Financial Cards in Chile
Euromonitor International's Financial Cards in Chile 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.
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Tables: 86 | Publication date: Mar 2008
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
Financial cards in circulation; Transactions
Executive summary
Healthy Economy Remains Key Factor in Financial Card Growth
The Chilean economy delivered positive indicators on GDP growth, unemployment and interest rates in 2006 and 2007. Exports also increased. As a result, consumer credit continued to spread and brought growth to most categories of financial cards. Lower unemployment rates caused Chileans to save less and increase consumption. During the latter review years, growth in the use of plastic cards replaced the use of paper cheques. Chileans eagerly accepted the benefits of card use, and enjoyed new technological advances as well as exclusive card offers and promotions.
Growth of Credit Cards Is Provoked by Store Card Shift
The fast growth of credit cards during 2007 was the result of store cards shifting to credit cards. Store cards were widely accepted by all types of merchants, and regulation changes introduced by the SBIF definitely drew the new roadmap. Major store cards became credit cards, and were thus confined to the same regulations as banks and traditional brand credit cards. Consumers were then able to enjoy lower interest rates and increased transparency by using credit cards.
Bip Card Introduction Changes Pre-paid Card Potential
Pre-paid cards was the second fastest growing area of financial cards in 2007. It showed outstanding performance. Most of this growth came from the Bip card launch made by the new transportation system – Transantiago. This new card spread the pre-paid contactless smart card system throughout the capital. It was widely accepted by consumers, and an increased number of consumers preferred the convenience of pre-paid cards. It helped with tasks in their everyday lives, and leveraged contactless payment capabilities to maximise convenience.
Debit Cards Consolidates in Chile
Consumers widely accepted the use of debit cards, and growth in the number of transactions showed a major increase in frequency of use during 2007. Debit card growth was definitely motivated by an intensive distribution of POS terminals to all types of merchants. Customer acceptance was also due to increased security, as a transaction required a PIN number for acceptance. Biometric systems opened new perspectives for the financial card business.
New biometric systems introduced by Falabella were highly accepted, and consumers felt increased security. Crime sophistication led companies to search for new systems to block criminals. The introduction of fingerprint recognition on Falabella ATMs increased security standards. As a result, Redbanc announced that it would incorporate a biometric system in its ATM machines. This could completely change the competitive landscape to newer and more reliable systems to protect consumers from fraud.
Financial Cards Matures
Financial cards in Chile was relatively developed in 2007, and was second only to Brazil in terms of cards per capita. As a result, companies have currently begun to look for ways to tap into new categories in order to grow. While the approach of saturation has partially caused a spate of mergers on the one hand, it has also sent companies searching for value-added deals, such as airline miles. In addition, companies are trying to attract groups that have not been aggressively targeted previously, such as university students and low-income consumers.
Table of contents
FINANCIAL CARDS IN CHILE : MARKET INSIGHT
EXECUTIVE SUMMARY
Healthy Economy Remains Key Factor in Financial Card Growth
Growth of Credit Cards Is Provoked by Store Card Shift
Bip Card Introduction Changes Pre-paid Card Potential
Debit Cards Consolidates in Chile
Financial Cards Matures
KEY TRENDS AND DEVELOPMENTS
Growing Economy Retains Optimism in Credit System
Competitive Marketplace Changing With New Mergers
Banks Prepared to Serve Un-banked Population
Companies Reach New Target Groups
Tourism Growth Positively Impacts Financial Cards
OPERATING ENVIRONMENT
Consumer Credit and Lending
Issuer Fraud
Acquirer Fraud
E-commerce
M-commerce
ATM and POS Terminals
Cash Withdrawal vs Card Purchase
Governmental Regulation and Legislation
MARKET INDICATORS
Table 1 Number of POS Terminals 2004-2007
Table 2 Number of ATMs 2004-2007
Table 3 Disposable Income 2002-2007
Table 4 Consumer Credit 2002-2007
Table 5 Value Lost to Fraud 2002-2007
MARKET DATA
Table 6 Financial Cards: Transactions 2002-2007
Table 7 Financial Cards: Value 2002-2007
Table 8 Financial Cards: Number of Cards in Circulation 2002-2007
Table 9 Financial Cards: Number of Accounts 2002-2007
Table 10 Domestic versus Foreign Spend 2007
Table 11 Card Expenditure by Sector 2007
Table 12 Card Expenditure by Location 2007
Table 13 Financial Cards: Number of Internet Transactions 2002-2007
Table 14 Financial Cards: Internet Transaction Value 2002-2007
Table 15 Financial Cards: Number of Cards by Issuer 2002-2006
Table 16 Financial Cards: Number of Cards by Operator 2002-2006
Table 17 Financial Cards: Point of Sale Transactions by Acquirer 2002-2006
Table 18 Financial Cards Forecast: Transactions 2007-2012
