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This report gives a comprehensive overview of the cards, payments and consumer banking market in Brazil, with clearsighted commentary backed by relevant data. We explore the Brazilian payments system covering infrastructure payment preferences, consumer payment trends and the development of online payment systems.
As well as a detailed Brazil credit card report, our experts chart the development of mobile payments, including proximity and P2P payments. Our writers and researchers frame information in contexts such as historical, sectoral and regional trends, adding a layer of value often missing from the rolling news cycle.
The report enables clients to make sound strategic business decisions with the support of detailed historic and forecast market data for Brazil's cards and payments markets.
The largest and most innovative market in Latin America has, relatively swiftly, assembled both a regulatory/infrastructural framework and a critical mass of users. As a fintech boom that has produced over a thousand startups matures, innovation and digitalisation are changing all areas of payments, including the issuer hierarchy. There remains, however, a significant segment that is underserved in terms of financial services.
There is tremendous potential, with almost two-thirds of adult consumers holding a debit card and Pix having proven a world beater in terms of mass market uptake: it is now the second-most preferred payment method. Government stimulus too has been decisive in eroding the size of the unbanked cohort, more or less all of whom now have mobile phones
Competition in merchant acquiring is intense, with market liberalisation spurring a wave of entrants in the last decade. Domestic scheme Elo, launched in 2011, has become the largest debit network but stands third in credit cards with less than a tenth of the market.
Led by Nubank, digital banks have been gaining customers through compelling tech, competitive fees and attractive products. As a result, the market share of traditional credit card issuers shrank by a quarter between 2018 and 2021
Mastercard leads on credit cards, followed by Visa. This cards market has substantial room for growth: 64 percent of adults held debit cards in 2021, accounting for 38 percent of total payment cards purchase volume.
Just over one-third of Brazilian adults have a credit card. The average cardholder has 5.1 cards and made 42 transactions in 2021. Although exorbitant interest rates discourage borrowing by card, this remains a very profitable market with development potential.
TABLE OF CONTENTS
Demographics and the economy
Key retail banks and issuers
Acquiring and processing
Regulatory and other cards market information
Brazil Country Report Data Tables
(All 2016-25F unless otherwise stated)
1: Demographic and economic indicators
2: Ownership of key consumer devices
3: Internet usage by population
4: Access points 2016-23E
5: Account penetration
6: Consumer payment 2016-23E
7: B2C e-commerce payment methods 2016-23E
8: Total cards payment metrics
9: Contactless card metrics
10: Credit card numbers
11: Total credit card metrics
12: Credit card profitability indicators
13: Debit card numbers
14: Debit card metrics
15: Prepaid/e-money card metrics
16: Mobile proximity payment metrics
17: Mobile P2P payments: 2017-25
18: Brazil market profit pool including 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 2016-23F unless otherwise stated)
19: Networks' credit card market shares
20: Networks' credit card 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 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 2018-23F
32: Key issuers market shares in credit card outstandings 2018-23F
33: Key debit card issuers market shares by debit card numbers 2018-23F
34: Merchant acquirer credit card market share 2022E
35: Credit card merchant service charges 2016-25F
36: Merchant acquirer debit card market share: 2022E
37: Debit card merchant service charges
38: Credit card issuer/issuing processor relationships
39: Credit card acquirer/acquiring processor relationships
40: Credit card issuing processor market shares by card numbers 2022E
41: Credit card acquiring processor market shares by the number of POS transactions 2022E
42: Online merchant acquirer market share: 2022E.
Demographics and Economy
The Brazilian economy experienced sluggish growth between 2017 and 2019, followed by a pandemic-inflicted contraction of 3.9% in 2020 and a 4.6% recovery in 2021.
Argus Advisory Research (AAR) estimates that electronic payments value surpassed cash transactions in 2021 and that, by the end of 2022, over 56% of household expenditures will be paid with a card.
Payment cards are relatively well embedded among Brazilian consumers. At the end of 2021, two in every three adults possessed a debit card. A different trend is observed when it comes to credit cards.
Mobile banking is increasingly becoming a key channel for contracting financial products and transactions in Brazil, with a sharp growth in accounts and insurance products.
Despite high interest rates that discourage borrowing via card, Brazil remains a very profitable market with room for further development. Profit before tax was estimated to be near $8.8 billion for 2021.
Visa's market share, as a percentage, has decreased in terms of card numbers over the past few years, as Visa has faced tough competition. Since 2019, Elo has been the largest debit card network for cards in issue and, in 2021, became the largest for billed volume.
Key Retail Banks and Issuers
Over the past six years, digital bank Nubank's sustained growth has changed Brazil's credit card market by becoming the third largest issuer ... only exceeded by Bradesco and Itau Unibanco.
Acquiring and Processing
Cielo and Rede continue to lead the merchant-acquiring market here with about 40% of the total acquired billed volume by the end of 2022. The main non-bank processors in Brazil are Fidelity (previously Certegy), Orbitall, CSU CardSystem and EDS.
Total online acquired purchase volume is set to hit $97 billion in 2022. Credit cards will account for the vast majority of this total: 97%. The adoption rate of IT by Brazilian consumers has been a key driver for this extraordinary growth.
Regulatory and Markets Information
The BCB, major banks, acquirers, Febraban and Abecs have played a key role in improving the efficiency of Brazil's payment systems since 2005. Argus Advisory Research estimates that 60% of total households' purchase value was made using electronic payment channels in 2021.
Associaç£o Brasileira das Empresas de Cartões de Crédito e Serviços
Central do Brasil
Banco Bonsucesso Consignado
Banco Central do Brasil
Banco del Buen Ayre
Banco do Brasil
Banco do Nordeste do Brasil
Banco Nacional de Desenvolvimento Econômico e Social
Banco Nossa Caixa
Blue C Technology
Boa Vista Serviços
Caixa Econômica Federal
Carrefour Soluções Financeiras
Comiss£o de Valores Mobiliários
Confederaç£o Nacional de Dirigentes Lojistas
Conselho Monetário Nacional
Discover Financial Services
Federaç£o Brasileira de Bancos
Fidelity National Information Services
Fidelity Processadora e Serviços
Fundo Garantidor de Crédito
Gestora de Inteligência de Créditos
Instituto Brasileiro de Geografia e Estatística
International Monetary Fund
International Telecommunication Union
Japan Post Bank
LATAM Airlines Brasil
Mercantil do Brasil
Meu Dinheiro Claro Bradesco
Multibank Tim Caixa
Organisation for Economic Co-operation and Development
P£o de Açúcar
Positive Credit Report
Programa de Alimentaç£o do Trabalhador
Santa Catarina Payface
Sumitomo Mitsui Banking Corporation
Argus Advisory Research reports deliver invaluable market and competitor intelligence on payments cards, e-money, acquiring/processing, retail banking, and consumer credit. Analysts and researchers use both primary and secondary source data and conduct in-depth interviews with senior industry executives and local experts.
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