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A fully researched survey of the cards, payments and consumer banking market in Mexico, with insightful commentary backed by deep data.
A new regulatory framework around fintechs is intended to expand the reach of electronic payments and chip away further at the unbanked population, which remains high for the region, despite the authorities' ongoing efforts.
New entrants remain well-advised to partner with an incumbent bank and/or the larger fintechs. Still, the pressure from the authorities for change, together with an e-commerce boom and deep smartphone penetration, make market reshaping and opportunity seem inevitable.
Why bank transfers have grown in importance.
Which regulations are proving decisive.
How there is a new opportunity in prepaid.
Why Mexican issuing calls for new creativity.
How profits will fare as the pandemic eases.
TABLE OF CONTENTS
Demographics and the economy
Key retail banks and issuers
Acquiring and processing
Regulatory and other cards market information
Appendices: Payments Data Tables
Appendix I: Demographics and the economy
Data table 1: Demographic and economic indicators: 2014-2020. Estimates and forecasts to 2023.
Data table 2: Ownership of key consumer devices: 2014-2020. Estimates and forecasts to 2023.
Data table 3: Internet usage by population: 2014-2020. Estimates and forecasts to 2023.
Appendix II: Payments environment
Data table 4: Access points: 2014-2020. Estimates and forecasts to 2023. Estimates for 2021.
Data table 5: Account penetration: 2014-2020. Estimates and forecasts to 2023.
Data table 6: Consumer payment trends: 2014-2020. Estimates for 2021.
Data table 7: B2C e-commerce payment methods: 2014-2020. Estimates for 2021.
Appendix III: Cards market
Data table 8: Total cards payment metrics: 2014-2020. Estimates and forecasts to 2023.
Data table 9: Contactless cards metrics: 2018-2020. Estimates and forecasts to 2023.
Data table 10: Credit card numbers: 2014-2020. Estimates and forecasts to 2023.
Data table 11: Total credit cards metrics: 2014-2020. Estimates and forecasts to 2023.
Data table 12: Credit cards profitability indicators: 2014-2020. Estimates and forecasts to 2023.
Data table 13: Debit cards numbers: 2014-2020. Estimates and forecasts to 2023.
Data table 14: Debit cards metrics: 2014-2020. Estimates and forecasts to 2023.
Appendix IV: Mobile payments
Data table 15: Mobile proximity payment metrics: 2018-2020. Estimates and forecasts to 2023.
Data table 16: Mobile P2P payments: 2017-2020. Estimates and forecasts to 2023.
Appendix V: Profit pool
Data table 17: Profit pool: 2014-2020. Estimates and forecasts to 2023 inc. credit card numbers, billed volumes, oustandings, 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).
Appendix VI: Card networks
Data table 18: Networks' credit card market shares: 2014-2020. Estimates for 2021.
Data table 19: Networks' credit card data numbers: 2014-2020. Estimates for 2021.
Data table 20: Networks' credit card billed volume: 2014-2020. Estimates for 2021.
Data table 21: Networks' number of credit card transactions: 2014-2020. Estimates for 2021.
Data table 22: Networks' average credit card transaction value: 2014-2020. Estimates for 2021.
Data table 23: Credit card interchange fees by network: 2014-2020. Estimates for 2021.
Data table 24: Networks' debit card market shares: 2014-2020. Estimates for 2021.
Data table 25: Networks' debit card data numbers: 2014-2020. Estimates for 2021.
Data table 26: Networks' debit card billed volume: 2015-2020. Estimates and forecasts to 2022.
Data table 27: Networks' number of debit card transactions: 2014-2020. Estimates for 2021.
Data table 28: Networks' average debit card transaction value: 2014-2020. Estimates for 2021.
Data table 29: Debit card interchange fees by network: 2014-2020. Estimates for 2021.
Appendix VI1: Key retail banks and issuers
Data table 30: Key credit card issuers market shares by credit card numbers: 2016-2020. Estimates for 2021.
Data table 31: Key issuers market shares in credit card outstandings: 2016-2020. Estimates for 2021.
