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Market Opportunities and

Emerging Trends in the Prepaid

Card Market in Latin America

Industry Forecast Report

Reference code: IS2014MR

Published: June 2012

BRICdata

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London EC4Y 0BS

United Kingdom

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EXECUTIVE SUMMARY

Market Opportunities and Emerging Trends in the Prepaid Card Market in Latin America Page 2

© BRICdata. This product is licensed and is not to be photocopied Published: June 2012

1 Executive Summary

Brazil

Market Size

The Brazilian prepaid cards market increased in value from US$X.X billion in 2007 to US$X.X billion in 2011, at a CAGR of XX.XX% during the review period (2007–2011).

The Brazilian prepaid cards market is expected to continue growing over the forecast period (2012–2016), to

reach a value of US$XX.X billion in 2016.

Trends and growth drivers

Brazil’s GDP at constant prices increased in value at a CAGR of X.XX% during the review period, to reach

US$XXX.X billion in 2011. The country’s GDP is projected to register a CAGR of X.XX% over the forecast period

to value US$X.X trillion in 2016. Strong economic growth is expected to drive the nation’s prepaid cards market.

It is estimated that XX million of the Brazilian population are unbanked, or do not have access to banking

services. Prepaid cards provide an alternative payment platform to unbanked consumers and help increase

levels of financial inclusion.

The use of cards as a payment system is popular in Brazil. According to Associação Brasileira das Empresas de

Cartões de Crédito e Serviços (ABECS), the total number of credit cards in Brazil increased by XX% to reach

XXX.X million in 2011, while the number of debit cards increased by X.X% to reach XXX.X million in 2011.

Additionally XXX.X million private-label cards are in circulation. As Brazilian consumers are already familiar with

the concept of payment cards, it is easier for companies to promote prepaid cards.

In October 2011, the Brazilian government passed a law which mandates transport companies to pay truck

drivers through electronic payment systems. As many truck drivers in Brazil do not have a bank account, the

prepaid cards market is anticipated to be used by transport companies as a payment option.

The Brazilian government has passed a law which levies a X.XX% charge on all foreign transactions made

through Brazilian credit cards. However, as prepaid cards are preloaded with Brazilian reals, transactions are

treated as domestic payments and carry a lower tax rate of X.XX%. Consequently, Brazilian consumers are

adopting prepaid travel cards for the purposes of international travel.

Challenges

One of the major constraints challenging the implementation of payment cards is the threat of fraud and theft.

The large number of online frauds is dissuading Brazilians from using payment cards.

Brazil currently does not have a regulation for open-loop prepaid cards. A proper regulatory system needs to be

in place to attract companies and increase sales.

Competitive landscape

Banks and financial institutions are the leading providers of prepaid cards in Brazil. Companies operating in the

market include Banco do Brazil, Banco Cruzeiro do Sul SA, American Express and CBSS.

EXECUTIVE SUMMARY



Mexico

Market size

The Mexican prepaid cards market valued US$XX.X billion in 2011 and is expected to grow at a CAGR of

XX.XX% over the forecast period to value US$XX.X billion in 2016. This can be attributed to strong levels of

growth in the country’s banking sector and a demand for prepaid cards among younger consumers.


The Mexican prepaid cards market has slowly gained in popularity as organized retailers and vendors began to

accept prepaid cards without charging a processing fee. Furthermore, vehicle rental vendors are also using

prepaid cards for their service transactions.

Convenience and ease of use are expected to remain the most important drivers of the adoption of prepaid cards

in Mexico. Furthermore, demand from younger consumers is anticipated to play a vital role in the market’s growth

over the forecast period.

Retailers and supermarkets have launched their own prepaid cards in partnership with commercial banks or

prepaid card solution companies. Mexican retailers offering gift cards include iTunes, Cinemex, Mixup, Gandhi,

Lo Mejor de México, Smartbox, Starbucks, California Pizza Kitchen, Chili’s, Experimenta, Bueno, todito Card,

Saludo, Hablando Derecho,10 en Tareas and Xbox Live.

The Mexican prepaid card market offers significant growth opportunities to banks, solution providers and

retailers. In Mexico, the formal banking sector targets only the top-earning XX.X% of the population, while the

other XX.X% is considered too risky and unprofitable.

In terms of food, Mexico is one of the leading markets for prepaid cards with an anticipated market value of

US$X.X billion in transactions by 2016.

Challenges

Customer due diligence remains a primary concern and increases risks such as identity fraud or the use of the

product by third parties for illicit purposes.


