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Peru Cards & Payments Market Report
- Published Date: April 2020
PERU CARDS & PAYMENTS REPORT
A comprehensive overview of the cards, payments and consumer banking market in Peru. Peru's economy has performed strongly in recent years, averaging 3.7 percent growth per annum from 2013 through 2018, with the trend from 2019 to 2022 expected to slow to 2.4 percent. Peru has become a bastion of stability in a troubled continent.
Peru is an emerging economy that remains dominated by cash. Half of all adults do not have an account at a formal financial institution, while only around 43 of adults have a debit card. Debit cards are mostly used to withdraw cash from the ATM.
While debit card purchase volume has increased as a proportion of total billed volume during the past few years, it will be many years before debit cards are primarily used for purchases. The Peruvian e-commerce market has grown significantly over the last several years, reaching an estimated $4.2 billion in 2019. Peru is an emerging cards market that is full of potential. Cards usage is relatively low, but growing strongly.
What you will learn from this Peru cards market report:
Why segmentation is more of a feature than before.
How good governance has been encouraging payments.
Why Peru's financial inclusion policies are increasingly important.
How profitability has been affected by more transactional behaviour.
How e-commerce has blossomed in Peru, to the benefit of issuers.
PERU COUNTRY REPORT | KEY FACTS
- Peru possesses one of the most stable and best-performing economies in Latin America, with low inflation by regional standards. However, the Covid-19 pandemic will negatively impact GDP growth.
- Although more than six million Peruvians remain poor, a strong middle class is emerging.
- Cash is the most popular payment method, but usage has been falling as Peru payments are increasingly digitalised.
- Credit has not only increased in depth – more services to the affluent – but also in breadth, becoming available to large segments of the traditionally unbanked population.
- The number of point-of-sale terminals in Peru has soared in recent years, alongside an increasing number of merchant outlets hosting a banking correspondent agent.
- In this positive economic and banking environment, payment cards have become an ingrained feature of Peru's payment landscape. The number of card purchase transactions has almost trebled since 2013.
- A national e-money platform, BIM, went live in early 2016. However, uptake has disappointed, with fewer than a million users by 2020.
- The Peru merchant acquirer market was deregulated in early 2020: merchants no longer require separate merchant accounts to accept both Visa and Mastercard.
- VisaNet has been rebranded as Niubiz, while Procesos MC is now known as Izipay.
Peru Cards & Payments Research | Report Contents
TABLE OF CONTENTS
Demographics and the economy
Payments environment
Cards market
Mobile payments
Profit pool
Peru networks
Key retail banks and issuers
Acquiring and processing
Online acquiring
Regulatory and other cards market information
Appendices: Card Payments Data
Appendix I: Demographics and the economy
- Demographic and economic indicators
- Ownership of key consumer devices
- Internet usage by population
Appendix II: Payments environment
- Access points
- Account penetration
- Consumer payment trends
- B2C e-commerce payment methods
Appendix III: Cards market
- Total cards payment metrics
- Contactless cards metrics
- Peru credit card data numbers
- Total credit cards metrics
- Credit cards profitability indicators
- Debit cards numbers
- Debit cards metrics
- Prepaid/e-money cards metrics
Appendix IV: Mobile payments
- Mobile money metrics
Appendix V: Profit pool
- Profit pool
Appendix VI: Card networks
- Networks' credit card market shares
- Networks' credit card numbers
- Networks' credit card billed volume
- Networks' number of credit card transactions
- Networks' average credit card transaction value
- Peru credit card interchange fees by network
- Networks' debit card market shares
- Networks' debit card numbers
- Networks' debit card billed volume
- Networks' number of debit card transactions
- Networks' average debit card transaction value
- Peru debit card interchange fees by network
Appendix VII: Key retail banks and issuers
- Key Peru credit card issuers market shares by credit card numbers
- Key issuers market shares in credit card data outstandings
- Key debit card issuers market shares by debit card numbers
Appendix VIII: Acquiring and processing
- Merchant acquirer credit card market share
- Peru credit card merchant service charges
- Merchant acquirer debit card market share
- Debit card merchant service charges
- Credit card issuer/issuing processor relationships
- Credit card acquirer/acquiring processor relationships
- Credit card data – issuing processor market shares by card numbers
- Credit card acquiring processor market shares by number of POS transactions
Appendix IX: Online acquiring
- Online merchant acquirer market share
Peru Country Report | Selected Extracts
Demographics and Economy
Inflation, long a bugbear of Latin American nations, has been tamed in Peru: it averaged 2.9% per annum from 2013 to 2018. Average inflation is forecast to decrease from 2019 to 2022. The country has become a bastion of stability in a troubled continent.
