Financial Cards in Mexico
Euromonitor International's Financial Cards in Mexico 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: 105 | Publication date: Mar 2008
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- 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
Regulating credit and debit card banking fees
In 2007, the Federal Government replaced the Law of Transparency and Regulation of Financial Services of 2004, with new legislation. The Central Bank of Mexico (Banxico) is allowed to regulate interest rates and bank fees as well as the credit granted, in order to guarantee the efficiency of the payments system and protect the public interest. The new reforms allow Banxico and other institutions, such as CONDUSEF, CNBV and Secretaria de Hacienda, to evaluate the competitive market conditions and determine the cost of loans. For the first time the Bank will define the CAT (Total Annual Cost) of credits, loans and lending. The reform will have its greatest impact in terms of fees reduction and interest rates, pushing for more competitiveness and pressing the banks to reduce their interest rates.
Smart cards gaining traction
Smart cards in Mexico have not met expectations in terms of the swift implementation expected by many in the industry, with many planning on Mexican card holders making purchases exclusively with this type of card in 2007. With insufficient support from POS technology, the adoption of smart cards slowed down and fell far short of expectations. Nevertheless, adoption is continuing, and growth in smart cards was strong in 2006 and 2007 as a result of the explosion of transportation cards for the Metro system in Mexico. Security issues continue to make migration to smart cards highly attractive, and delays in the adoption of technology have given companies in Mexico the opportunity to leapfrog to newer technology. As a result, it is expected that advanced smart card technology will become common in Mexico over the forecast period.
Unbanked population offers huge room for growth
The increasing banked population in Mexico poses a great challenge to the banking system, whereas great potential for growth has been earmarked in medium to low income segments. A large percentage of the population in Mexico lacks a bank account, and these segments are targeted, allowing easy access to financial products. Although there is great opportunity to target unbanked consumers, this situation poses risks to the overdue portfolio, as seen in 2006 and 2007, as the level of bad loans continues to increase.
Mexican banking system still shows concentration, despite the entry of new
banks
Although the financial system is diverse, it is still dominated by large foreign-owned financial conglomerates, where concentration characterises commercial banking. Mexican banking continues to show a great degree of concentration, despite the operation of several banks in the country. The three largest banks account for close to 65% of banking assets and a high degree of foreign ownership in 2006. This concentration reduces competition, which is why many banks have been authorised to operate; in 2006 the SHCP (Secretaria de Hacienda y Crédito Público, Ministry of Finance and Public Credit) authorised the operation of 13 new banks, reflecting government attempts to increase competition in banking. However, there are still many steps to be taken in order to promote competition, such as consumer mobility, relaxing entry barriers and levelling the playing field for banks.
Remittances continue to be a strong driver of internal consumption
The total value of remittances in 2006 was MX$23 billion pesos, 15% more than in 2005. Remittances continue to be a driver for domestic consumption and support for Mexican economic activities. Overall, remittances will increase demand for pre-paid remittance cards, as many banks operating in the US transfer money to Mexico using pre-paid cards. Additionally, they are propping up the economy and encouraging the continuation of high consumption growth.
Table of contents
FINANCIAL CARDS IN MEXICO : MARKET INSIGHT
EXECUTIVE SUMMARY
Regulating credit and debit card banking fees
Smart cards gaining traction
Unbanked population offers huge room for growth
Mexican banking system still shows concentration, despite the entry of new
banks
Remittances continue to be a strong driver of internal consumption
KEY TRENDS AND DEVELOPMENTS
Positive economic environment continues to maintain stability
New technology trends
Banking competition arrives
New consumer segments provide new opportunities
Overdue portfolio is reaching a risky point
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 - MEXICO
BANCO AHORRO FAMSA - FINANCIAL CARDS - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Banco Ahorro FAMSA: Key Facts
Summary 3 Banco Ahorro FAMSA: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
BANCO AZTECA SA - FINANCIAL CARDS - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Banco Azteca: Key Facts
Summary 5 Banco Azteca: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
BANCO MERCANTIL DEL NORTE (BANORTE) - FINANCIAL CARDS - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Banorte: Key Facts
Summary 7 Banorte: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
BANCO WAL-MART DE MéXICO ADELANTE SA - FINANCIAL CARDS - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Banco Wal-Mart de México Adelante: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
PROMOCION Y OPERACION SA DE CV (PROSA) - FINANCIAL CARDS - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Promoción y Operación SA de CV (PROSA): Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SMART CARDS IN MEXICO
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 MEXICO
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 MEXICO
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 MEXICO
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 MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 62 Charge Cards Sector Performance: 2002-2007
Table 63 Charge Cards Sector Performance: % Growth 2002-2007
Table 64 Personal Charge Cards Sector Performance: 2002-2007
Table 65 Personal Charge Cards Sector Performance: % Growth 2002-2007
Table 66 Corporate Charge Cards: Sector Performance: 2002-2007
Table 67 Corporate Charge Cards: Sector Performance: % Growth 2002-2007
Table 68 Charge Cards: Number of Cards by Issuer 2002-2006
Table 69 Charge Cards: Number of cards by Operator 2002-2006
Table 70 Charge Cards Transactions by Acquirer 2002-2006
Table 71 Charge Cards Transaction Value by Operator 2002-2006
Table 72 Personal Charge Cards Transactions by Acquirer 2002-2006
Table 73 Personal Charge Cards Transaction Value by Operator 2002-2006
Table 74 Corporate Charge Cards Transactions by Acquirer 2002-2006
Table 75 Corporate Charge Cards Transaction Value by Operator 2002-2006
Table 76 Charge Cards: Forecast Sector Performance: 2007-2012
Table 77 Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 78 Personal Charge Cards: Forecast Sector Performance: 2007-2012
Table 79 Personal Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 80 Corporate Charge Cards: Forecast Sector Performance: 2007-2012
Table 81 Corporate Charge Cards: Forecast Sector Performance: % Growth 2007-2012
PRE-PAID CARD TRANSACTIONS IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 82 Pre-paid Cards Sector Performance: 2002-2007
Table 83 Pre-paid Cards Sector Performance: % Growth 2002-2007
Table 84 Pre-paid Cards: Number of Cards by Issuer 2002-2006
Table 85 Pre-paid Cards: Number of cards by Operator 2002-2006
Table 86 Pre-paid Cards Transactions by Acquirer 2002-2006
Table 87 Pre-paid Cards Transaction Value by Operator 2002-2006
Table 88 Pre-paid Cards by Type 2004-2007
Table 89 Pre-paid Cards: Forecast Sector Performance: 2007-2012
Table 90 Pre-paid Cards: Forecast Sector Performance: % Growth 2007-2012
STORE CARD TRANSACTIONS IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 91 Store Cards Sector Performance: 2002-2007
Table 92 Store Cards Sector Performance: % Growth 2002-2007
Table 93 Store Cards: Number of Cards by Issuer 2002-2006
Table 94 Store Cards Transactions by Acquirer 2002-2006
Table 95 Store Cards: Forecast Sector Performance: 2007-2012
Table 96 Store Cards: Forecast Sector Performance: % Growth 2007-2012