Banks and financial institutions are the main providers of prepaid cards. NovoPayments and Blackhawk

Networks, which provide prepaid card solutions and services, are big names in the Mexican prepaid card

industry. Retailers such as Office Depot offer multiple prepaid card options.

EXECUTIVE SUMMARY



Chile

Market size

The Chilean prepaid cards market valued US$XXX.X million in 2011 and is expected to grow at a CAGR of

XX.XX% over the forecast period to value US$X.X billion in 2016. Consumer awareness and an increasing

demand among the unbanked population are expected to drive the growth of the country’s prepaid cards market.


During the review period, XX% of Chilean retailers enrolled in a gift card program, making the country the

second-largest Latin American market after Mexico for prepaid cards. Chilean gift card brands include Falabella,

Easy and Paris.

Reloadable open-loop prepaid cards present an opportunity for retailers and banks to enhance established

customer relationships and attract new customers.

There are opportunities in the Chilean prepaid card market to introduce open-loop cards which have distinctive

benefits for both retailers and customers alike. The open loop cards expands the usability of the card and do not

restricts the user to shop from the limited retailers.

Social commerce and online retail sales are growing rapidly in Chile. Social commerce registered a CAGR of

XX.XX% during the review period and was responsible for driving market growth.

Challenges

During the review period, cashless banking transactions were highly unpopular in Chile. The frequency of

payments made through prepaid cards is lowest among the rural and low-income population, due to a lack of

awareness and knowledge of the benefits these payment platforms can provide.


The Chilean prepaid card market is in its developmental stages and consequently only a limited number of

competitors operate in this market. Mostly characterized by banks, some large retailers such as Farmacias

Ahumada, Falabella and Ripley offer prepaid cards in partnership with commercial banks.

EXECUTIVE SUMMARY



Peru

Market Size

The Peruvian prepaid cards market increased in value from US$XX.X million in 2007 to US$XXX.X million in

2011, at a CAGR of XX.XX% during the review period.

The Peruvian prepaid cards market is expected to continue growing over the forecast period to reach a value of

US$X.X billion in 2016.


Peru’s GDP at constant prices valued US$XX.X billion in 2011, after recording a CAGR of X.XX% during the

review period. GDP growth is projected to increase at a CAGR of X.XX% over the forecast period to reach a

value of US$XXX.X billion in 2016. Stable economic growth is expected to drive the nation’s prepaid cards

market.

More than XX% of the Peruvian population is still unbanked. In order to provide wider levels of financial inclusion,

banks in Peru are expected to issue prepaid or debit cards rather than credit cards. The ease of obtaining

prepaid cards will drive the market over the forecast period.

The online retailing market in Peru is projected to record a CAGR of XX.XX% over the forecast period. While

debit and credit cards can be used for online purchases, prepaid cards are expected to be used for online retail

purchases due to the security options they provide.

Challenges

A lack of consumer awareness with regards to the types of prepaid cards that are available is one of the main

challenges preventing prepaid card usage in Peru. When compared to debit and credit cards, prepaid cards are a

relatively new payment method and have not been as strongly marketed by banks. Consequently, prepaid cards

have not been able to successfully penetrate the Peruvian payment system.

Peruvians prefer conducting financial transactions through cash than through cards. Although this trend is

changing gradually, it will take some time before prepaid card transactions are as popular as cash-based

transactions.

In Peru, prepaid cards are unpopular due to a lack of technological infrastructure to support their utilization and

low levels of adoption by merchants and vendors. Factors such as the low number of ATMs and POS terminals

need to be addressed to encourage more transactions though prepaid cards.


The Peruvian prepaid cards market is small and in its early stages of development, therefore competition is not

regarded as intense. Some of the companies operating in the Peruvian prepaid cards market are Novopayment,

Edenred and BBVA Continental.

TABLE OF CONTENTS



TABLE OF CONTENTS

1 Executive Summary ................................................................................................................................ 2 2 Latin American Prepaid Cards Market Benchmarking ...................................................................... 10

2.1 Overview of Latin American Prepaid Card Market Dynamics ................................................................. 10

2.2 Types of Prepaid Cards Available in Latin America ................................................................................ 11

2.3 Macroeconomic Drivers ........................................................................................................................... 12

3 Prepaid Cards Market in Brazil ............................................................................................................ 14

3.1 Market Environment ................................................................................................................................ 14

3.1.1 Banking industry structure in Brazil ......................................................................................................... 14

3.1.2 Payment system ...................................................................................................................................... 15

3.1.3 Regulatory framework ............................................................................................................................. 17

3.2 Market Size and Growth Potential ........................................................................................................... 19

