JSB Market Research: Venezuela's Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

JSB Market Research: Venezuela's Cards and 

Payments Industry: Emerging Opportunities, 

Trends, Size, Drivers, Strategies, Products and 

Competitive Landscape 

On 10 th Sept. 2014 

Synopsis 

• The "Venezuela's Cards and Payments Industry: Emerging Opportunities, 

Trends, Size, Drivers, Strategies, Products and Competitive Landscape" report 

provides top-level market analysis, information and insights into Venezuelas 

cards and payments industry, including: 

• Current and forecast values for each category of Venezuelas cards and 

payments industry, including debit cards, credit cards and prepaid cards 

• Comprehensive analysis of the industry’s market attractiveness and future 

growth areas 

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• Analysis of various market drivers and regulations governing Venezuelas cards 

and payments industry 

• Detailed analysis of the marketing strategies adopted for selling debit, credit 

and prepaid cards used by banks and other institutions in the market 

• Comprehensive analysis of consumer attitudes and buying preferences for 

cards 

• The competitive landscape of Venezuelas cards and payments industry 

Executive summary 

Venezuela is one of the founding members of Organization of the Petroleum 

Exporting Countries (OPEC) and is one of the world’s biggest exporters of crude 

oil. The global crisis severely affected the Venezuelan economy, with the GDP 

growth contracting to reach -3.20% in 2009. Since early 2013, the country has 

faced food shortages, high inflation, and pressures on fixed currency exchange 

regulations. In a bid to revive the economy, the government is attempting to 

tackle problems in the core areas such the supply of goods, import of food 

staples, labor, and international travel. In May 2014, the government increased 

minimum wages by 30%, followed by increase in average salary of public 

administration workers and civil servants by 43% in July. The anticipated growth 

in economy over the forecast period (2014–2018) will have a positive effect on 

the card payments channel. 

The Venezuelan card payments channel grew in value and volume terms during 

the review period (2009–2013). The channel grew from 24.7 million cards in 

circulation in 2009 to 34.6 million in 2013, at a compound annual growth rate 

(CAGR) of 8.77% and is anticipated to further post a CAGR of 6.74% over the 

forecast period, to reach 49.1 million in 2018. In terms of transaction value, the 

card payments channel grew VEF189.5 billion (US$88.3 billion) in 2009 to 

VEF845.3 billion (US$138.2 billion) in 2013, at a review-period CAGR of 45.32% 

and is anticipated to post a forecast-period CAGR of 21.50%, to reach to VEF2.5 

trillion (US$139 billion) in 2018. 

Banks in Venezuela are focusing on offering banking and financial services to 

customers residing in urban and rural areas, through low-cost channels such as 

internet and mobile banking and self-service terminals. This strategy serves 

several purposes: banks are able to reduce branch establishment costs, while 

customers benefit from not waiting in long queues, and can also avoid being 


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obbed. Consequently, most Venezuelan consumers are open to modern payment 

methods. 

In terms of transaction value, the debit and credit card categories recorded 

respective review-period CAGRs of 50.87% and 27.62%. In 2013, the value of 

debit card transactions at POS terminals was marginally greater than at ATMs, 

representing 51.8% of the total debit cards transaction value. Similarly, the value 

of credit cards transactions at POS terminals was greater than that at ATMs, 

representing 95% of the total credit cards transaction value. Increasing use of 

debit and credit cards at POS terminals and the growing need for credit among 

middle-class families are anticipated to increase card transaction values over the 

forecast period. 

Scope 

• This report provides a comprehensive analysis of Venezuelas cards and 

payments industry. 

• It provides current values for Venezuelas cards and payments industry for 

2013, and forecast figures for 2018. 

• It details the different economic, infrastructural and business drivers affecting 

Venezuelas cards and payments industry. 

• It outlines the current regulatory framework in the industry. 

• It details the marketing strategies used by various banks and other institutions. 

• It profiles the major banks in Venezuelas cards and payments industry. 

Key highlights 

• The Venezuelan card payments channel grew in value and volume terms during 

the review period (2009–2013). The channel grew from 24.7 million cards in 

circulation in 2009 to 34.6 million in 2013, at a compound annual growth rate 

(CAGR) of 8.77% and is anticipated to further post a CAGR of 6.74% over the 

forecast period, to reach 49.1 million in 2018. In terms of transaction value, the 

card payments channel grew VEF189.5 billion (US$88.3 billion) in 2009 to 

VEF845.3 billion (US$138.2 billion) in 2013, at a review-period CAGR of 45.32% 

and is anticipated to post a forecast-period CAGR of 21.50%, to reach to VEF2.5 

trillion (US$139 billion) in 2018. 


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• Many factors supported the review-period growth, such as an increase in per 

capita income, payment infrastructure modernization, growth in retail, e- 

commerce and tourism industries. Venezuela’s government’s decision to offer 

social benefits to senior citizens through banks supported the growth of the debit 

cards category, while growing demand for credit among middle-income 

consumers following the economic crisis benefitted the credit cards category. 

• Banks in Venezuela are focusing on offering banking and financial services to 

customers residing in urban and rural areas, through low-cost channels such as 

internet and mobile banking and self-service terminals. This strategy serves 

several purposes: banks are able to reduce branch establishment costs, while 

customers benefit from not waiting in long queues, and can also avoid being 

robbed. Consequently, most Venezuelan consumers are open to modern payment 

methods. 

