Emerging Opportunities in Argentina’s Cards and Payments Industry: Market Size, Trends and Drivers, Strategies, Products and Competitive Landscape

Published: November 2012
No. of Pages: 89
  

Synopsis

The report provides market analysis, information and insights into Argentina’s cards and payments industry, including:

  • Current and forecast values for each category of Argentina’s cards and payments industry including debit cards, credit cards, prepaid cards and charge cards
  • Comprehensive analysis of the industry’s market attractiveness and future growth areas
  • Analysis of various market drivers and regulations governing Argentina’s cards and payments industry
  • Detailed analysis of the marketing strategies adopted for selling various categories of cards such as debit, credit, prepaid and charge cards used by various bankers and other institutions in the market
  • Comprehensive analysis of consumer attitudes and their buying preferences for cards
  • Competitive landscape of Argentina’s cards and payments industry

Summary

The Argentinian cards and payments industry registered marginal growth during the review period (2008–2012). Combined card volume recorded a growth rate of 11.5% in 2012 over figures from 2011. The positive economic outlook, a need for more sophisticated products in terms of prepaid and charge cards, the growth of retail commerce and an increased demand for prepaid products supported the overall growth of the industry. During the review period, the size of the cards and payments industry, in terms of volume, increased at a CAGR of 12.84% to reach 57.6 million cards in 2012. In value terms, Argentina''s cards and payments industry valued ARS217.5 billion (US$52.8 billion) in 2012. Over the forecast period, card payments are expected to deliver strong growth as consumers increasingly move away from cash transactions. The Argentinian government’s continuous implementation of economic policies in 2011 and 2012 enabled strong economic growth. This caused an increase in imports and exports which were up by 31% and 23% respectively in 2011. Foreign investment is heavily encouraged and, currently, around 500 US companies operate in Argentina employing over 155,000 Argentinian workers. Government policies created positive income growth, particularly in vulnerable sectors, leading to the increased adoption of various cards and heightened consumer purchasing power.

Scope

  • This report provides a comprehensive analysis of Argentina’s cards and payments industry
  • It provides current values for Argentina’s cards and payments industry for 2012 and forecast figures for 2017
  • It details the different macroeconomic, infrastructural, consumer and business drivers affecting Argentina’s cards and payments industry
  • It outlines the current regulatory frameworks in the industry
  • It details the marketing strategies used by various bankers and other institutions
  • It profiles the major banks in Argentina’s cards and payments industry

Reasons To Buy

  • Make strategic business decisions using historic and forecast market data related to Argentina’s cards and payments industry and each market within it
  • Understand the key market trends and growth opportunities within Argentina’s cards and payments industry
  • Assess the competitive dynamics in Argentina’s cards and payments industry
  • Gain insights into the marketing strategies used for selling various categories of cards in Argentina
  • Gain insights into key regulations governing Argentina’s cards and payments industry

Key Highlights

  • In value terms, Argentina''s cards and payments industry valued ARS217.5 billion (US$52.8 billion) in 2012. Over the forecast period, card payments are expected to deliver strong growth as consumers increasingly move away from cash transactions.
  • As of 2012, Argentina’s cards and payment industry is migrating to PBOC 2.0 standards. Cards will be adopted progressively more with proven security measures and enhanced processing speeds.
  • According to Argentina’s Chamber of E-Commerce (CACE), e-commerce is estimated to grow at a rate of 41% in 2012, and is expected to continue throughout the forecast period, which will drive expansion for the cards and payments industry.
  • Argentina’s consumers are heavily swayed by associated costs rather than service and convenience, and prefer to use cash when making purchases in order to avoid taxes.
  • Card fraud grew from ARS99.4 million in 2008 to ARS148.3 million in 2012. The major sources of fraud are from POS terminals.
  • Cards and payments penetration in Argentina is very low. Of the total purchases made in 2012, cash accounted for a 43.1% share, while card transactions had a 6.8% share of total purchases.
  • Wealth distribution in Argentina is highly polarized with a 49.36% income share held by just 20% of population.
  • Most banks offer either 5% cash back or a rebate on 5% VAT on retail purchases made by debit cards. Banco Galicia, HSBC and Macro offer this scheme.