3.2.1 Brazil banking sector market size ........................................................................................................... 19

3.2.2 Brazil prepaid cards market size ............................................................................................................. 21

3.3 Marketing Strategies Adopted for Prepaid Cards.................................................................................... 23

3.4 Key Trends, Drivers and Challenges ...................................................................................................... 24

3.4.1 Economic drivers ..................................................................................................................................... 25

3.4.2 Consumer drivers .................................................................................................................................... 27

3.4.3 Business trends and growth drivers ........................................................................................................ 29

3.4.4 Challenges .............................................................................................................................................. 31

3.5 Competitive Landscape ........................................................................................................................... 32

3.5.1 Banco do Brazil ....................................................................................................................................... 32

3.5.2 American Express ................................................................................................................................... 33

3.5.3 CBSS ....................................................................................................................................................... 33

3.5.4 Banco Cruzeiro do Sul SA ...................................................................................................................... 33

4 Prepaid Cards Market in Mexico .......................................................................................................... 34


4.1.1 Banking industry structure in Mexico ...................................................................................................... 34

4.1.2 Payment systems in Mexico .................................................................................................................... 34



4.2.1 Mexico banking sector market size ......................................................................................................... 38

4.2.2 Mexico prepaid cards market size ........................................................................................................... 40

4.3 Marketing Strategies Adopted for Selling Prepaid Cards ........................................................................ 42



4.4.2 Consumer driver ...................................................................................................................................... 46


4.4.4 Challenges .............................................................................................................................................. 49


4.5.1 NonoPayment Inc. ................................................................................................................................... 50

4.5.2 Blackhawk Network ................................................................................................................................. 51

TABLE OF CONTENTS



4.5.3 BBVA Bancomer ..................................................................................................................................... 52

4.5.4 Banamex ................................................................................................................................................. 53

5 Prepaid Cards Market in Chile ............................................................................................................. 54


5.1.1 Banking industry structure in Chile .......................................................................................................... 54

5.1.2 Payment system in Chile ......................................................................................................................... 54



5.2.1 Chile banking sector market size ............................................................................................................ 56

5.2.2 Chile prepaid cards market size .............................................................................................................. 58






5.4.4 Challenges .............................................................................................................................................. 67


5.5.1 Banco Santander-Chile ........................................................................................................................... 68

5.5.2 Banco de Chile ........................................................................................................................................ 69

5.5.3 S.A.C.I. Falabella .................................................................................................................................... 70

5.5.4 Ripley Corp SA ........................................................................................................................................ 71

6 Prepaid Cards Market in Peru .............................................................................................................. 72


6.1.1 Banking industry structure in Peru .......................................................................................................... 72

6.1.2 Payment system ...................................................................................................................................... 73



6.2.1 Peru banking sector market size ............................................................................................................. 74

6.2.2 Peru prepaid cards market size .............................................................................................................. 76






6.4.4 Challenges .............................................................................................................................................. 85


6.5.1 Novopayment .......................................................................................................................................... 86

6.5.2 Edenred ................................................................................................................................................... 87

6.5.3 BBVA Continental.................................................................................................................................... 87

7 Appendix ................................................................................................................................................ 88

7.1 About BRICdata ...................................................................................................................................... 88

7.1.1 Areas of expertise ................................................................................................................................... 88

7.2 Methodology ............................................................................................................................................ 89

TABLE OF CONTENTS



7.3 Disclaimer ................................................................................................................................................ 90

