Consumer Finance in Argentina
Euromonitor International's Consumer Finance in Argentina report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
Buy online to access strategic market analysis and an interactive statistical database of value and volume for retail and internet transactions, number of cards in circulation and company brand shares.
Tables: 137 | Publication date: Feb 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Consumer lending; Financial cards and payments
Executive summary
Financial Cards Achieves a New Record in 2008
In 2008, the financial cards market achieved a strong increase in terms of the number of cards in circulation, as well as the total transaction value. The record level of consumption helped to extend the strong performance of the financial card boom the previous year through impressive economic recovery. The extraordinary increase in salaries helped to increase the number of financial card holders, who in turn increased their spending to record levels due to the positive economic outlook.
Credit Cards Remains the Predominant Category
Cards with a credit function reached almost half of financial cards in circulation in 2008. In 2008, demand for credit card products increased in Argentina due to the improvement in economic activity, which made Argentineans become more confident about the state of the economy. Rising demand for credit cards was also attributable to intensive promotional activities by non-banking issuers, which offered credit cards to lower income individual applicants.
Non-banking Players Are Becoming Serious Contenders
After nearly two decades of domination by multinational players, the strength of regional players created an independent segment, forcing them to be proactive. Domestic operators such as Tarjeta Naranja SA, Tarjeta Shopping SA and Tarjeta Nevada SA focused exclusively on geographic expansion to the provinces and the low income segment, where the position of the traditional players was weak. Their strategy was based on lower requirements and a focus on credit card products as a credit tool instead of a payment method, marketed towards individuals with little access to the traditional banking system. Tarjeta Naranja SA is the best example, with the launch of credit lines linked to credit cards, where the customer can get personal credit in a few seconds from an ATM machine.
Innovation Is the Name of the Game
There was an increase in interest in alternative payment solutions in areas which were neglected by traditional financial cards players. As an example, in the micro-payment area, consumers started to adopt new solutions such as Monedero (a general purpose pre-paid card oriented for micro-payments) and m-business solutions from Movistar, oriented to the purchase of movie tickets.
Store Card Issuers Migrate to the Credit Card Arena
Credit card transaction volumes in Argentina were boosted in 2007 by the entry of Frávega SAICF (an electrical goods retail chain) as a credit card issuer for Mastercard and Visa. This trend is likely to be followed by Tarjeta Mas from Cencosud SA, as the company announced its intention to open its merchant acceptance network to third parties.
Inflation Is Becoming a New Problem
The reappearance of high inflation significantly increased financial and credit risk for store and credit card issuers. As a consequence, major players are not only reducing their promotions associated with credit cards, but also increasing the rebates associated with debit card operations (for example, Banco Rio SA offers 20% rebate with their debit cards for purchases in the retailer Carrefour) as a way to reduce risk exposure. Although inflation presents a serious challenge to issuers, it is expected that effective strategies will allow them to continue to take advantage of periods of economic boom throughout the forecast period.
