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A detailed and comprehensive report on the card payments and consumer banking market in Spain with clearsighted commentary backed by detailed market data.
The rapid acceptance of contactless payments and P2P transfers sets Spain apart as a payments market to watch. The population is enthusiastic about these methods, which have grown considerably in recent years, especially in 2020, which saw the market hit an inflexion point for declining cash usage. Further bank mergers are likely in the coming years, with the launch of a new national card brand certain once the public health situation has stabilised.
How a significant opportunity has arisen as habits change.
What banking reform has meant to payments in Spain.
Which players are availing of BNPL demand.
Why deferred debit has grown.
How issuers in Spain have adjusted their approach since 2014.
TABLE OF CONTENTS
Demographics and the economy
Spanish cards market data
Key retail banks and issuers
Acquiring and processing
Regulatory and other cards market information
Spain Country Report Data Tables
(All 2014-23F unless otherwise stated)
1: Demographic and economic indicators.
2: Ownership of key consumer devices.
3: Internet usage by population.
4: Access points: 2014-21F.
5: Account penetration.
6: Consumer payment trends: 2014-21F.
7: B2C e-commerce payment methods: 2014-21F.
8: Total card payment metrics.
9: Contactless card metrics.
10: Credit card numbers.
11: Total credit cards metrics.
12: Credit card profitability indicators.
13: Debit card numbers.
14: Debit card metrics.
15: Prepaid/e-money cards metrics.
16: Mobile proximity payment metrics: 2015-23F
17 Mobile P2P payments: 2016-23F
18: Profit pool: credit card numbers, billed volumes, outstandings, interest incomes, net interest revenues, merchant revenues, card fee revenues, other non-interest incomes, total revenues, net credit losses, operating expenses, total expenses, pre-tax profits, merchant service charges, rollover rates, APR, net credit losses to outstandings, operating costs to revenues, ROA (pre-tax profits to outstandings).
(All below 2014-21F unless otherwise stated)
19: Networks' credit card market shares.
20: Networks' credit card data numbers.
21: Networks' credit card billed volume.
22: Networks' number of credit card transactions.
23: Networks' average credit card transaction value.
24: Credit card interchange fees by network.
25: Networks' debit card market shares.
26: Networks' debit card data numbers.
27: Networks' debit card billed volume.
28: Networks' number of debit card transactions.
29: Networks' average debit card transaction value.
30: Debit card interchange fees by network.
31: Key credit card issuers market shares by credit card numbers: 2016-21F.
32: Key issuers market shares in credit card outstandings: 2016-21F.
33: Key debit card issuers market shares by debit card numbers: 2016-21F.
34: Merchant acquirer credit card market share: 2020E.
35: Credit card merchant service charges: 2014-23F.
36: Merchant acquirer debit card market share: 2020E.
37: Debit card merchant service charges: 2014-23F.
38: Credit card issuer/issuing processor relationships: -
39: Credit card acquirer/acquiring processor relationships: -
40: Credit card issuing processor market shares by card numbers: 2020E.
41: Credit card acquiring processor market shares by the number of POS transactions: 2020E.
42: Online merchant acquirer market share: 2020E.
Demographics and Economy
After a sharp reversal of economic prosperity in 2008, growth returned in 2014 because of structural reforms to improve competitiveness and attractiveness for foreign investors. Average GDP growth reached 2.6% between 2014 and 2019, although it decreased by about 9% during 2020 due to the pandemic
During 2020, the total value of payment cards purchases continued to gain share relative to ATM cash withdrawals, representing 67% of the total value of card billed volume. The cash ratio has been in decline since 2014, and it will almost certainly continue to do so ... as Covid-19 continues to impact behaviour.
Payment cards are relatively well embedded among Spanish consumers, with 88% of adults holding a debit card and 55% a credit card. However, Spanish issuers have long tended not to make a clear distinction between the two, viewing cards as payment instruments or cash substitutes.
The most important development in mobile payments has been the launch of Bizum in October 2016: this mobile transfer and payments app, owned by 25 banks, is primarily used to carry out person-to-person transfers.
Between 2014 and 2019, credit card outstandings grew 47%, with a stable average rollover rate of 65%. During 2020, credit card outstandings decreased by 7.4% due to the effect of the pandemic on consumer spending.
Visa leads the Spanish credit cards € market in terms of both billed volume and number of cards in issue. Mastercard is a secondary player in the market. From 2014 to 2020, the total debit card billed volume grew by 78%, demonstrating the popularity of debit cards.
Key Retail Banks and Issuers
The Spanish credit cards market is competitive, with the leading banks competing with a small number of specialist consumer finance and credit cards specialists. Between 2016 and 2020, the top five issuers market share grew from 72% of total card outstandings to 75%.
Acquiring and Processing
With approximately 2.06 million POS terminals at the end of 2020, Spain has one of the largest acquiring networks in Europe. At 5,110 terminals per 100,000 adults, the country is above the EU average in terms of POS density.
Total online acquired purchase volume came to $33.7 billion in 2020, an increase of 43% over 2018. Debit cards are more popular than credit cards when paying for online purchases.
Regulatory and Markets Information
To offer financial services here it is necessary to have a banking authorisation or licence. Fintechs are no exception: to operate they need an electronic money (EDE) licence or to establish a partnership with an EDE.
Asociación Española de Banca
Banco Bilbao Vizcaya Argentaria
Banco de España
Banco de Valencia
Banco GNB Paraguay
Banco Hispano Americano
Banco Portugués do Investimento
Bank of America
Bank of Spain
Bankinter Consumer Finance
Bip & Drive
Caja Laboral Popular
Comercia Global Payments
Comisión Nacional de los Mercados y la Competencia
El Corte Inglés
Español de Crédito
Fondo de Reestructuración Ordenada Bancaria
Global Payment Moneytopay
Grupo Caja Rural
Madrid City Council
Madrid Trade Confederation
Metro de Sevilla
Orderly Banking Restructuring Fund
PNC Financial Services Group
Redes y Procesos
San Miguel Market
Sistema de Tarjetas y Medios de Pago
Sistema Nacional de Compensación Electrónica
Sociedad Española de Sistemas de Pago
Spanish Confederation of Savings Banks
Reports include detailed market and competitor intelligence on payments cards, e-money, acquiring, retail banking, and consumer credit in Europe. Analysts use primary and secondary source data and conduct in-depth interviews with senior industry executives and finance experts.
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