TABLE OF CONTENTS



LIST OF FIGURES

Figure 1: Latin America Prepaid Card Market Comparison .................................................................................................................. 11 Figure 2: Brazilian Transaction Volumes by Payment Methods (%), 2010 ........................................................................................... 16 Figure 3: Brazilian Transaction Values by Payment Methods (%), 2010 .............................................................................................. 16 Figure 4: Brazilian Transaction Value by Payment Method (BRL Billion), 2007–2011 ........................................................................ 17 Figure 5: Brazilian Banking Industry Loans and Deposits (US$ Billion), 2007–2011 .......................................................................... 20 Figure 6: Brazilian Banking Industry Value by Loans and Deposits (US$ Billion), 2012–2016 ........................................................... 21 Figure 7: Brazilian Prepaid Cards Market Size (US$ Billion), 2007–2011 ............................................................................................. 22 Figure 8: Brazilian Prepaid Cards Market Size (US$ Billion), 2012–2016 ............................................................................................. 23 Figure 9: Trends, Drivers and Challenges in the Brazilian Prepaid Cards Market .............................................................................. 25 Figure 10: Brazil – GDP at Constant Prices (US$ Billion), 2007–2016 .................................................................................................. 26 Figure 11: Brazilian Inflation Rate (%), 2007–2016 ................................................................................................................................ 27 Figure 12: Brazilian Annual Disposable Income (US$ Billion), 2007–2016 .......................................................................................... 28 Figure 13: Brazilian Unemployment Rate (%), 2007–2016 ..................................................................................................................... 29 Figure 14: Brazil Point of Sales Terminal, 2007–2011 ........................................................................................................................... 30 Figure 15: Brazilian Total Credit as Percentage of GDP (%), 2007–2011 ............................................................................................. 31 Figure 16: Brazilian Prepaid Card Market Challenges ........................................................................................................................... 32 Figure 17: Credit Card Penetration of Social Class Groups (%), 2011 ................................................................................................. 37 Figure 18: Mexican Banking Industry Value by Loans and Deposits (US$ Billion), 2007–2011 .......................................................... 40 Figure 19: Mexican Banking Industry Value by Loans and Deposits (US$ Billion), 2012–2016 .......................................................... 41 Figure 20: Mexican Prepaid Card Industry (US$ Billion), 2007–2011 ................................................................................................... 42 Figure 21: Mexican Prepaid Card Industry (US$ Billion), 2012–2016 ................................................................................................... 43 Figure 22: Trends, Drivers and Challenges in Mexican Prepaid Cards Market ................................................................................... 45 Figure 23: Mexican GDP at Constant Prices (MXN Trillion), 2007–2016 ............................................................................................... 46 Figure 24: Mexican Inflation Rate (%), 2007–2016 ................................................................................................................................. 47 Figure 25: Mexican Annual Disposable Income (MXN Trillion), 2007–2016 ......................................................................................... 48 Figure 26: Mexican Unemployment Rate (%), 2007–2016 ..................................................................................................................... 49 Figure 27: Mexican Prepaid Card Market Challenges ........................................................................................................................... 51 Figure 28: Chilean Banking Industry Value by Loans and Deposits (US$ Billion), 2007–2011 ........................................................... 58 Figure 29: Chilean Banking Industry Value by Loans and Deposits (US$ Billion), 2012–2016 ........................................................... 59 Figure 30: Chilean Prepaid Card Industry (US$ Million), 2007–2011 .................................................................................................... 60 Figure 31: Chilean Prepaid Card Industry (US$ Million), 2012–2016 .................................................................................................... 61 Figure 32: Marketing Strategies for Prepaid Card ................................................................................................................................. 62 Figure 33: Trends, Drivers and Challenges in Chilean Prepaid Cards Market ..................................................................................... 63 Figure 34: Chilean GDP at Constant Prices (CLP Trillion), 2007–2016 ................................................................................................. 64 Figure 35: Chilean Inflation Rate (%), 2007–2016 .................................................................................................................................. 65 Figure 36: Chilean Annual Disposable Income (CLP Trillion), 2007–2016 ........................................................................................... 66 Figure 37: Chilean Unemployment Rate (%), 2007–2016 ....................................................................................................................... 67 Figure 38: Chilean Internet Subscribers (Millions), 2007–2011 ............................................................................................................ 68 Figure 39: Chilean Prepaid Card Market Challenges ............................................................................................................................. 69 Figure 40: Peruvian Transaction Values by Payment Methods (%), 2011 ............................................................................................ 75 Figure 41: Peruvian Banking Industry Loans and Deposits (US$ Billion), 2007–2011 ........................................................................ 77 Figure 42: Peruvian Banking Industry Value by Loans and Deposits (US$ Billion), 2012–2016 ......................................................... 78 Figure 43: Peruvian Prepaid Cards Market Size (US$ Million), 2007–2011 .......................................................................................... 79 Figure 44: Peruvian Prepaid Cards Market Size (US$ Million), 2012–2016 .......................................................................................... 80 Figure 45: Trends, Drivers and Challenges in Peruvian Prepaid Cards Market................................................................................... 82 Figure 46: Peruvian GDP at Constant Prices (US$ Billion), 2007–2016 ................................................................................................ 83 Figure 47: Peruvian Inflation Rate (%), 2007–2016 ................................................................................................................................ 84 Figure 48: Peruvian Annual Disposable Income (US$ Billion), 2007–2016 .......................................................................................... 85 Figure 49: Peruvian Unemployment Rate (%), 2007–2016 .................................................................................................................... 86 Figure 50: Peruvian Prepaid Card Market Challenges .......................................................................................................................... 88