Table of contents
CONSUMER FINANCE IN ARGENTINA : MARKET INSIGHT
EXECUTIVE SUMMARY
Financial Cards Achieves a New Record in 2008
Credit Cards Remains the Predominant Category
Non-banking Players Are Becoming Serious Contenders
Innovation Is the Name of the Game
Store Card Issuers Migrate to the Credit Card Arena
Inflation Is Becoming a New Problem
KEY TRENDS AND DEVELOPMENTS
Private Consumption Achieves a Record High
Demographic Changes Create Consumer Segmentation
New Technology Trends
Women Continue Their March into the Argentinean Workforce
Farmers’ Protests and the Nationalisation of Private Pension Funds Continues to Favour Offshore Financial Cards
MARKET DATA
Table 1 Consumer Payments: Value 2003-2008
Table 2 Financial Cards: Number of Cards in Circulation 2003-2008
Table 3 Financial Cards Transactions: Value 2003-2008
Table 4 Financial Cards: Number of Transactions 2003-2008
Table 5 Financial Cards: Number of Accounts 2003-2008
Table 6 Financial Cards: Number of Cards by Issuer 2003-2007
Table 7 Financial Cards: Number of Cards by Operator 2003-2007
Table 8 Financial Cards: Card Payment Transaction Value by Operator 2003-2007
Table 9 Financial Cards: Card Payment Transactions by Acquirer 2003-2007
Table 10 Consumer Payments Forecast: Value 2008-2013
Table 11 Financial Cards Forecast: Number of Cards in Circulation 2008-2013
Table 12 Financial Cards Forecast: Value 2008-2013
Table 13 Financial Cards Forecast: Number of Transactions 2008-2013
Table 14 Financial Cards Forecast: Number of Accounts 2008-2013
MARKET INDICATORS
Table 15 Number of POS Terminals 2004-2008
Table 16 Number of ATMs 2004-2008
Table 17 Disposable Income 2003-2008
Table 18 Value Lost to Fraud 2003-2008
Table 19 Card Expenditure by Location 2008
Table 20 Card Expenditure by Sector 2008
Table 21 Financial Cards in Circulation by Type: % Number of Cards 2004-2008
Table 22 Domestic versus Foreign Spend 2008
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - ARGENTINA
BANCO DE SERVICIOS FINANCIEROS SA - FINANCIAL CARDS AND PAYMENTS - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Banco de Servicios Financieros SA: Key Facts
Summary 3 Banco de Servicios Financieros SA: Operational Indicators 2005-2007
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 4 Banco de Servicios Financieros SA: Competitive Position 2007
CMR FALABELLA SA - FINANCIAL CARDS AND PAYMENTS - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 CMR Falabella SA: Key Facts
Summary 6 CMR Falabella SA: Operational Indicators 2005-2007
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 7 CMR Falabella SA: Competitive Position 2007
STANDARD BANK ARGENTINA SA - FINANCIAL CARDS AND PAYMENTS - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Standard Bank Argentina SA: Key Facts
Summary 9 Standard Bank Argentina SA: Operational Indicators 2005-2007
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 10 Standard Bank Argentina SA: Competitive Position 2007
TARJETA NARANJA SA - FINANCIAL CARDS AND PAYMENTS - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Tarjeta Naranja SA: Key Facts
Summary 12 Tarjeta Naranja SA: Operational Indicators 2005-2007
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 13 Tarjeta Naranja SA: Competitive Position 2007
TARSHOP SA - FINANCIAL CARDS AND PAYMENTS - ARGENTINA
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Tarshop SA: Key Facts
Summary 15 Tarshop SA: Operational Indicators 2005-2007
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 16 Tarshop SA: Competitive Position 2007
ATM TRANSACTIONS IN ARGENTINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 23 ATM Cards Sector Performance: 2003-2008
Table 24 ATM Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 25 ATM Cards Sector Performance: % Growth 2003-2008
Table 26 ATM Cards in Circulation Sector Performance: % Growth 2003-2008
Table 27 ATM Cards Forecast Sector Performance: 2008-2013
Table 28 ATM Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 29 ATM Cards Forecast Sector Performance: % Growth 2008-2013
Table 30 ATM Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
DEBIT TRANSACTIONS IN ARGENTINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 31 Debit Cards Sector Performance: 2003-2008
Table 32 Debit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 33 Debit Cards Sector Performance: % Growth 2003-2008
Table 34 Debit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 35 Debit Cards: Number of Cards by Issuer 2003-2007
Table 36 Debit Cards: Number of Cards by Operator 2003-2007
Table 37 Debit Cards Transactions by Acquirer 2003-2007
Table 38 Debit Cards Payment Transaction Value by Operator 2003-2007
Table 39 Debit Cards Forecast Sector Performance: 2008-2013
Table 40 Debit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 41 Debit Cards Forecast Sector Performance: % Growth 2008-2013
Table 42 Debit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CREDIT CARD TRANSACTIONS IN ARGENTINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Credit Cards Sector Performance: 2003-2008
Table 44 Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 45 Credit Cards Sector Performance: % Growth 2003-2008
Table 46 Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 47 Personal Credit Cards Sector Performance: 2003-2008
