This Verisk Financial Lafferty Research Country Report delivers commentary on Brazil's retail banking and payments landscape supported by historic and forecast data. The report gives detailed insight into the market's key players, including cards networks, issuers, acquirers, banks, and PSPs, plus the country's payments infrastructure, digital and mobile payments developments, demographic and consumer trends, regulatory drivers, credit card profitability, and more.
What you will learn from this report:
- Where issuers and acquirers are finding healthy income streams
- Why cards are emerging as a favourite payment method for the banked population
- How the debit cards space will fare with new caps on interchange
- Why the credit cards business has great potential (for those who understand this market's dynamics)
- What lies in store for the credit cards market as the global schemes contend with domestic challengers
Brazil Cards and Payments Market Key Facts
- Cards have begun to displace cash as the primary payment instrument for Brazilians: in 2017, total card purchase volume overtook the combined value of ATM withdrawals and cheques.
- The country's retail banking network is extensive, with urban areas well served by branches, cash machines and point-of-sale terminals. There is also an extensive network of banking agents.
- Brazil is in the process of developing a new instant payments platform. Once launched, instant payments will be available 24/7, with the service open to banks and non-banks alike.
- The credit card is the preferred choice for Brazilians when paying for an online purchase. During 2018, credit cards accounted for an estimated 61 percent of the value of e-commerce transactions.
- Brazil's cards market has substantial room for growth. With the country still having a large unbanked population, a mere 60 percent of adults held a debit card in 2018.
- Just one third of Brazilian adults have a credit card, although those that do tend to use them frequently. The average cardholder has three cards and made 135 transactions in 2018.
- New debit card interchange caps came into effect in October 2018. The maximum debit card interchange fee is now set at 0.80 percent of the transaction value, with the average capped at no more than 0.50 percent.
- This represents a significant reduction, as the weighted average debit card interchange fee stood at approximately 0.82 percent in early 2018.
- Although high interest rates discourage the use of cards for borrowing purposes, Brazil remains a highly profitable developing market.
- Elo, the domestic card scheme launched in 2011, has steadily gained market share, particularly in the debit card segment - where it is on course to become the leading network.
- Competition has increased in the merchant acquiring market, which has been historically dominated by Cielo and Rede. However, the pair still acquire over two thirds of card transactions between them.
View the Lafferty Research Brazil Country Report Table of Contents
Demographics and the economy
Key retail banks and issuers
Acquiring and processing
Regulatory and other cards market information
Appendix I: Demographics and the economy
- Demographic and economic indicators
- Ownership of key consumer devices
- Internet usage by population
Appendix II: Payments environment
- Access points
- Account penetration
- Consumer payment trends
- B2C e-commerce payment methods
Appendix III: Cards market
- Total cards payment metrics
- Contactless cards metrics
- Credit card numbers by type
- Total credit cards metrics
- Credit cards profitability indicators
- Debit cards numbers
- Debit cards metrics
Appendix IV: Profit pool
Appendix V: The networks
- Networks' credit card market shares
- Networks' credit card numbers
- Networks' credit card billed volume
- Networks' number of credit card transactions
- Networks' average credit card transaction value
- Credit card interchange fees by network
- Networks' debit card market shares
- Networks' debit card numbers
- Networks' debit card billed volume
- Networks' number of debit card transactions
- Networks' average debit card transaction value
- Debit card interchange fees by network
Appendix VI: Key retail banks and issuers
- Key credit card issuers market shares by credit card numbers
- Key issuers market shares in credit card outstandings
- Key debit card issuers market shares by debit card numbers
Appendix VII: Acquiring and processing
- Merchant acquirer credit card market share
- Credit card merchant service charges
- Merchant acquirer debit card market share
- Debit card merchant service charges
- Credit card issuer/issuing processor relationships
- Credit card acquirer/acquiring processor relationships
- Credit card issuing processor market shares by card numbers
- Credit card acquiring processor market shares by number of POS transactions
Appendix VIII: Online acquiring
- Online merchant acquirer market share