Brazil Cards and Payments - Opportunities and Risks to 2025

Brazil Cards and Payments - Opportunities and Risks to 2025

Summary
‘Brazil Cards and Payments - Opportunities and Risks to 2025’ report provides detailed analysis of market trends in the Brazilian cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cash, credit transfers, cards, direct debits, and cheques during the review-period (2017-21e).

The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2021e-25f). It also offers information on the country’s competitive landscape, including market shares of issuers and schemes.

The report brings together research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers detailed regulatory policies and recent changes in regulatory structure.

The report provides top-level market analysis, information and insights into the Brazilian cards and payments industry, including -
- Current and forecast values for each market in the Brazilian cards and payments industry, including debit, credit, and charge cards
- Detailed insights into payment instruments including cash, credit transfers, cards, direct debits, and cheques. It also, includes an overview of the country’s key alternative payment instruments.
- Ecommerce market analysis.
- Analysis of various market drivers and regulations governing the Brazilian cards and payments industry.
- Detailed analysis of strategies adopted by banks and other institutions to market debit, credit, and charge cards.
- Comprehensive analysis of consumer attitudes and buying preferences for cards.
- The competitive landscape of the Brazilian cards and payments industry.

Scope
- The emergence of digital wallets will accelerate the shift towards electronic payments in Brazil. In February 2022, payment services provider Rêv announced a partnership with Itau Unibanco to launch Itau Global Wallet. The solution is an app-based digital payment account available to domestic and international customers of Itau Private Bank. Itau Global Wallet was developed by Rêv using its proprietary multi-currency payment processing platform in partnership with Mastercard. Itau Global Wallet is linked to the customer’s Itau bank account, allowing them to make fund transfers and payments. The account also provides a Mastercard debit card, which is available in virtual form for online purchases.
- Rising adoption of contactless payments - driven in part by COVID-19 - is set to boost the use of payment cards in the country. According to the Brazilian Association of Credit Card Companies and Services (Abecs), contactless payments increased by 372% in Q1 2021 compared to Q1 2020. From January to March 2021, BRL18.6 billion ($3.6 billion) worth of contactless card payments were made compared to BRL3.9 billion ($750.9 million) during the same period of 2020. This was supported by the rise in contactless limit from BRL100 ($19.25) to BRL200 ($38.51) in January 2021. To aid this trend, in October 2021, domestic scheme provider Elo launched a new feature in its existing app for merchants to receive contactless payments through mobile devices. With the app installed in the mobile device, merchants can accept contactless card payments as well as via mobile wallets such as Apple Pay and Google Pay.
- The advent of digital-only banks is likely to further accelerate the shift towards electronic payments. In June 2019, Brazilian retail company Via Varejo collaborated with US-based startup Airbox to launch BanQi - a digital bank targeting low-income customers. BanQi offers a Mastercard-branded prepaid card, as well as a digital savings account that allows users to make transfers and pay bills. Previously, mobile-only Nubank was launched in September 2014, offering the NuConta digital account and Mastercard-branded payment cards. As of June 2020, the bank offers services to over 25 million customers in Brazil. In January 2022, Germany-based digital-only bank N26 conducted its pilot launch in Brazil. The bank will offer virtual debit cards.

Reasons to Buy
- Make strategic business decisions, using top-level historic and forecast market data, related to the Brazilian cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in the Brazilian cards and payments industry.
- Assess the competitive dynamics in the Brazilian cards and payments industry.
- Gain insights into marketing strategies used for various card types in Brazil.
- Gain insights into key regulations governing the Brazilian cards and payments industry.