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

Synopsis
The report provides market analysis, information and insights into Peru’s cards and payments market, including:
• Current and forecast values for each category of Peru’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 Peru’s cards and payments industry
• Detailed analysis of the marketing strategies adopted for selling debit, credit, charge and prepaid 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 Peru’s cards and payments industry

Summary
The Peruvian economy has shown a significant upward trend over the last ten years (2002–2012) which has been mainly reflected in sustained annual growth in gross domestic product (GDP). In 2012, Peru’s GDP expanded 6.5% in the third quarter, after expansions of 7.5% in the second quarter and 5.2% in first, mainly driven by domestic demand which grew by nearly 10% in the third quarter of 2012. Peru’s banking system has shown tremendous growth with the steadily growing economy. However, despite its sound economy, the country still has relatively low banking penetration of 25% in comparison with other countries in Latin America, such as Brazil with 45%, and Chile with 60%. This gives financial institutions opportunities to introduce financial products and services to capture this unbanked population. During the review period (2008–2012), both the debit and credit card categories registered slight declines, with respective CAGRs of -3.65% and -1.14%, due to the impact of the global recession in 2009. The number of debit cards fell from 12.3 million in 2008 to 10.6 million in 2012, whereas the number of credit cards fell from 6.0 million to 5.8 million during the same period. Prepaid cards registered the highest growth during the review period with a CAGR of 20.84%, rising from 4.1 million cards in 2008 to 8.7 million in 2012. The prepaid cards category is mainly driven by the country’s unbanked population, and payment service providers are already benefiting from the country’s low banking penetration by offering prepaid cards.

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

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

Key Highlights
• The Peruvian economy has shown a significant upward trend over the last ten years (2002–2012) which has been mainly reflected in sustained annual growth in gross domestic product (GDP). In 2012, Peru’s GDP expanded 6.5% in the third quarter, after expansions of 7.5% in the second quarter and 5.2% in first, mainly driven by domestic demand which grew by nearly 10% in the third quarter of 2012.
• During the review period (2008–2012), both the debit and credit card categories registered slight declines, with respective CAGRs of -3.65% and -1.14%, due to the impact of the global recession in 2009. The number of debit cards fell from 12.3 million in 2008 to 10.6 million in 2012, whereas the number of credit cards fell from 6.0 million to 5.8 million during the same period. Prepaid cards registered the highest growth during the review period with a CAGR of 20.84%, rising from 4.1 million cards in 2008 to 8.7 million in 2012.
• E-commerce is an emerging trend which is growing significantly with increasing numbers of internet and smartphone users in Peru. The country’s internet sales recorded 50% growth in 2011, from PEN1.2 billion (US$407.3 million) in 2010 to PEN1.7 billion (US$611 million) in 2011. In 2012, Peru recorded a significant internet penetration of 37.3%, and nearly 47% of total internet users purchase products and services online.
• Peru’s mobile market has a significant potential to expand due to the country’s growing economy. In November 2012, payment solutions provider Ingenico announced the deployment of the new iWL250 3G terminal in Peru with VisaNet, Visa’s electronic payment processing network in Peru.