Emerging Opportunities in Argentina’s Cards and Payments Industry: Market Size, Trends and Drivers, Strategies, Products and Competitive Landscape

Table of Contents

1 Executive Summary

2 Market Attractiveness and Future Prospects of Cards and Payments Industry

3 Analysis of Country Cards and Payments Market Drivers
3.1 Economic Fundamentals
3.1.1 GDP
3.1.2 Improvement in employment
3.1.3 Continuous financial policies for economy growth
3.2 Infrastructure Drivers
3.2.1 Increasing number of internet users
3.2.2 Improving payment infrastructure
3.2.3 Increasing acceptance of EMV cards
3.2.4 Number of ATMs
3.3 Business Drivers
3.3.1 Growing E-commerce market
3.3.2 Tourism plays a crucial role in Argentina’s economy growth
3.3.3 Growing trading partnerships
3.4 Consumer Drivers
3.4.1 Urban vs. rural population
3.4.2 Increase in smart cards usage by students
3.5 Card Fraud Statistics
3.5.1 By channel
3.6 Regulatory Framework

4 Emerging Consumer Attitudes and Trends
4.1 Market Segmentation and Targeting
4.1.1 Retail segment
4.1.2 Corporate sector
4.1.3 Agricultural sector
4.2 Consumer Preference – Price, Convenience and Services
4.2.1 Price
4.2.2 Convenience
4.2.3 Services
4.3 Online Buying Behaviour

5 Competitive Landscape and Industry Dynamics
5.1 Market Share Analysis by Payment Channel
5.1.1 Overview of payment channels
5.1.2 Cash
5.1.3 Credit transfer
5.1.4 Direct debit
5.1.5 Cards
5.1.6 Checks
5.2 Debit Cards Market Share
5.2.1 By banks
5.2.2 By scheme
5.3 Credit Cards Market Share
5.3.1 By bank
5.3.2 By schemes
5.4 Charge Cards Market Share

6 Strategies Adopted by Key Players
6.1 Market Entry Strategies
6.2 Marketing / Product Strategy
6.2.1 Debit cards
6.2.2 Credit cards
6.3 Pricing Strategies

7 Market Size and Growth Potential of Payment Card Industry
7.1 Market Share Analysis by Type of Card
7.2 Total Market Size and Forecast of Card Industry
7.2.1 Analysis by number of cards
7.2.2 Analysis by transaction value
7.2.3 Analysis by transaction volume
7.3 Debit Card Market Size and Forecast
7.3.1 Analysis by number of cards
7.3.2 Analysis by transaction value
7.3.3 Analysis by transaction volume
7.3.4 Other key performance indicators
7.4 Prepaid Card Market Size and Forecast
7.4.1 Analysis by number of cards
7.4.2 Analysis by transaction value
7.5 Charge Card Market Size and Forecast
7.5.1 Analysis by number of cards
7.5.2 Analysis by transaction value
7.5.3 Analysis by transaction volume
7.6 Credit Card Market Size and Forecast
7.6.1 Analysis by number of cards
7.6.2 Analysis by transaction value
7.6.3 Analysis by transaction volume
7.6.4 Other key performance indicators

8 Company Profiles, Product, and Marketing Strategies
8.1 Banco de la Nacion Argentina
8.1.1 Strategies
8.1.2 Debit cards offered
8.1.3 Credit cards offered
8.2 Banco de Galicia y Buenos Aires S.A (Banco Galicia)
8.2.1 Strategies
8.2.2 Prepaid cards offered
8.2.3 Credit cards offered
8.2.4 Financial performance
8.3 Banco Macro SA
8.3.1 Strategies
8.3.2 Debit cards offered
8.3.3 Credit cards offered
8.3.4 Prepaid cards offered
8.3.5 Financial performance

9 Appendix
9.1 Methodology
9.2 Definitions
9.3 Contact Us
9.4 About Timetric
9.4.1 Our Approach
9.5 Services
9.6 Disclaimer

