a forecast-period CAGR of 18.24%.
Many factors have contributed to the growth of the Peruvian card payments channel over the review period, both in volume and value. Examples of this include the government's initiative to provide banking access through the financial inclusion plan, the growing popularity of payment cards, the availability of retail bank agents in every part of the country, and banks' aggressive promotional strategies.
Scope
This report provides a comprehensive analysis of Peru's cards and payments industry.
It provides current values for Peru's cards and payments industry for 2013, and forecast figures for 2018.
It details the different economic, infrastructural and business drivers affecting Peru's cards and payments industry.
It outlines the current regulatory framework in the industry.
It details the marketing strategies used by various banks and other institutions.
It profiles the major banks in Peru's cards and payments industry.
Reason To Buy
Make strategic business decisions using top-level historic and forecast market data related to Peru's cards and payments industry and each market within it.
Understand the key market trends and growth opportunities within Peru's cards and payments industry.
Assess the competitive dynamics in Peru's cards and payments industry.
Gain insights in to the marketing strategies used for selling various card types in Peru.
Gain insights into key regulations governing Peru's cards and payments industry.

Key Highlights
The Peruvian card payments channel grew at a healthy pace during the review period, both in terms of volume and value. In terms of the number of cards in circulation, the channel increased from 19.4 million in 2009 to 24.7 million in 2013, at a review-period compound annual growth rate (CAGR) of 6.33%. Over the forecast period, this channel is anticipated to register a CAGR of 8.24%, reaching 38.2 million cards by the end of 2018.
In terms of transaction value, card payments increased from PEN84.1 billion (US$27.9 billion) in 2009 to PEN233.2 billion (US$86.3 billion) in 2013, at a review-period CAGR of 29.03%. This figure is forecast to increase further, from PEN282.5 billion (US$101.6 billion) in 2014 to PEN552.3 billion (US$202.1 billion) in 2018, at a forecast-period CAGR of 18.24%.
In 2005, regulations were introduced which allowed banks to offer financial services through third-party agents, subject to prior authorization from the Banking and Insurance Superintendency (SBS). Agents are typically small retail establishments through which banks are able to execute financial transactions such as loan payments, withdrawals, transfers, deposits to a customer or a third party's account, payments on goods or services, and other functions permitted by the SBS.
The Peruvian government introduced e-money regulations in May 2012, as part of its financial inclusion plan to bring a large section of the unbanked population into the formal banking system. E-money regulations were adopted primarily to benefit Peruvian citizens living in rural areas who have little access to banking services and infrastructure. Under the regulations, banks, financial companies and savings banks authorized by SBS are allowed to offer e-money services, although this will also pave the way for Electronic Money Issuer Companies (EEDE), specialized companies that offer e-money services.
Mobile payments (m-payments) grew from PEN236.7 million (US$78.6 million) in 2009 to PEN1.4 billion (US$528.0 million) in 2013, and are anticipated to reach PEN4.2 billion (US$1.5 billion) in 2018. Similarly, e-commerce registered a review-period CAGR of 31.55%, rising from PEN853.7 million (US$283.5 million) in 2009 to PEN2.6 billion (US$945.5 million) in 2013, and is anticipated to grow even further over the forecast period.
In line with the increase of outbound travelers, outbound travel spending among the retail and corporate segments increased at a CAGR of 6.21% during the review period, and is anticipated to increase further over the forecast period, reaching a CAGR of 4.06% and further fueling the growth of travel cards.

 1 Executive Summary
2 Alysis of Market Environment, Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technology
2.1.1 Rising internet penetration
2.1.2 Growing mobile payments
2.1.3 Automated teller machines (ATMs)
2.1.4 Agents and low cost banking channels
2.1.5 Point-of-sale (POS) termils
2.2 Business Drivers
2.2.1 Growth in retail industry
2.2.2 Growth in e-commerce
2.3 Economic Drivers
2.3.1 GDP growth
2.3.2 GDP per capita
2.3.3 Inflation
3 Cards and Payments Industry Share Alysis
3.1 Industry Overview
3.1.1 Credit transfer
3.1.2 Check payments
3.1.3 Card transactions
3.1.4 Cash transactions
3.1.5 Direct debit
4 Regulatory Framework and Card Fraud Statistics
4.1 Regulatory Framework
4.1.1 Overview
4.1.2 Anti-money laundering (AML) and terrorist fincing (TF)
4.1.3 Foreign direct investment (FDI) regulations
4.2 Card Fraud Statistics
4.2.1 Card-not-present fraud
4.2.2 Counterfeit card fraud
4.2.3 Lost or stolen card
4.2.4 Card ID theft
5 Emerging Consumer Attitudes and Trends
5.1 Industry Segmentation and Targeting
5.1.1 Retail segment
5.1.2 Corporate segment
5.2 Travel and Tourism Spending
5.2.1 Outbound tourist trips
5.2.2 Outbound tourist spending
5.3 Retail Card Spending
5.3.1 Alysis by product categories
5.3.2 Alysis by retail channel
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 number of cards in circulation
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 number 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 Segment Size and Forecast
7.3.1 Alysis by number of cards in circulation
7.3.2 Alysis by transaction value
7.3.3 Alysis by transaction volume
7.4 Commercial Credit Cards Segment 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 Prepaid 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
9.2 Open-Loop Prepaid Cards Segment Size and Forecast
9.2.1 Alysis by number of cards in circulation
9.2.2 Alysis by transaction value
9.3 Closed-Loop Prepaid Cards Segment Size and Forecast
9.3.1 Alysis by number of cards in circulation
9.3.2 Alysis by transaction value
10 Merchant Acquiring
11 Company Profiles of Card Issuers
11.1 Banco de Credito del Peru (BCP)
11.1.1 Key fincials
11.1.2 Card portfolio
11.1.3 Strategies
11.2 Banco Finciero
11.2.1 Key fincials
11.2.2 Card portfolio
11.2.3 Strategies
11.3 Interbank
11.3.1 Key fincials
11.3.2 Card portfolio
11.3.3 Strategies
11.4 BBVA Continental
11.4.1 Key fincials
11.4.2 Card portfolio
11.4.3 Strategies
11.5 Banco Falabella
11.5.1 Card portfolio
11.5.2 Strategies
12 Appendix
12.1 Methodology
12.2 Contact Timetric
12.3 About Timetric
12.4 Timetric's Services
12.5 Definitions
12.6 Disclaimer