Table of Contents
1 Executive Summary
2 Market Attractiveness and Future Prospects of the Cards and Payments Industry
3 Analysis of Peruvian Cards and Payments Industry Drivers
3.1 Economic Fundamentals
3.1.1 GDP growth
3.1.2 Urban employment
3.1.3 Rising per capita income
3.2 Infrastructure Drivers
3.2.1 Increasing number of internet users
3.2.2 Increasing smartphone penetration
3.2.3 Wireless 3G payment terminals
3.2.4 Growing number of ATMs
3.2.5 Increasing number of POS terminals
3.3 Business Drivers
3.3.1 Growing retail sector
3.3.2 Lower banking penetration
3.3.3 E-commerce dynamism
3.3.4 Agent banking
3.4 Consumer Drivers
3.4.1 Private consumption
3.4.2 Urban vs rural populations
3.4.3 Declining poverty
3.5 Card Fraud Statistics
3.5.1 By channel
3.6 Regulatory Framework
3.6.1 Anti Money laundering (AML) and terrorist financing (TF)
4 Emerging Consumer Attitudes and Trends
4.1 Market Segmentation and Targeting
4.1.1 Retail sector
4.1.2 Corporate sector
4.2 Consumer Preference
4.2.1 Price
4.2.2 Service
4.2.3 Convenience
4.3 Online Buying Behavior
4.4 Preferred Payment Methods
5 Competitive Landscape and Industry Dynamics
5.1 Analysis by Payment Channels
5.1.1 Cash
5.1.2 Credit transfers
5.1.3 Direct debits
5.1.4 Card payments
5.1.5 Checks
5.2 Debit Cards Category Share
5.2.1 By bank
5.2.2 By scheme
5.3 Credit Cards Category Share
5.3.1 By bank
5.3.2 By scheme
6 Strategies Adopted by Key Operators
6.1 Marketing Entry Strategies
6.1.1 Case studies
6.2 Marketing and Product Strategies
6.2.1 Credit cards
7 Market Size and Growth Potential of the Payment Card Industry
7.1 Share Analysis by Type of Card
7.2 Total Market Size and Forecast of the Card Industry
7.2.1 Analysis by transaction value
7.2.2 Analysis by transaction volume
7.3 Debit Card Category 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 Category Size and Forecast
7.4.1 Analysis by number of cards by segment
7.4.2 Analysis by transaction value
7.5 Credit Card Category 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
7.5.4 Other key performance indicators
8 Company Profiles, Product, and Marketing Strategies
8.1 Banco de Crédito del Perú (BCP)
8.1.1 Strategies
8.1.2 Credit cards offered
8.2 Banco Financiero
8.2.1 Strategies
8.2.2 Debit card offered
8.2.3 Credit cards offered
8.3 HSBC Bank Peru
8.3.1 Strategies
8.3.2 Credit cards offered
9 Appendix
9.1 Methodology
9.2 Contact Us
9.3 About Timetric
9.4 Disclaimer

List of Tables
Table 1: Peruvian Payment Channels (PEN Million), 2008 and 2012
Table 2: Peruvian Card Volumes by Category (Thousands), 2008–2017
Table 3: Peruvian Cards Industry Volume (Thousands), 2008–2017
Table 4: Peruvian Cards Industry Transaction Value (PEN Million), 2008–2017
Table 5: Peruvian Cards Industry Transaction Value (US$ Million), 2008–2017
Table 6: Peruvian Cards Industry Transaction Volume (Million), 2008–2017
Table 7: Peruvian Debit Card Category Size (Thousands), 2008–2017
Table 8: Peruvian Debit Card Category Size (PEN Million), 2008–2017
Table 9: Peruvian Debit Card Category Size (US$ Million), 2008–2017
Table 10: Peruvian Debit Card Category Size by Transaction Volume (Million), 2008–2017
Table 11: Peruvian Debit Card Category Size by Frequency of Use, 2008–2017
Table 12: Peruvian Prepaid Cards Category Size (Thousands), 2008–2017
Table 13: Peruvian Open-Loop Prepaid Cards Segment Size (Thousands), 2008–2017
Table 14: Peruvian Closed-Loop Prepaid Cards Segment Size (Thousands), 2008–2017
Table 15: Peruvian Prepaid Cards Category Size (PEN Million), 2008–2017
Table 16: Peruvian Prepaid Cards Category Size (US$ Million), 2008–2017
Table 17: Peruvian Credit Card Category Size by Volume (Thousands), 2008–2017
Table 18: Peruvian Credit Card Category Size by Transaction Value (PEN Million), 2008–2017
Table 19: Peruvian Credit Card Category Size by Transaction Value (US$ Million), 2008–2017
Table 20: Peruvian Credit Card Category Size by Transaction Volume (Million), 2008–2017
Table 21: Peruvian Credit Card Category Size by Frequency of Use, 2008–2017
Table 22: Peruvian Credit Card Category Size by Average Transaction Value (PEN), 2008–2017
Table 23: Peruvian Credit Card Category Size by Average Transaction Value (US$), 2008–2017