Data table 32: Key debit card issuers market shares by debit card numbers: 2016-2020. Estimates for 2021.
Appendix VIII: Acquirers and processing
Data table 33: Merchant acquirer credit card market share: Estimates for 2021.
Data table 34: Credit card merchant service charges: 2014-2020. Estimates and forecasts to 2023.
Data table 35: Merchant acquirer debit card market share: Estimates for 2021.
Data table 36: Debit card merchant service charges: 2014-2020. Estimates and forecasts to 2023.
Data table 37: Credit card issuer/issuing processor relationships.
Data table 38: Credit card acquirer/acquiring processor relationships.
Data table 39: Credit card issuing processor market shares by card numbers: Estimates for 2021.
Data table 40: Credit card acquiring processor market shares by the number of POS transactions: Estimates for 2021.
Appendix IX: Online acquiring
Data table 41: Online merchant acquirer market share. Estimates for 2021.
Demographics and Economy
There are an estimated 36 million households in the country, with an average monthly income of $1,012. Most low-income families operate outside the formal banking system because the relevant services and payments infrastructure are unavailable in the areas where this segment live or transact.
During 2020, bank transfers and direct debit represented about 18% of total consumer payment value, of which consumer bank transfers accounted for 81%.
Payment Cards Market
Payment cards in Mexico have grown significantly to reach, as of December 2020, 185 million cards in issue, with 14.9% being credit cards. These cards are issued by 107 institutions, of which 34 are banks.
In June 2020, Citibanamex included in Transfer the option to open a digital account to deliver services during the pandemic. Under this service, new customers may open a Transfer digital account after downloading the app, entering basic data, uploading a national identity document photo and selecting a PIN.
With 24% growth in outstandings between 2014 and 2020, credit cards have been one of the most dynamic areas of consumer credit in Mexico; however, outstandings decreased by 9.6% during 2020 due to Covid-19 impacts.
Mexico is positioned as one of the most appealing emerging markets for credit cards growth, given its size, growing middle class, robust financial system, consumer preference for using cash and the relative maturity of the electronic payments network. Debit cards as a payment instrument have been growing in popularity, but still, 72% of the total billed volume were ATM withdrawals in 2020.
Key Retail Banks and Issuers
The six largest issuers in terms of the number of credit cards in Mexico are Citibanamex, BBVA, BanCoppel, Santander, Inbursa and Banorte. Together they accounted for, at the end of 2020, 86% of credit cards in issue and 88% of credit card outstandings.
Acquiring and Processing
As of 2020, there were 19 bank acquirers, two non-bank acquirers and more than 35 aggregators participating in the market. E-Global (Servicios Electrónicos Globales) is the largest processor and is owned by BBVA and Citibanamex. Prosa (Promocion y Operacion), a large card processor and e-payments switch service provider, is the main competitor to E-Global in Mexico.
E-commerce has grown in importance in Mexico over the last several years. This has been driven by the increased availability of the internet, available to 73% of the population, or nearly 94 million people, as of the end of 2020.
Regulatory and Markets Information
To unlock the benefits commensurate with an appropriately modernised banking and payment system, over the years, the authorities have been reducing transaction costs, issuing new banking licences and encouraging the introduction of innovative products and financial instruments, as well as working to improve product and service transparency.
Asociación Mexicana de Internet
Banca Preferente Banorte
Banco de Comercio
Banco de Mexico
Banco Nacional de Mexico
Bank of America
Blue Label Mexico
Blue Label Telecoms
Buro de Credito
Circulo de Credito
Comision Nacional Bancaria y de Valores
Comisión Nacional para la Protección y Defensa de los Usuarios de Servicios Financieros
Farmacias del Ahorro
FIFA World Cup
Grupo Financiero Citibanamex-Accival
Instituto Nacional de Estadística y Geografía
International Telecommunication Union
Los 40 Principales
Promocion y Operacion
Rayados de Monterrey
Santander Central Hispano
Santander Merchant Platform Solutions
Servicios Electrónicos Globales
Sociedades Financieras de Objeto Multiple
Universidad Nacional Autónoma de Mexico
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