TABLE OF CONTENTS



LIST OF TABLES

Table 1: Latin America Prepaid Card Market Comparison (US$ Billion) .............................................................................................. 11 Table 2: Latin America Prepaid Card Market Comparison (US$ Billion) .............................................................................................. 11 Table 3: Latin America Prepaid Card Categories .................................................................................................................................. 12 Table 4: Latin American Countries’ Macroeconomic Indicators, 2011 ................................................................................................. 13 Table 5: Latin American Countries’ Macroeconomic Indicators, 2011 ................................................................................................. 13 Table 6: Latin American Countries’ Macroeconomic Indicators, 2016 ................................................................................................. 14 Table 7: Latin American Countries’ Macroeconomic Indicators, 2016 ................................................................................................. 14 Table 8: Brazilian Banks by Institution Type, 2011................................................................................................................................ 15 Table 9: Brazilian Banks Branch Network, 2011 .................................................................................................................................... 15 Table 10: Brazilian Banking Industry Value by Loans and Deposits (US$ Billion), 2007–2011 .......................................................... 20 Table 11: Brazilian Banking Industry Value by Loans and Deposits (US$ Billion), 2012–2016 .......................................................... 21 Table 12: Brazilian Prepaid Cards Market Size (US$ Billion), 2007–2011 ............................................................................................. 22 Table 13: Brazilian Prepaid Cards Market Size (US$ Billion), 2012–2016 ............................................................................................. 23 Table 14: Brazilian Banks Market Share, 2011 ....................................................................................................................................... 33 Table 15: Mexican Banking Industry Value by Loans and Deposits (US$ Billion), 2007–2011 ........................................................... 40 Table 16: Mexican Banking Industry Value by Loans and Deposits (US$ Billion), 2012–2016 ........................................................... 41 Table 17: Mexican Prepaid Card Industry (US$ Billion), 2007–2011 ..................................................................................................... 42 Table 18: Mexican Prepaid Card Industry (US$ Billion), 2012–2016 ..................................................................................................... 43 Table 19: NovoPayment – Key Facts ...................................................................................................................................................... 52 Table 20: NovoPayment – Main Services ............................................................................................................................................... 52 Table 21: Blackhawk Network – Key Facts ............................................................................................................................................ 53 Table 22: Blackhawk Network – Main Services ..................................................................................................................................... 53 Table 23: BBVA Bancomer – Key Facts ................................................................................................................................................. 54 Table 24: BBVA Bancomer – Main Services .......................................................................................................................................... 54 Table 25: Banamex – Key Facts .............................................................................................................................................................. 55 Table 26: Banamex – Main Services ....................................................................................................................................................... 55 Table 27: Chilean Banking Industry Value by Loans and Deposits (US$ Billion), 2007–2011 ............................................................ 58 Table 28: Chilean Banking Industry Value by Loans and Deposits (US$ Billion), 2012–2016 ............................................................ 59 Table 29: Chilean Prepaid Card Industry (US$ Million), 2007–2011 ...................................................................................................... 60 Table 30: Chilean Prepaid Card Industry (US$ Million), 2012–2016 ...................................................................................................... 61 Table 31: Banco Santander-Chile – Key Facts ....................................................................................................................................... 70 Table 32: Banco Santander-Chile – Main Services ................................................................................................................................ 70 Table 33: Banco de Chile – Key Facts .................................................................................................................................................... 71 Table 34: Banco de Chile – Main Services ............................................................................................................................................. 71 Table 35: S.A.C.I. Falabella – Key Facts ................................................................................................................................................. 72 Table 36: S.A.C.I. Falabella – Main Services .......................................................................................................................................... 72 Table 37: Ripley Corp SA – Key Facts .................................................................................................................................................... 73 Table 38: Ripley Corp SA – Main Services ............................................................................................................................................. 73 Table 39: Peruvian Banking Industry Value by Loans and Deposits (US$ Billion), 2007–2011 .......................................................... 77 Table 40: Peruvian Banking Industry Value by Loans and Deposits (US$ Billion), 2012–2016 .......................................................... 78 Table 41: Peruvian Prepaid Cards Market Size (US$ Million), 2007–2011 ............................................................................................ 79 Table 42: Peruvian Prepaid Cards Market Size (US$ Million), 2012–2016 ............................................................................................ 80 Table 43: Peruvian Banks Market Share, 2011 ....................................................................................................................................... 89

PERPAID CARDS MARKET IN BRAZIL



2 Latin American Prepaid Cards Market Benchmarking

2.1 Overview of Latin American Prepaid Card Market Dynamics

The Latin American (Brazil, Mexico, Chile and Peru) prepaid card industry, including both open and closed-loop prepaid

cards, registered strong growth during the review period, posting a combined CAGR of XX.XX%. The industry reached a

market value of US$XX.X billion in 2011. Mexico was the largest prepaid card market with market value of US$XX.X billion

in 2011 followed by Brazil with US$X.X billion. Peru’s prepaid card market remains the fastest-growing market registering

a CAGR of XX.XX% during the review period.