List of Figures
Figure 1: Current and Future Prospects of Various Cards in Peru
Figure 2: Growth Potential of Peru’s Cards and Payments Industry by Area of Use
Figure 3: Peruvian Cards and Payments Industry Drivers
Figure 4: Peruvian GDP Growth Rate (%), 2008–2017
Figure 5: Urban Employment Growth in Peru (%), 2007–2011
Figure 6: Per Capita Income in Peru (PEN), 2008–2017
Figure 7: Internet Users in Peru (Million), 2008–2012
Figure 8: Number of ATMs in Peru (Thousands), 2008–2017
Figure 9: Number of POS Terminals in Peru (Thousands), 2008–2017
Figure 10: Internet Users Who Buy Online in Peru (%), 2011
Figure 11: Average Number of Hours Spent Online per Month by Internet Users in Peru, 2011
Figure 12: Peruvian Private Consumption Growth (%), 2007–2011
Figure 13: Urban vs Rural Populations in Peru (Million), 2008–2012
Figure 14: Peruvian Total Poverty Growth (%), 2007–2011
Figure 15: Peruvian Card Fraud Statistics (PEN Million), 2008–2012
Figure 16: Objectives of the National Plan to Combat Money Laundering and Terrorist Financing
Figure 17: Consumer Preferences on Various Types of Cards
Figure 18: Share of Payment Options in Peru (%), 2012
Figure 19: Shares of Payment Channels in Peru (%), 2008 And 2012
Figure 20: Value and Growth of Peruvian Cash Transfers (PEN Million), 2008–2012
Figure 20: Value and Growth of Peruvian Credit Transfers (PEN Million), 2008–2012
Figure 21: Value and Growth of Peruvian Direct Debit (PEN Million), 2008–2012
Figure 22: Value and Growth of Peruvian Card Payments (PEN Million), 2008–2012
Figure 23: Value and Growth of Peruvian Check Payments (PEN Million), 2008–2012
Figure 24: Peruvian Debit Card Category Shares by Banks (%), 2011
Figure 25: Peruvian Debit Card Category Shares by Scheme (%), 2011
Figure 26: Peruvian Credit Card Market Shares by Bank (%), 2011
Figure 27: Peruvian Credit Card Market Shares by Scheme (%), 2011
Figure 28: Foreign Banks and Entry Strategies in Peru
Figure 29: Peruvian Card Shares by Category (%), 2008–2017
Figure 30: Peruvian Cards Industry Volume (Thousands), 2008–2017
Figure 31: Peru’s Cards Industry Transaction Value (PEN Million), 2008–2017
Figure 32: Peruvian Cards Industry Transaction Volume (Million), 2008–2017
Figure 33: Peruvian Debit Card Category Size (Thousands), 2008–2017
Figure 34: Peruvian Debit Card Category Size (PEN Million), 2008–2017
Figure 35: Peruvian Debit Card Category Size by Transaction Volume (Million), 2008–2017
Figure 36: Peruvian Debit Card Category Size by Frequency of Use, 2008–2017
Figure 37: Peruvian Debit Card Use at ATMs and POS Terminals (Million), 2008–2017
Figure 38: Peruvian Prepaid Cards Category Size (Thousands), 2008–2017
Figure 39: Peruvian Open-Loop Prepaid Cards Segment (Thousands), 2008–2017
Figure 40: Peruvian Closed-Loop Prepaid Cards Segment Size (Thousands), 2008–2017
Figure 41: Peruvian Prepaid Cards Category Size (PEN Million), 2008–2017
Figure 42: Peruvian Credit Card Category Size by Volume (Thousands), 2008–2017
Figure 43: Peruvian Credit Card Category Size by Transaction Value (PEN Million), 2008–2017
Figure 44: Peruvian Credit Card Category Size by Transaction Volume (Million), 2008–2017
Figure 45: Peruvian Credit Card Category Size by Frequency of Use, 2008–2017
Figure 46: Peruvian Credit Card Category Size by Average Transaction Value (PEN), 2008–2017
Figure 47: Banco de Crédito del Perú – Segmentation of Cards Offered
Figure 48: Banco Financiero – Market Segmentation of Cards Offered
Figure 49: HSBC Bank – Segmentation of Cards Offered
Figure 50: Snapshot of HSBC Bank’s Miles/Points Reward Program