Market Research Report
Payments Landscape in Uruguay: Opportunities and Risks to 2023
|Published by||GlobalData||Product code||646083|
|Published||Content info||44 Pages
Delivery time: 1-2 business days
|Payments Landscape in Uruguay: Opportunities and Risks to 2023|
|Published: June 28, 2019||Content info: 44 Pages||
Uruguay has seen a gradual shift towards electronic methods of payment during the review period (2015-19e). The government has taken steps to promote electronic payments and reduce the dependence on cash in the last few years. The introduction of a financial inclusion law in 2014 was one of the major milestones; as a result, the percentage of the Uruguayan population aged 15 or above with a bank account rose from 52.6% in 2015 to 71.0% in 2019.
The number of payment cards in circulation, transaction volume, and transaction value recorded robust review-period compound annual growth rates (CAGRs) of 7.1%, 22.9%, and 14.2% respectively - a trend that is anticipated to continue over the forecast period (2019e-23f). The emergence of contactless technology is also expected to support Uruguayan payment card market growth.
Debit card growth has been supported by the country's rising banked population, the government's financial inclusion initiatives, the availability of low-cost bank accounts, and rising adoption of payroll accounts. However, debit card usage is largely restricted to ATM cash withdrawals. To encourage use for payments, the government has taken measures such as reducing VAT on debit card purchases and prohibiting merchants from setting minimum amounts for accepting debit card payments. As a result, debit cards are anticipated to overtake credit cards in terms of card payment transaction value in 2019.
Credit card penetration has traditionally been high in Uruguay compared to many of its regional peers - with each individual holding at least one card on average. This is partly because many banks offer additional cards to existing card holders at no extra cost. To drive credit card usage, banks offer benefits including installment facilities and insurance, as well as loyalty programs and benefits such as reward points and discounts. The reduction in merchant service charges will help drive credit card acceptance among merchants, which in turn should boost the number of credit card payments.
During the review period, the Uruguayan prepaid card market has registered CAGRs of 88.8% and 131.5% in terms of circulation and transaction value. Growth has been supported by the government's financial inclusion law, which encourages the usage of prepaid cards for various purposes like salary credit. In addition, prepaid cards are used for traveling, public transport, and food coupons. Card issuers also offer co-branded prepaid cards, employ a variety of reward benefits, and use consumer segmentation strategies to drive uptake and usage.
The report "Payments Landscape in Uruguay: Opportunities and Risks to 2023", provides detailed analysis of market trends in Uruguay's cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cards, credit transfers, cheques and direct debits during the review-period (2015-19e). 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 (2019e-23f). It also offers information on the country's competitive landscape, including the 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 details of regulatory policy and recent changes in the regulatory structure.
The report provides -
Companies mentioned: Banco Republica, Santander, Scotiabank, BBVA, Itau Unibanco, HSBC, Banco Bandes, Banque Heritage, OCA, Visa, Mastercard, American Express, Diners Club