Based on Gross Dollar Volume (GDV) debit cards hold a 64.6% share in the Brazilian payment card market while credit cards had 35.4% share.
According to P&S Market Research’s Brazil Cards and Payments Market – Size, Share, Development, Growth and Forecast to 2020, the debit cards dominant share is likely to remain stable through 2020.
Brazil’s GDP per capita increased from BRL 23,655.1 in 2012 to BRL 27,229.3 in 2014. The GDP per capita is likely to increase further over the period 2015-2020, to reach BRL 39,204.2 by 2020. This increase is expected to increase the cards usage over the forecast period.
In terms of transaction volume, the debit cards had 64.6% share in the Brazilian payment card market in 2014.
The total number of credit cards in Brazil increased at a CAGR of 12.4% during the period 2012-2014. There was intense competition among credit card issuers to encourage card usage and spend. Credit card issuing banks implement various marketing strategic and offered numerous offers and campaigns to attract consumers.
The charge cards segment represents a small portion of the Brazilian pay later card market but is expected to gain momentum due to expected growth in the volume of high net worth individuals (HNIs) during the period 2015-2020. The frequency of charge card use declined at a CAGR of -1.4% during 2012-2014. The frequency of transaction is expected to fall to 4.2 times by 2020.
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