Market Research Report
Payments Landscape in Venezuela: Opportunities and Risks to 2022
|Published by||GlobalData||Product code||667062|
|Published||Content info||39 Pages
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|Payments Landscape in Venezuela: Opportunities and Risks to 2022|
|Published: May 27, 2019||Content info: 39 Pages||
Venezuela is currently undergoing an economic crisis, with the country on the brink of collapse. This is due to declining global oil prices, the government's restricted fiscal policy, and an over-reliance on oil exports. Hyperinflation and the depreciating local currency have made it inconvenient for Venezuelan consumers to conduct cash payments, as doing so requires carrying cash in bulk. Subsequently, consumers have been forced to migrate from cash-based transactions to card payments, thereby resulting in a significant rise in payment card usage in the country. In terms of overall transaction volume and value, the payment card market recorded respective review-period compound annual growth rates (CAGRs) of 25.1% and 399.3%.
The government has taken various steps to reduce dependence on cash and promote electronic payments, such as the introduction of bitcoin currency petro, an increase to the credit card limit, and the launch of the Billetera Movil app for the purchase of subsidized products. In addition, rising investment in point of sale (POS) infrastructure and growing adoption of mobile wallets will also support payment card market growth in Venezuela.
Debit cards remain the largest market, accounting for 94.4% of overall payment card transaction value in 2018. This was supported by the increasing banked population and the combined efforts of banks and government bodies to promote electronic payments and financial inclusion in the country. Subsequently, the frequency of debit card payments was 93.3 transactions per card per year in 2018 (compared to 7.4 for ATM cash withdrawals).
The credit and charge card market accounted for just 5.6% of total payment card value in 2018. However, the number of credit cards in circulation recorded a review-period CAGR of 5.1%. This was driven by the growing need for credit - especially among the middle class - due to the economic crisis and hyperinflation. The availability of instant credit (separate from the lines of credit attached to cards) and access to discount programs have also driven demand for credit cards in Venezuela.
Amid the growing financial turmoil and hyperinflation in the country, virtual currency bitcoin is gradually gaining acceptance. In February 2018 the government introduced its own digital currency, called petro, which is based on Venezuela's petroleum reserves. Using the virtual currency, individuals can pay for purchases including fuel, air transport, and tourism services. The use of petro will further be extended to paying for public services and taxes.
The report "Payments Landscape in Venezuela: Opportunities and Risks to 2022" provides detailed analysis of market trends in the Venezuelan cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cards, credit transfers, direct debit, and cheques during the review-period (2014-18e). 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 (2018e-22f). It also offers information on the country's competitive landscape, including 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 detailed regulatory policies and recent changes in regulatory structure.
The report "Payments Landscape in Venezuela: Opportunities and Risks to 2022" provides -
The report "Payments Landscape in Venezuela: Opportunities and Risks to 2022" enables the user to -
Companies mentioend: Banesco Banco Universal, Banco de Venezuela, BBVA Provincial, Mercantil Banco Universal, Banco Fondo Comun, Banco Occidental de Descuento, Mastercard, and Visa