List of Tables

Table 1: Main Payment Methods Available for Argentinian E-commerce
Table 2: Payment Channels in Argentina, 2008 and 2012
Table 3: Argentinian Cards Market by Type of Card (Number in Thousands), 2008–2017
Table 4: Argentinian Cards Industry Size by Volume (Thousands), 2008–2017
Table 5: Argentinian Cards Industry Size by Transaction Value (ARS Million), 2008–2017
Table 6: Argentinian Cards Market Size by Transaction Value (US$ Million), 2008–2017
Table 7: Argentinian Cards Industry Size by Transaction Volume (Millions), 2008–2017
Table 8: Argentinian Debit Card Category Size by Volume (Thousands), 2008–2017
Table 9: Argentinian Debit Card Category Size by Transaction Value (ARS Million), 2008–2017
Table 10: Argentinian Debit Card Category Size by Transaction Value (US$ Million), 2008–2017
Table 11: Argentinian Debit Card Category Size by Transaction Volume (Million), 2008–2017
Table 12: Argentinian Debit Card Category Size by Frequency of Use (Transactions/Card/Year),
Table 13: Argentinian Prepaid Card Category Size (Thousands), 2008–2017
Table 14: Argentinian Open-Loop Prepaid Card Segment Size by Volume (Thousand), 2008–2017
Table 15: Argentinian Closed-Loop Prepaid Card Segment Size (Thousands), 2008–2017
Table 16: Argentinian Prepaid Cards Category Size (ARS Million), 2008–2017
Table 17: Argentinian Prepaid Cards Category Size (US$ Million), 2008–2017
Table 18: Argentinian Charge Card Category Size by Volume (Thousand), 2008–2017
Table 19: Argentinian Charge Card Category Size by Transaction Value (ARS Million), 2008–2017
Table 20: Argentinian Charge Card Category Size by Transaction Value (US$ Million), 2008–2017
Table 21: Argentinian Charge Card Category Size by Transaction Volume (Million), 2008–2017
Table 22: Argentinian Credit Card Category Size by Volume (Thousand), 2008–2017
Table 23: Argentinian Credit Card Category Size by Transaction Value (ARS Million), 2008–2017
Table 24: Argentinian Credit Card Category Size by Transaction Value (US$ Million), 2008–2017
Table 25: Argentinian Credit Card Category Size by Transaction Volume (Million), 2008–2017
Table 26: Argentinian Credit Card Category Size by Frequency of Use (Transactions/Card/Year),
Table 27: Argentinian Credit Card Category Size by Average Transaction Value (ARS), 2008–2017
Table 28: Argentinian Credit Card Category Size by Average Transaction Value (US$), 2008–2017
Table 29: BNA Deals and Offers for Credit Card Users
Table 30: Banco Galicia Financial Position (ARS Million)
Table 31: Banco Macro Financial Position (ARS Million)
Table 32: Cards and Payments Key Definitions

