Ken Research
announced its latest publication on, “The Cards and Payments Industry in Peru:
Emerging Trends and Opportunities to 2020”, offering insights on the changing trends and key issues within the
Cards and Payments Industry in Peru. The publication includes an insightful
analysis of market trends in the Peruvian cards and payments industry.The report provides values and volumes for a number of key performance
indicators in the industry, including check payments, payment cards, direct
debits and credit transfers during the review period (2011-2015). The report
also analyses various payment card markets operating in the industry, and
provides detailed information on the number of cards in circulation, and
transaction values and volumes during the review period and over the forecast
period (2016-2020). It also offers information on the country's competitive
landscape, including the market shares of issuers and schemes.
Economic Environment of Peru
Peru is
one of the best performing countries in Latin America. Over the past decade,
Peru has been one of the region’s fastest-growing economies, with an average
growth rate 5.9 percent and low inflation (averaging 2.9 percent). This
scenario of high growth with low inflation can be attributed to a combination
of favourable external environment, prudent macroeconomic policies and
structural reforms in different areas..
Peru has
experienced a drastic decline in poverty rates between 2005 and 2015. The
significant growth in employment and income have reduced poverty rates, from
55.6 percent to 21.8 percent. It is estimated that in 2014 alone, 221,000
people escaped poverty in the country. Extreme poverty also declined
dramatically, from 15.8 percent to 4.1 percent, during the same period.
After a downfall
in GDP in 2014, the GDP growth recovered in 2015, from 2.4 percent to 3.3
percent, owing to increased inventories (mainly copper) and exports (3.3
percent). Private investment contracted by 7.5 percent as result of lower
business confidence and sluggish real estate sector. The inflation rate
exceeded the target range (4.4 percent) given the devaluation of the local
currency, which drove up electricity rates and real estate prices.
In the
forecast period, major challenges to be faced by the economy will include
achieving more sustainable economic growth and further strengthening linkages
between growth and equity. To this end, the country must take into
account the segment of the population that could fall back into poverty as a
result of economic fluctuations, which would reverse the progress made over the
past decade.
Brief Overview of the Cards and
Payment Industry in Peru
The
government of Peru developed the National Financial Inclusion Strategy (NFIS)
in July 2015. It aims to provide access to financial accounts for at least 50%
of the adult population by 2018, and 75% of the adult population by 2021. The
strategy promotes access to savings, insurance and financing, consumer
protection, financial education programs and the use of electronic payment
instruments. A rise in bank penetration is expected to drive demand for
products such as bank accounts and debit cards.
In line
with government's financial inclusion program, the national mobile payments
system Modelo Peru launched Bim mobile money, a fully interoperable payments
platform, in February 2016. Through this, Modelo Peru aims to provide much of
the unbanked population with access to digital financial services. It enables
Peruvians with a mobile phone to open a bank account, transfer funds and make
utility payments, and can be accessed with any basic mobile phone. Modelo Peru
plans to have more than 2 million active Bim mobile money users by 2020. Modelo
Peru is formed by the partnership of 40 Peruvian financial institutions,
including private-sector and state-owned banks, credit unions, microfinance
institutions, non-bank electronic money issuers and telecommunication
companies.
In terms
of number of cards in circulation, the Peru payment cards market grew during
the period 2012-2014 and it is expected to grow further over the forecast
period. The increase in Peru’s GDP per capita and population is expected to
increase the cards usage and also increase the card spending over the forecast
period.
In Peru,
the debit cards dominate the card payments market in terms of number of cards
in circulation as well as in terms of number of transactions and value of
transactions. The transaction value of credit cards reported at POS terminals
was greater than at ATMs.
Major Players in Peruvian Cards and Payment
Industry
Debit
cards dominate the Peruvian cards and payment industry in terms of the number
of cards in circulation and also in terms of number of transactions. Some of
the key players in the debit cards market include Banco de Credito del Peru, BBVA
Continental Scotiabank, Midbanco, Banco Financiero and Banco Falabella Peru.
Banco de Credito del Peru was the leading bank in terms of the number of debit
cards in 2014. Some of the key players in the credit card market of Peru
include Banco Falabella Peru, Banco de Credito del Peru, Interbank, BBVA
Continental and Scotiabank. In the credit card segment, Banco Falabella Peru
was the leading bank in 2014, in terms of number of credit cards in
circulation.
The growth
of the Peruvian Card and Payments market is expected to continue in future. A
large number of 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. Besides these, increase in disposable income
and increasing market for mobile commerce and e-commerce have also contributed
significantly to the growth of the Peruvian Cards and Payments Industry. With high mobile penetration, companies in
Peru are increasingly using mobile technology with a focus on financial
inclusion. Movistar, a mobile operator in Peru, in collaboration with
MasterCard, introduced the country's first electronic mobile money service, Tu
Dinero Movil (Your Mobile Money), in January 2015. The service which is now
available to Movistar's more than 16 million customers is allowing them to
conduct a number of transactions such as money transfers, purchases at
MasterCard-affiliated establishments, and paying for mobile recharges.
Key Topics Covered in the Report
·
Detailed
profile of the Peruvian Cards and Payments Industry
·
Competitive
dynamics in the Peruvian cards and payments industry
·
Historic and forecast values of Peru’s cards and payments industry
·
Market trends and growth opportunities in the Peruvian cards and
payments industry
·
Marketing strategies used for various cards in Peru
·
Regulations governing the Peruvian Cards and Payments Industry
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Contact:
Ken Research
Ankur Gupta, Head Marketing &
Communications
+91-124-4230204