Over the forecast period the dynamics of Latin American prepaid card market are expected to remain the same with

Mexico leading with a market size of US$XX.X billion in 2016, followed by Brazil with a market size of US$XX.X billion.

Table 1: Latin America Prepaid Card Market Comparison (US$ Billion)

2007 Market Size 2011 Market Size CAGR 2007–2011

Brazil X.X X.X XX.XX%

Mexico X.X XX.X XX.XX%

Chile X.X X.X XX.XX%

Peru X.X X.X XX.XX%

Total X.X XX.X XX.XX%

Source: BRICdata analysis © BRICdata

Table 2: Latin America Prepaid Card Market Comparison (US$ Billion)

2012 Market Size 2016 Market Size CAGR 2012–2016

Brazil X.X XX.X XX.XX%

Mexico XX.X XX.X XX.XX%

Chile X.X X.X XX.XX%

Peru X.X X.X XX.XX%

Total XX.X XX.X XX.XX%


Figure 1: Latin America Prepaid Card Market Comparison





3 Prepaid Cards Market in Brazil

3.1 Market Environment

3.1.1 Payment system

According to the Brazilian credit cards association, ABECS, purchases made with credit, debit and store cards valued

BRLXXX.X billion (US$XXX.X billion) in 2011. Total credit cards transaction value increased at a CAGR of XX.XX% during

the review period to value BRLXXX.X billion (US$XXX.X billion) in 2011. Debit cards posted a CAGR of XX.XX% during

the review period to value BRLXXX.X billion (US$XXX.X billion) and store cards recorded CAGR of XX.XX% to value

BRLXX.X billion (US$XX.X billion).

Figure 4: Brazilian Transaction Value by Payment Method (BRL Billion), 2007–2011

Source: ABECS and BRICdata analysis © BRICdata




3.2 Market Size and Growth Potential

3.2.1 Brazil banking sector market size

The Brazilian banking industry is strongly governed and was largely unaffected by the global financial crisis. Total bank

deposits in Brazil valued US$X.X trillion in 2011 and time and savings deposits accounted for the largest share of XX.X%

of these, which corresponds to a value of US$X.X trillion, while current account deposits accounted for the remaining

share of X.X%, which corresponds to a value of US$XXX.X billion. In addition, the total bank loans in Brazil valued

US$X.X trillion in 2011. Long-term loans accounted for XX.X% of the total Brazilian banking loans, and short-term loans

accounted for the remaining XX.X%.

Table 10: Brazilian Banking Industry Value by Loans and Deposits (US$ Billion), 2007–2011

2007 2008 2009 2010 2011

Short-term loans XXX.X XXX.X XXX.X XXX.X XXX.X

Long-term loans XXX.X XXX.X XXX.X XXX.X XXX.X

Total Loans XXX.X XXX.X XXX.X XXXX.X XXXX.X

Current account deposits XXX.X XX.X XXX.X XXX.X XXX.X

Time and savings deposits XXXX.X XXXX.X XXXX.X XXXX.X XXXX.X

Total Deposits XXXX.X XXXX.X XXXX.X XXXX.X XXXX.X

Source: EIU and BRICdata analysis © BRICdata

Figure 5: Brazilian Banking Industry Loans and Deposits (US$ Billion), 2007–2011





Brazil’s total bank deposits are expected to increase in value at a CAGR of X.XX% over the forecast period to reach

US$X.X trillion in 2016. Meanwhile, the total loans are expected to register a CAGR X.XX%, to reach a value of US$X.X

trillion in 2016. The expansion of banking services to the unbanked and under-banked Brazilian population will continue to

drive the growth of the banking industry over the forecast period.

Table 11: Brazilian Banking Industry Value by Loans and Deposits (US$ Billion), 2012–2016

2012 2013 2014 2015 2016

Short-term loans XXX.X XXX.X XXX.X XXX.X XXX.X

Long-term loans XXX.X XXX.X XXX.X XXX.X XXX.X

Total Loans XXXX.X XXXX.X XXXX.X XXXX.X XXXX.X

Current account deposits XXX.X XXX.X XXX.X XXX.X XXX.X

Time and savings deposits XXXX.X XXXX.X XXXX.X XXXX.X XXXX.X

Total Deposits XXXX.X XXXX.X XXXX.X XXXX.X XXXX.X


Figure 6: Brazilian Banking Industry Value by Loans and Deposits (US$ Billion), 2012–2016





3.2.2 Brazil prepaid cards market size

Brazilian prepaid cards increased in value from US$X.X billion in 2007 to US$X.X billion in 2011, at a CAGR of XX.XX%

during the review period. Such growth is mainly attributed to the growing demand of prepaid card among younger

consumers.