Table 48 Personal Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 49 Personal Credit Cards Sector Performance: % Growth 2003-2008
Table 50 Personal Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 51 Commercial Credit Cards Sector Performance: 2003-2008
Table 52 Commercial Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 53 Commercial Credit Cards Sector Performance: % Growth 2003-2008
Table 54 Commercial Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 55 Credit Cards: Number of Cards by Issuer 2003-2007
Table 56 Credit Cards: Number of Cards by Operator 2003-2007
Table 57 Credit Cards Transactions by Acquirer 2003-2007
Table 58 Credit Cards Payment Transaction Value by Operator 2003-2007
Table 59 Personal Credit Cards Payment Transaction Value by Operator 2003-2007
Table 60 Commercial Credit Cards Payment Transaction Value by Operator 2003-2007
Table 61 Credit Cards Forecast Sector Performance: 2008-2013
Table 62 Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 63 Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 64 Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 65 Personal Credit Cards Forecast Sector Performance: 2008-2013
Table 66 Personal Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 67 Personal Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 68 Personal Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 69 Commercial Credit Cards Forecast Sector Performance: 2008-2013
Table 70 Commercial Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 71 Commercial Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 72 Commercial Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CHARGE CARD TRANSACTIONS IN ARGENTINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 73 Charge Cards Sector Performance: 2003-2008
Table 74 Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 75 Charge Cards Sector Performance: % Growth 2003-2008
Table 76 Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 77 Personal Charge Cards Sector Performance: 2003-2008
Table 78 Personal Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 79 Personal Charge Cards Sector Performance: % Growth 2003-2008
Table 80 Personal Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 81 Commercial Charge Cards Sector Performance: 2003-2008
Table 82 Commercial Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 83 Commercial Charge Cards Sector Performance: % Growth 2003-2008
Table 84 Commercial Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 85 Charge Cards: Number of Cards by Issuer 2003-2007
Table 86 Charge Cards: Number of Cards by Operator 2003-2007
Table 87 Charge Cards Transactions by Acquirer 2003-2007
Table 88 Charge Cards Payment Transaction Value by Operator 2003-2007
Table 89 Personal Charge Cards Transaction Value by Operator 2003-2007
Table 90 Commercial Charge Cards Payment Transaction Value by Operator 2003-2007
Table 91 Charge Cards Forecast Sector Performance: 2008-2013
Table 92 Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 93 Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 94 Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 95 Personal Charge Cards Forecast Sector Performance: 2008-2013
Table 96 Personal Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 97 Personal Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 98 Personal Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 99 Commercial Charge Cards Forecast Sector Performance: 2008-2013
Table 100 Commercial Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 101 Commercial Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 102 Commercial Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
GENERAL PURPOSE PRE-PAID CARD TRANSACTIONS IN ARGENTINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 103 General Purpose Pre-paid Cards Sector Performance: 2003-2008
Table 104 General Purpose Pre-paid Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 105 General Purpose Pre-paid Cards Sector Performance: % Growth 2003-2008
Table 106 General Purpose Pre-paid Cards in Circulation Sector Performance: % Growth 2003-2008
Table 107 General Purpose Pre-paid Cards by Type: % Number of Cards 2004-2008
Table 108 General Purpose Pre-paid Cards: Number of Cards by Operator 2003-2007
Table 109 General Purpose Pre-paid Cards Forecast Sector Performance: 2008-2013
Table 110 General Purpose Pre-paid Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 111 General Purpose Pre-paid Cards Forecast Sector Performance: % Growth 2008-2013
Table 112 General Purpose Pre-paid Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
STORE CARD TRANSACTIONS IN ARGENTINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 113 Store Cards Sector Performance: 2003-2008
Table 114 Store Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 115 Store Cards Sector Performance: % Growth 2003-2008
Table 116 Store Cards in Circulation Sector Performance: % Growth 2003-2008
Table 117 Store Cards: Number of Cards by Issuer 2003-2007
Table 118 Store Cards Forecast Sector Performance: 2008-2013
Table 119 Store Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 120 Store Cards Forecast Sector Performance: % Growth 2008-2013
Table 121 Store Cards in Circulation Forecast Sector Performance: % Growth 2008-2013