List of Tables
Table 1: Peruvian Payment Channels (PEN Billion), 2009-2013
Table 2: Market Entry Strategies of Foreign Banks
Table 3: Peruvian Card Fraud (PEN Thousand), 2009-2013
Table 4: Peruvian Cards for High-Income Customers
Table 5: Peruvian Shopping Cards by Bank
Table 6: Peruvian Cards Offered to Low Income Customers by Bank
Table 7: Peruvian Travel Cards by Bank
Table 8: Peruvian Cards Offered for SMEs and Large Corporations by Bank
Table 9: Peruvian Consumer Card Spending by Product Category (PEN Million), 2008 and 2012
Table 10: Peruvian Consumer Card Spending by Retail Channel (PEN Million), 2008 and 2012
Table 11: Peruvian Card Payments Channel by Card Category (Million), 2009-2018
Table 12: Peruvian Card Payments Channel Size by Volume of Cards (Million), 2009-2018
Table 13: Peruvian Card Payments Channel Size by Transaction Value (PEN Billion), 2009-2018
Table 14: Peruvian Card Payments Channel Size by Transaction Value (US$ Billion), 2009-2018
Table 15: Peruvian Credit Cards Category Size by Volume of Cards (Million), 2009-2018
Table 16: Peruvian Credit Cards Category Size by Transaction Value (PEN Billion), 2009-2018
Table 17: Peruvian Credit Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 18: Peruvian Credit Cards Category Size by Transaction Volume (Million), 2009-2018
Table 19: Peruvian Persol Credit Cards Segment Size by Volume of Cards (Million), 2009-2018
Table 20: Peruvian Persol Credit Cards Segment Size by Transaction Value (PEN Billion), 2009-2018
Table 21: Peruvian Persol Credit Cards Segment Size by Transaction Value (US$ Billion), 2009-2018
Table 22: Peruvian Persol Credit Cards Segment Size by Transaction Volume (Million), 2009-2018
Table 23: Peruvian Commercial Credit Cards Segment Size by Volume of Cards (Thousand),  2009-2018
Table 24: Peruvian Commercial Credit Cards Segment Size by Transaction Value (PEN Million), 2009-2018
Table 25: Peruvian Commercial Credit Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 26: Peruvian Commercial Credit Cards Segment Size by Transaction Volume (Million), 2009-2018
Table 27: Peruvian Debit Cards Category Size by Volume of Cards (Million), 2009-2018
Table 28: Peruvian Debit Cards Category Size by Transaction Value (PEN Billion), 2009-2018
Table 29: Peruvian Debit Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 30: Peruvian Debit Cards Category Size by Transaction Volume (Million), 2009-2018
Table 31: Peruvian Prepaid Cards Category Size by Volume of Cards (Thousand), 2009-2018
Table 32: Peruvian Prepaid Cards Category Size by Transaction Value (PEN Million), 2009-2018
Table 33: Peruvian Prepaid Cards Category Size by Transaction Value (US$ Million), 2009-2018
Table 34: Peruvian Open-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 35: Peruvian Open-Loop Prepaid Cards Segment Size by Transaction Value (PEN Million), 2009-2018
Table 36: Peruvian Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 37: Peruvian Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 38: Peruvian Closed-Loop Prepaid Cards Segment Size by Transaction Value (PEN Million), 2009-2018
Table 39: Peruvian Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 40: BCP - Key Fincial Indicators (PEN Million), Year Ending December, 2011-2012
Table 41: BCP - Card Portfolio and Key Features
Table 42: Banco Finciero - Key Fincial Indicators (US$ Thousand), Year Ending December, 2011-2012
Table 43: Banco Finciero - Card Portfolio and Key Features
Table 44: Interbank - Key Fincial Indicators (PEN Million), Year Ending December, 2011-2012
Table 45: Interbank - Card Portfolio and Key Features
Table 46: BBVA Continental - Key Fincial Indicators (PEN Million), Year Ending December,  2012-2013
Table 47: BBVA Continental - Card Portfolio and Key Features
Table 48: Banco Falabella - Card Portfolio and Key Features
Table 49: Key Definitions