Large numbers of emerging markets, including some among the BRIC and CIVETS economies, remain untouched by traditional financial services. These markets will provide ample opportunities for card operators and issuers willing to conduct business in these new frontier markets for card payment
Although the global card market remained dominated in 2012 by developed markets, the fastest growth is coming from emerging markets, namely the countries that make up the BRIC and CIVETS economies.
In general, the BRIC economies tend to spend more on debit cards than credit cards. The opposite is true among the CIVETS economies, where credit is the preferred card type.
Consumer expenditure continues to grow robustly across many emerging markets. As incomes rise, households have more to spend on non-necessities, which could equate to higher card spend.
Income inequality in emerging markets is higher than in developed markets due to greater disparities between regions, genders, ethnicities and education, and a lack of adequate government policy and resources to help the poor.
In emerging markets, the mobile phone has the potential to become a lifeline for rural and low-income urban consumers with no connection to the financial mainstream, whereas the mobile phone in developed markets is more about increased consumer convenience.
The four BRIC markets are predicted to account for 44% of total card payment volume added worldwide over the 2012-2017 period.
Financial literacy efforts among unbanked consumers will become increasingly important, as this will provide financial institutions with new customers. Governments have employed a variety of strategies, which rely on both private and public resources, in order to increase financial literacy.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page