List of Figures

Figure 1: Current and Future Prospects of Various Cards in Argentina
Figure 2: Growth Potential of the Argentinian Cards and Payments Industry by Area of Usage
Figure 3: Argentinian GDP Growth Rate, 2008–2012
Figure 4: Argentinian Unemployment Rate (%), 2008–2012
Figure 5: Argentinian Unemployment Rate Statistics, 2011
Figure 6: Internet Penetration in Argentina (%), 2008 – 2012
Figure 7: Number of ATMs in Argentina (Thousands), 2008–2017
Figure 8: Argentinian Urban vs. Rural Populations (%), 2008 – 2012
Figure 9: Example of Banco Santander’s University Smart Card
Figure 10: Argentinian Card Fraud Statistics (ARS Million), 2008–2012
Figure 11: Argentina’s Cards and Payments Industry Segmentation by Card Type
Figure 12: Debit and Credit Cards Offered to HNWIs in Argentina
Figure 13: Special Cards Offered in Argentina
Figure 14: Debit and Credit Cards for Women
Figure 15: Credit Cards Offered for SMEs
Figure 16: Credit Cards Offered for Corporate Customers
Figure 17: Specialized Credit Cards for Agricultural Customers
Figure 18: Argentinian Consumer Preferences on Various Types of Cards
Figure 19: E-commerce Penetration in Argentina
Figure 20: Share of Different Payment Methods in Argentina, 2012
Figure 21: Argentinian Value of Cash-Based Transactions (ARS Million), 2008–2012
Figure 22: Argentinian Growth in Value of Credit Transfers (ARS Million), 2008–2012
Figure 23: Argentinian Growth in Value of Direct Debit Transactions (ARS Million), 2008–2012
Figure 24: Argentinian Value and Growth of Card Transactions (ARS Million), 2008–2012
Figure 25: Argentinian Growth in Value of Check-Based Transactions (ARS Million), 2008–2012
Figure 26: Argentinian Debit Card Market Share by Bank (%), 2011
Figure 27: Argentinian Debit Card Market Share by Schemes (%), 2011
Figure 28: Argentinian Credit Card Market Share by Banks (%), 2011
Figure 29: Argentinian Credit Card Market Share by Schemes (%), 2011
Figure 30: Argentinian Charge Card Market Share by Scheme (%), 2011
Figure 31: Market Entry Strategies of Foreign Banks in Argentina
Figure 32: Marketing Strategies Adopted by Argentine Banks Based on Card Type
Figure 33: Pricing Strategies for Credit Cards in Argentina
Figure 34: Argentinian Cards Market by Type of Card (%), 2008–2017
Figure 35: Argentinian Cards Industry Size by Volume (Thousands), 2008–2017
Figure 36: Argentinian Cards Industry Size by Transaction Value (ARS Million), 2008–2017
Figure 37: Argentinian Cards Industry Size by Transaction Volume (Millions), 2008–2017
Figure 38: Argentinian Debit Card Category Size by Volume (Thousands), 2008–2017
Figure 39: Argentinian Debit Card Category Size by Transaction Value (ARS Million), 2008–2017
Figure 40: Argentinian Debit Card Category Size by Transaction Volume (Million), 2008–2017
Figure 41: Argentinian Debit Card Category Size by Frequency of Use (Transactions/Card/Year), 2008–2017
Figure 42: Debit Card Usage ATMs and POSs Terminals (Thousands), 2008–2017
Figure 43: Argentinian Prepaid Card Category Size (Thousands), 2008–2017
Figure 44: Argentinian Open-Loop Prepaid Card Segment Size by Volume (Thousand), 2008–2017
Figure 45: Argentinian Closed-Loop Prepaid Card Segment Size (Thousands), 2008–2017
Figure 46: Argentinian Prepaid Cards Category Size (ARS Million), 2008–2017
Figure 47: Argentinian Charge Card Category Size by Volume (Thousand), 2008–2017
Figure 48: Argentinian Charge Card Category Size by Transaction Value (ARS Million), 2008–2017
Figure 49: Argentinian Charge Card Category Size by Transaction Volume (Million), 2008–2017
Figure 50: Argentinian Credit Card Category Size by Volume (Thousand), 2008–2017
Figure 51: Argentinian Credit Card Category Size by Transaction Value (ARS Million), 2008–2017
Figure 52: Argentinian Credit Card Category Size by Transaction Volume (Million), 2008–2017
Figure 53: Argentinian Credit Card Category Size by Frequency of Use (Transactions/Card/Year),
Figure 54: Argentinian Credit Card Category Size by Average Transaction Value (ARS), 2008–2017
Figure 55: BNA Market Segmentation of the Cards Offered
Figure 56: Products Offered Through the National Bank Benefit Program
Figure 57: Banco Galicia Market Segmentation of The Cards Offered
Figure 58: Banco Galicia Promotional Offers for Debit and Credit Card Users
Figure 59: Banco Macro Market Segmentation of the Cards Offered
Figure 60: Products Offered by Macro through Reward Points
Figure 61: Banco Macro Promotional Offers for Debit and Credit Card Users

Published By: Timetric
Product Code: Timetric429


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