Table 12: Brazilian Prepaid Cards Market Size (US$ Billion), 2007–2011

2007 2008 2009 2010 2011 CAGR 2007–2011

Prepaid Cards X.X X.X X.X X.X X.X XX.XX%


Figure 7: Brazilian Prepaid Cards Market Size (US$ Billion), 2007–2011





The Brazilian prepaid cards market is expected to continue growing over the forecast period. The market is projected to

record a CAGR of XX.XX% over the forecast period, to reach a value of US$XX.X billion in 2016.

Table 13: Brazilian Prepaid Cards Market Size (US$ Billion), 2012–2016

2012 2013 2014 2015 2016 CAGR 2012–2016

Prepaid Cards X.X XX.X XX.X XX.X XX.X XX.XX%


Figure 8: Brazilian Prepaid Cards Market Size (US$ Billion), 2012–2016


PREPAID CARDS MARKET IN MEXICO



4 Prepaid Cards Market in Mexico

4.1 Market Size and Growth Potential

4.1.1 Mexico banking sector market size

During the review period the total deposits in Mexican banks grew at a CAGR of X.XX% and valued US$XXX.X billion in

2011. Time and saving deposits measured the largest share of US$XXX.X billion. Total loans, amounted to US$XXX.X

billion and registered a CAGR of X.XX% during the review period.

Table 15: Mexican Banking Industry Value by Loans and Deposits (US$ Billion), 2007–2011

2007 2008 2009 2010 2011 CAGR 2007–2011

Short-term loans XX.X XX.X XX.X XX.X XX.X X.XX%

Long-term loans XXX.X XXX.X XXX.X XXX.X XXX.X X.XX%

Total Loans XXX.X XXX.X XXX.X XXX.X XXX.X X.XX%

Current account deposits XX.X XX.X XX.X XX.X XX.X X.XX%

Time and savings deposits XXX.X XXX.X XXX.X XXX.X XXX.X X.XX%

Total Deposits XXX.X XXX.X XXX.X XXX.X XXX.X X.XX%


Figure 18: Mexican Banking Industry Value by Loans and Deposits (US$ Billion), 2007–2011





Mexico’s total bank deposits are expected to increase in value at a CAGR of XX.XX% over the forecast period, to reach

US$XXX.X billion in 2016. The total loans are expected to register a CAGR XX.XX%, to reach a value of US$XXX.X billion

in 2016.

Table 16: Mexican Banking Industry Value by Loans and Deposits (US$ Billion), 2012–2016

2012 2013 2014 2015 2016 CAGR 2012–2016

Short-term loans XX.X XXX.X XXX.X XXX.X XXX.X XX.XX%

Long-term loans XXX.X XXX.X XXX.X XXX.X XXX.X XX.XX%

Total Loans XXX.X XXX.X XXX.X XXX.X XXX.X XX.XX%

Current account deposits XX.X XXX.X XXX.X XXX.X XXX.X XX.XX%

Time and savings deposits XXX.X XXX.X XXX.X XXX.X XXX.X XX.XX%

Total Deposits XXX.X XXX.X XXX.X XXX.X XXX.X XX.XX%


Figure 19: Mexican Banking Industry Value by Loans and Deposits (US$ Billion), 2012–2016





4.1.2 Mexico prepaid cards market size

The Mexican market valued US$XX.X billion in 2011 and grew at a CAGR of XX.XX% during the review period.

Table 17: Mexican Prepaid Card Industry (US$ Billion), 2007–2011

2007 2008 2009 2010 2011 CAGR 2007–2011

Market Size X.X X.X X.X X.X XX.X XX.XX%


Figure 20: Mexican Prepaid Card Industry (US$ Billion), 2007–2011





The demand for the prepaid cards in Mexico is expected to grow over the forecast period to post a CAGR of XX.XX% and

value US$XX.X billion in 2016.

