Market Research Report
Payments Landscape in Chile: Opportunities and Risks to 2021
|Published by||GlobalData||Product code||611831|
|Published||Content info||44 Pages
|Payments Landscape in Chile: Opportunities and Risks to 2021|
|Published: February 19, 2018||Content info: 44 Pages||
Cash remains the preferred method of consumer payments in Chile, accounting for 73% of the total payment transaction volume in 2017. 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.
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. The bank issues a debit card with the account, which can be used at ATM and POS terminals, although cheque books are not issued. The scheme is offered to legal resident females aged 12 and above and legal resident males aged 14 and above, with the aim of capturing the country's unbanked population. According to BancoEstado, there were 9.7 million CuentaRUT accounts as of September 2017.
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 56.7% in 2013 to 77.6% in 2017.
Demand for credit cards increased during the review period, mainly because of increased short-term credit demand among the lower- and middle-class populations. Banks responded by lowering interest rates for credit card consumer loans; according to the central bank, the average interest rate fell from 34.3% in January 2013 to 21.9% in December 2017.
E-commerce transaction value grew at a strong CAGR of 22.0% during the review-period, supported by a rise in the number of internet and smartphone users coupled with a growing preference of online shopping. E-commerce transactions are high in Chile during festive seasons. Cyber Day in May, for instance, marks the most important day for e-commerce transactions, with online merchants including travel and tourism, electronic, and clothing/apparel retailers recording high demand. Growth in the e-commerce market is also supported by the availability of various alternative payment solutions such as PayPal, Servipag, Masterpass, and Visa Checkout.
The report "Payments Landscape in Chile: Opportunities and Risks to 2021", provide top-level market analysis, information and insights into the Chilean cards and payments industry, including -
Companies mentioned in this report: BancoEstado, Banco de Chile, Santander Chile, Banco de Credito e Inversiones, BancoFalabella, CAT Administradora de tarjetas, BancoItau Chile, Redcompra, Visa, Mastercard, Ripley, American Express, Diners Club, Magna