Pulished Date August, 2019
ID: 7501
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Debit Cards Segment Primarily Driving The Cards And Payments Of Mexico

Pulished: August, 2019
ID: 7501
Pages: 85

An overview of the cards and payments market of Mexico

According to our recently published research report, the cards and payments market in Mexico is being primarily driven by the category of debit cards which has also posted the highest growth rate during the forecast period.

Prepaid card segment is expected to be boosted owing to spending on the basis of credit

The segment of prepaid cards is expected to post a robust growth rate during the forecast period and is being driven by the welfare cards offered by the government, payroll cards, transport cards and gift cards. The collaboration with mobile service providers such as Rev worldwide, the Banorte bank has released a reloadable card for general purposes named as MiFon. Such developments are expected to augment the growth of this segment during the forecast period. The Mexican population is increasingly tending to shift their expenditure on the basis of their disposable incomes, which is expected to consequently provide a boost for the growth of the prepaid cards segment as it provides customers the ability to limit their spending.

Increase in remittance payments expected to augment market growth

The influx of remittances is projected to aid in the expansion of the cards and payments market of Mexico. There is a majority of remittances from the US to Mexico, and the increase in the number of immigration restrictions has decreased this value of remittances, which is however expected to increase the number of Mexican immigrants aided by the economy in the US. MasterCard, American Express, and Visa launched branded remittance cards have all the qualities of a general purpose debit or credit card and are quite popular in Mexico. MoneyGram is one of the new schemes which have been launched to aid the flow of remittances between Mexico and the US.

The segment of prepaid cards being supported by the flexible terms and low prices

Low pricing structures are being employed by Mexican banks in order to promote products of prepaid cards. The majority of banks are also not charging any card replacement fees or annual fees, with no charges for cash withdrawals and balance inquiries at ATMs. Only the international payments via these cards are increasingly being charged. Such strategies are being used to tap the unbanked populace of the region.

Market expansion by tapping unbanked population

The cards and payments market in Mexico is being driven by the huge proportion of the unbanked population of the region. More than 70 percent of the region remains unbanked and more than 50 percent of the municipalities do not have access to banks or financial institutions. These have caused banks to launch initiatives for tapping the unbanked population through prepaid cards. These cards are easily accessible through agents and are issued to customers with a minimum requirement for identification.

The Mexican cards and payments market to be altered by the launches of domestic schemes

Carnet is projected to positively alter the landscape of the cards and payments market in Mexico and is issued by Prosa which is a collaboration of HSBC Mexico, Grupo Financiero Banorte SAB, Banco Invex, Grupo Financiero Santander SAB, Grupo Scotiabank and Banjercito. These banks are expected to capitalize on the promotion of Carnet cards as an alternative to foreign scheme providers such as Visa, which ends up costing more for domestic customers in processing costs.

Request Sample of the report for more information @ https://marketdataforecast.com/market-reports/Mexico-Cards-and-Payments-Market-6945/request-sample

Cards And Payments Of Mexico

Cards And Payments Of Mexico

Cards And Payments Of Mexico

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