Table 18: Mexican Prepaid Card Industry (US$ Billion), 2012–2016

2012 2013 2014 2015 2016 CAGR 2012–2016

Market Size XX.X XX.X XX.X XX.X XX.X XX.XX%


Figure 21: Mexican Prepaid Card Industry (US$ Billion), 2012–2016


APPENDIX



5 Appendix

5.1 About BRICdata

BRICdata publishes in-depth strategic intelligence reports that help its customers better understand opportunities in

emerging markets and industry sectors. Its reports provide an independent, expert view supported by primary research

and access to leading data and intelligence sources.

BRICdata is a comprehensive source of insights and analysis, and publishes a broad range of reports across a number of

different industry sectors, including consumer, retail, financial services, technology, telecoms and construction.

BRICdata is headquartered in London with research, analysis and account management teams based across Europe, the

US and Asia-Pacific. Its global research footprint is supported by a network of external associates, data partners and

industry experts to give the clearest possible perspective on emerging markets.

5.1.1 Areas of expertise

BRICdata operates a dedicated, multilingual team of in-house industry analysts with significant experience of global and

country-level research. BRICdata also maintains data and research partnerships with other research companies, industry

experts and trade associations, along with a network of independent industry consultants and former industry participants

contributing research and reports to bring additional insight and expertise in more specialist areas.

BRICdata’s research offering spans the following industry areas:

Construction

BRICdata publishes reports covering the entire construction value chain: construction materials, equipment, construction

services, architectural services and interior design. It also covers the main value sectors of construction activity:

commercial, infrastructure, industrial, institutional and residential.

This comprehensive view of the market enables BRICdata to detail key growth sectors and countries and identify the most

attractive industry opportunities.

Consumer goods

Covering a broad range of areas across the consumer goods market, from interior products to fast-moving consumer

goods (FMCG), ingredients, and packaging, BRICdata offers a comprehensive insight into key consumer sectors across

fast-growing markets, identifying key trends, future innovations and growth opportunities.

Comprehensive data sets including unique primary survey-driven research creates accurate market forecasts and

understanding of the factors driving consumption behavior.

Financial services

Providing detailed insights into insurance and banking markets, BRICdata’s financial services reports identify key market

opportunities, emerging technologies and channel strategies. The reports provide unique data combined with local

examples of best practice and expert insights into the market.

Retail

BRICdata maintains a comprehensive database of forecasts of retail spending, along with a series of unique indicators

enabling a forward view of retailers’ prospects in emerging markets. The reports identify emerging concepts in retail,

including the nascent online and mobile retail sectors in the BRIC countries and other emerging markets.

Technology

BRICdata tracks key trends and innovations, emerging technologies and markets, and the key operators in both emerging

markets and technologies. Covering a range of emerging and disruptive technologies including telecoms, social media,

online and mobile retailing, and telemedicine, BRICdata examines strategies for success, the state of the competitive

landscape and the inherent threats and opportunities in the emerging technological economy.

5.2 Methodology

All BRICdata reports are rigorously sourced and created according to a comprehensive, two-stage methodology. This

includes internal audit and primary research.

A) Internal audit

Review of in-house databases to gather existing data:

APPENDIX



o Historic market databases and reports

o Company database

o projects database

B) Primary research

Review of the latest company strategy and asset management trends

1) Research

A. Sources

Collection of the latest market-specific data from a wide variety of industry sources:

o Government statistics

o Industry associations

o Company filings

o Broker reports

o International organizations

B. Expert opinion

Collation of opinion taken from leading industry experts

Analysis of third-party opinion and forecasts:

o Broker reports

o Industry associations

o Official government sources

C. Data consolidation and verification

Consolidation of data and opinion to create historical datasets

Creation of models to benchmark data across sectors and geographies

2) Research Analysis

Market forecasts

Feed of forecast data into market models:

o Macroeconomic indicators

o Industry-specific drivers

Analysis of Market Databases to identify trends by sector:

o Latest trends

o Key drivers of the market

3) Report Writing

Analysis of market data

Discussion of company and industry trends and issues

Integration of survey results

Annual review of trends

Standardization of market definitions using recognized industry classifications

4) Quality Control

A. Templates

Detailed process manuals

Standardized report templates and accompanying style guides

Complex forecasting tool used to ensure forecast methodologies are consistently applied

QC checklists

APPENDIX



B. QC process

Peer review

Senior-level QC

Random spot checks on data integrity

Benchmark checks across databases

Market data cross-checked for consistency with accumulated data from company filings

5.3 Disclaimer

All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,

electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, BRICdata.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the

findings, conclusions and recommendations that BRICdata delivers will be based on information gathered in good faith

from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. BRICdata can,

therefore, accept no liability whatsoever for actions taken based on any information that may subsequently prove to be

incorrect.

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