Mexico's Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

Mexico's Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

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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.

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.
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.
Reasons to Purchase
  • 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.


Table of Contents

1 Executive Summary
2 Analysis of Market Environment and Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technologies
2.1.1 ATMs
2.1.2 POS terminals
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 dynamics
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 Analysis
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 Financial 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 Analysis by product categories
5.3.2 Analysis by retail channels
6 Analysis of Card Payments and Growth Prospects
6.1 Channel Share Analysis by Card Category
6.2 Size and Forecast of the Card Payments Channel
6.2.1 Analysis by card volume
6.2.2 Analysis by transaction value
7 Analysis of Credit Card Payments and Growth Prospects
7.1 Overall Category Size and Forecast
7.1.1 Analysis by volume of cards in circulation
7.1.2 Analysis by transaction value
7.1.3 Analysis by transaction volume
7.2 Transaction Share Analysis by Channel
7.2.1 Analysis by transaction value
7.2.2 Analysis by transaction volume
7.3 Personal Credit Cards Sub-Category Size and Forecast
7.3.1 Analysis by volume of cards in circulation


Companies Mentioned:

BBVA Bancomer
Banco Regional de Monterrey S.A.
Banco Nacional de Mexico
HSBC Mexico SA
Grupo Financiero Inbursa, SAB de CV
MasterCard
Visa