Payments Environment
Peru is an emerging economy that remains dominated by cash. Half of all adults do not have an account at a formal financial institution, while only around 43 of adults have a debit card.
Payment Cards Market
Peru is an emerging cards market that is full of potential. Cards usage is relatively low, but growing strongly, as is card ownership, while consumers have begun to embrace e-commerce.
Mobile Payments
Pagos Digitales Peruanos (Peruvian Digital Payments) is the company responsible for Modelo Peru and its digital wallet, BIM, which operates with a simplified e-money account managed by any financial institution selected by the customer.
Profit Pool
Peru is a profitable market, with the estimated total industry-wide profit in 2019 coming to $387 million, which was broadly unchanged from a year previously.
Card Networks
Visa and Mastercard dominate the market with an estimated 89% of all credit cards in issue at the end of 2019 and 90% in terms of billed volume. Visa and Mastercard are the only two networks operating in the Peruvian debit cards market.
Key Retail Banks and Issuers
Banco Falabella Peru was the leading credit card issuer at the end of 2019, while Banco Credito del Peru was the leading issuer by credit card outstandings and by the number of debit cards. Other key issuers include Scotiabank Peru and its subsidiary Financiera Crediscotia, Banco Ripley, Interbank and BBVA Peru.
Acquiring and Processing
In what marks a significant new departure for the Peruvian payments ecosystem, in addition to market pressure as the various stakeholders wished to increase volumes, exclusivity arrangements came to an end in January 2020.
Online Acquiring
B2C e-commerce billed volumes grew by about 426% between 2013 and 2019. As of December 2019, online acquired billed volume represented an estimated 10% of Peru's total payment card acquired billed volume during 2019.
Regulatory and Markets Information
It is estimated that approximately half of Peruvian adults had access to banking services at the end of 2019, creating a strong opportunity for consumer credit and microcredit business.
Peru Payments Research | Entities Referenced
AFP
Alignet
Amazon
American Airlines
American Express
Asbanc
ASHC
Atlantic Security Holding Corporation
Azteca Perú
BanBif
Banco Cencosud
Banco Central de Reserva del Perú
Banco de Comercio
Banco de Credito de Bolivia
Banco de Credito del Peru
Banco de Credito e Inversiones
Banco de la Nación
Banco del Trabajo
Banco Falabella
Banco GNB
Banco Interamericano de Finanzas
Banco Internacional del Peru
Banco Pichincha Perú
Banco Sudamericano
Banco Wiese Sudameris
BBVA
BBVA Banco Continental
BBVA Perú
BCI
BCP
BCRP
Billetera Móvil
Bim
Bitel
Caja CAT Perú
Caja Piura
Cámara de Compensación Electrónica
Capece
CCE
Cencosud
Cirrus
Citibank
Claro
CMAC Arequipa
CMAC Cusco
CMAC Huancayo
CMAC Ica
CMAC Piura
CMAC Sullana
CMAC Trujillo
Credicorp
Crediscotia Financiera
Diners Club
Edyficar
El Pacífico-Peruano Suiza Compañía de Seguros y Reaseguros
Expressnet
Falabella
Financiera CrediScotia
Financiera Edyficar
Financiera Oh!
Financiera Solucion
Financiera Uno
Globalnet
Glovo
Hiraoka
InkaFarma
Interbank
Intercorp Peru
Izipay
Jockey Plaza
Ligo
Linio
Lumingo
Mastercard
Max
Metro
Mibanco
Modelo Peru
Movistar
Movistar
Entel
Multired
MundoHogar
Niubiz
Open Plaza
Pagos Digitales Peruanos
PayU
PDP
PPS
Presta
Procesos MC
Prosus
Punto.Web
Rappi
Ripley
Ripley Group
Saga Falabella
SBS
Scotiabank
Sodimac
Superintendencia de Banca, Seguros y
Tarjeta Cencosud
Tarjeta La Mágica
Tottus
Uber Eats
Unibanca
Unicard
UNO Financiera Uno
Visa
VisaNet
Vocalink
Yape
MORE LATIN AMERICA CARDS & PAYMENTS REPORTS
Reports deliver invaluable market and competitor intelligence on payments cards, e-money, acquiring/processing, retail banking, and consumer credit in Latin America. Our analysts and researchers use both primary and secondary source data and conduct in-depth interviews with senior Peruvian industry executives and experts.
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