Market Research Report
Payments Landscape in Chile: Opportunities and Risks to 2022
|Published by||GlobalData||Product code||611831|
|Published||Content info||49 Pages
Delivery time: 1-2 business days
|Payments Landscape in Chile: Opportunities and Risks to 2022|
|Published: March 6, 2019||Content info: 49 Pages||
Cash remains the preferred method of consumer payments in Chile, accounting for 69.9% of the total payment transaction volume in 2018. However, payment card transactions are gradually replacing cash transactions in Chile, mainly on account of government and bank initiatives such as a financial inclusion program and infrastructure modernization. Furthermore, government efforts to provide basic banking and financial services have helped a large proportion of the population to become banked: the percentage of individuals aged over 15 with an account grew from 63.3% in 2014 to 77.4% in 2018.
Additionally, the frequency of payment card use in Chile stood at 53.2 in 2018 - the highest among its regional peers Brazil, Argentina, Mexico, Colombia and Peru. Changing lifestyles and rises in the economically active population, disposable income and the popularity of online shopping supported the growth of payment cards during the review period (2014-18e) - a trend that is anticipated to continue over the forecast period up to 2022.
Banks are offering low-cost banking accounts to bring more of the population under the purview of the formal banking system. BancoEstado, for instance, issues the low-cost CuentaRUT savings account to those who do not qualify for conventional current accounts. These accounts are offered to legal resident females aged 12 and above and legal resident males aged 14 and above, who have a valid identity card.
While credit cards penetration stood at 0.7 cards per inhabitant, the demand for credit cards has been gradually rising, mainly due to increased short-term credit demand among the lower- and middle-class populations. To push credit card adoption, Chilean banks are offering credit cards as part of bundled products. Banks are offering pricing benefits in the form of interest-free installment payments, reward programs and discounts to drive credit card usage.
The e-commerce transaction value in Chile grew from CLP1.3tn ($1.8bn) in 2014 to CLP3.1tn ($4.5bn) in 2018, at a strong review-period CAGR of 25.8%, supported by rising internet and smartphone penetration; annual e-commerce events are also contributing to this growth. The Santiago Chamber of Commerce organizes the Cyber Monday shopping event in Chile for three days every year.
The report "Payments Landscape in Chile: Opportunities and Risks to 2022", provides top-level market analysis, information and insights into the Chilean cards and payments industry, including -
Companies mentioned: BancoEstado, Banco de Chile, Santander, Banco de Credito e Inversiones, Banco Falabella, CAT Administradora de tarjetas, Itau Unibanco, BBVA, Scotiabank, Banco Security, Banco BICE, Banco CorpBanca, Redcompra, Visa, Mastercard, Ripley, American Express, Diners Club, Magna