Table 19 Financial Cards Forecast: Value 2007-2012
Table 20 Financial Cards Forecast: Number of Cards in Circulation 2007-2012
Table 21 Financial Cards: Forecast Number of Accounts 2007-2012
Table 22 Financial Cards Forecast: Number of Internet Transactions 2007-2012
Table 23 Financial Cards Forecast: Internet Transaction Value 2007-2012
DEFINITIONS
Cards by Type
Cardholder Behaviour
Card Expenditure by Sector
Value Lost to Card Fraud
Consumer Credit
Market Background
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - CHILE
BANCO CREDITO INVERSIONES - FINANCIAL CARDS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Banco de Crédito e Inversiones (BCI): Key Facts
Summary 3 Banco de Crédito e Inversiones (BCI): Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
BANCO SANTANDER CHILE - FINANCIAL CARDS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Banco Santander Chile: Key Facts
Summary 5 Banco Santander Chile: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
D&S SA - FINANCIAL CARDS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Distribución y Servicio D&S SA: Key Facts
Summary 7 Distribución y Servicio D&S SA: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
FALABELLA SACI - FINANCIAL CARDS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 8 SACI Falabella: Key Facts
Summary 9 SACI Falabella: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
REDBANC SA - FINANCIAL CARDS - CHILE
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Redbanc SA: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SMART CARDS IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 24 Smart Cards Sector Performance: 2002-2007
Table 25 Smart Cards Sector Performance: % Growth 2002-2007
Table 26 Smart Cards: Memory vs Microprocessor 2004-2007
Table 27 Smart Cards: Contact vs Contactless 2004-2007
Table 28 Smart Cards: Forecast Sector Performance: 2007-2012
Table 29 Smart Cards: Forecast Sector Performance: % Growth 2007-2012
ATM TRANSACTIONS IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 30 ATM Cards Sector Performance: 2002-2007
Table 31 ATM Cards Sector Performance: % Growth 2002-2007
Table 32 ATM Cards: Forecast Sector Performance: 2007-2012
Table 33 ATM Cards: Forecast Sector Performance: % Growth 2007-2012
DEBIT TRANSACTIONS IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 34 Debit Cards Sector Performance: 2002-2007
Table 35 Debit Cards Sector Performance: % Growth 2002-2007
Table 36 Debit Cards: Number of Cards by Issuer 2002-2006
Table 37 Debit Cards: Number of Cards by Operator 2002-2006
Table 38 Debit Cards Transactions by Acquirer 2002-2006
Table 39 Debit Cards Transaction Value by Operator 2002-2006
Table 40 Debit Cards: Forecast Sector Performance: 2007-2012
Table 41 Debit Cards: Forecast Sector Performance: % Growth 2007-2012
CREDIT CARD TRANSACTIONS IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 42 Credit Cards Sector Performance: 2002-2007
Table 43 Credit Cards Sector Performance: % Growth 2002-2007
Table 44 Personal Credit Cards Sector Performance: 2002-2007
Table 45 Personal Credit Cards Sector Performance: % Growth 2002-2007
Table 46 Corporate Credit Cards: Sector Performance: 2002-2007
Table 47 Corporate Credit Cards: Sector Performance: % Growth 2002-2007
Table 48 Credit Cards: Number of Cards by Issuer 2002-2006
Table 49 Credit Cards: Number of Cards by Operator 2002-2006
Table 50 Credit Cards Transactions by Acquirer 2002-2006
Table 51 Credit Cards Transaction Value by Operator 2002-2006
Table 52 Personal Credit Cards Transactions by Acquirer 2002-2006
Table 53 Personal Credit Cards Transaction Value by Operator 2002-2006
Table 54 Corporate Credit Cards Transactions by Acquirer 2002-2006
Table 55 Corporate Credit Cards Transaction Value by Operator 2002-2006
Table 56 Credit Cards: Forecast Sector Performance: 2007-2012
Table 57 Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 58 Personal Credit Cards: Forecast Sector Performance: 2007-2012
Table 59 Personal Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 60 Corporate Credit Cards: Forecast Sector Performance: 2007-2012
Table 61 Corporate Credit Cards: Forecast Sector Performance: % Growth 2007-2012
CHARGE CARD TRANSACTIONS IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
PRE-PAID CARD TRANSACTIONS IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 62 Pre-paid Cards Sector Performance: 2002-2007
Table 63 Pre-paid Cards Sector Performance: % Growth 2002-2007
Table 64 Pre-paid Cards: Number of Cards by Issuer 2002-2006
Table 65 Pre-paid Cards: Number of Cards by Operator 2002-2006
Table 66 Pre-paid Cards Transactions by Acquirer 2002-2006
Table 67 Pre-paid Cards Transaction Value by Operator 2002-2006
Table 68 Pre-paid Cards by Type 2004-2007
Table 69 Pre-paid Cards: Forecast Sector Performance: 2007-2012
Table 70 Pre-paid Cards: Forecast Sector Performance: % Growth 2007-2012
STORE CARD TRANSACTIONS IN CHILE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 71 Store Cards Sector Performance: 2002-2007
Table 72 Store Cards Sector Performance: % Growth 2002-2007
Table 73 Store Cards: Number of Cards by Issuer 2002-2006
Table 74 Store Cards Transactions by Acquirer 2002-2006
Table 75 Store Cards: Forecast Sector Performance: 2007-2012
Table 76 Store Cards: Forecast Sector Performance: % Growth 2007-2012