• In terms of transaction value, the debit and credit card categories recorded 

respective review-period CAGRs of 50.87% and 27.62%. In 2013, the value of 

debit card transactions at POS terminals was marginally greater than at ATMs, 

representing 51.8% of the total debit cards transaction value. Similarly, the value 

of credit cards transactions at POS terminals was greater than that at ATMs, 

representing 95% of the total credit cards transaction value. Increasing use of 

debit and credit cards at POS terminals and the growing need for credit among 

middle-class families are anticipated to increase card transaction values over the 

forecast period. 

Reasons to buy 

• Make strategic business decisions using top-level historic and forecast market 

data related to Venezuelas cards and payments industry and each market within 

it. 

• Understand the key market trends and growth opportunities within Venezuelas 

cards and payments industry. 

• Assess the competitive dynamics in Venezuelas cards and payments industry. 

• Gain insights in to the marketing strategies used for selling various card types 

in Venezuela. 

• Gain insights into key regulations governing Venezuelas cards and payments 

industry. 


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Table of Contents: 

1 Executive Summary 

2 Analysis of Market Environment, Key Trends and Drivers 

2.1 Payment Infrastructure and Emerging Technologies 

2.1.1 Growing number of ATMs 

2.1.2 Growing number of POS terminals 

2.1.3 Growing number of EMV cards 

2.1.4 Rising internet penetration 

2.2 Business Drivers 

2.2.1 Growth in the retail industry 

2.2.2 Growth in e-commerce 

2.3 Economic Drivers 

2.3.1 GDP growth 

2.3.2 GDP per capita 

2.3.3 Inflation 

3 Cards and Payments Industry Share Analysis 

3.1 Industry Overview 

3.1.1 Credit transfers 

3.1.2 Check payments 


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3.1.3 Cash transactions 

3.1.4 Card transactions 

3.1.5 Direct debits 

4 Regulatory Framework and Card Fraud Statistics 

4.1 Regulatory Framework 

4.1.1 Law on credit, debit, prepaid, other cards and electronic payment financing 

4.1.2 Consumer protection 

4.1.3 Anti-money laundering and counter terrorism financing (AML/CTF) 

4.1.4 Foreign direct investment (FDI) regulations 

4.2 Card Fraud Statistics 

4.2.1 Card-not-present fraud 

4.2.2 Counterfeit card fraud 

4.2.3 Lost or stolen card fraud 

4.2.4 Card ID theft 

5 Emerging Consumer Attitudes and Trends 

5.1 Industry Segmentation and Targeting 

5.1.1 Retail segment 

5.1.2 Corporate segment 

5.2 Travel and Tourism Spending 

5.2.1 Outbound tourist trips 


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5.2.2 Outbound tourist spending 

6 Analysis of Card Payments and Growth Prospects 

6.1 Channel Share Analysis by Card Category 

6.2 Size of and Forecast for the Card Payments Channel 

6.2.1 Analysis by number of cards in circulation 

6.2.2 Analysis by transaction value 

7 Analysis of Credit Card Payments and Growth Prospects 

7.1 Overall Category Size and Forecast 



7.1.3 Analysis by transaction volume 

7.2 Transaction Share Analysis by Channel 



7.3 Personal Credit Cards Segment Size and Forecast 




7.4 Commercial Credit Cards Segment Size and Forecast 



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7.5 Competitive Landscape 

7.5.1 Scheme share analysis 

7.5.2 Issuer share analysis 

8 Analysis of Debit Card Payments and Growth Prospects 





8.2 Transaction Share Analysis by Channel 



8.3 Competitive Landscape 

8.3.1 Scheme share analysis 

8.3.2 Issuer share analysis 

9 Analysis of Prepaid Card Payments and Growth Prospects 





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10 Merchant Acquiring 

11 Company Profiles of Card Issuers 

11.1 Banesco Banco Universal, CA (Banesco) 

11.1.1 Key financials 

11.1.2 Card portfolio 

11.1.3 Strategies 

11.2 Banco de Venezuela 



11.3 Banco Mercantil Universal (Mercantil) 




11.4 BBVA Provincial 




11.5 Bancaribe 




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12 Appendix 

12.1 Methodology 

12.2 Contact Timetric 

12.3 About Timetric 

12.4 Timetric’s Services 

12.5 Definitions 

12.6 Disclaimer 

List of Tables 

Table 1: Venezuela – Payment Channels (VEF Million), 2009–2013 

Table 2: Venezuela – Market-Entry Strategies of Foreign Banks 

Table 3: Venezuela – Card Fraud Value (VEF Million), 2009–2013 

Table 4: Venezuela – Cards for High-Income Customers 

Table 5: Venezuela – Cards for Students and Young Population 

Table 6: Venezuela – Cards for Shoppers 

Table 7: Venezuela – Cards Offered for Corporate Customers 

Table 8: Venezuela – Card Payments Channel by Card Category (Million), 2009– 

2018 


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Table 9: Venezuela – Card Payments Channel Size by Volume of Cards (Million), 

2009–2018 

Table 10: Venezuela – Card Payments Channel Size by Transaction Value (VEF 

Billion), 2009–2018 

Table 11: Venezuela – Card Payments Channel Size by Transaction Value (US$ 

Billion), 2009–2018 

Table 12: Venezuela – Credit Cards Category Size by Volume of Cards (Million), 

2009–2018 

Table 13: Venezuela – Credit Cards Category Size by Transaction Value (VEF 

Billion), 2009–2018 

Table 14: Venezuela – Credit Cards Category Size by Transaction Value (US$ 

Billion), 2009–2018 

Table 15: Venezuela – Credit Cards Category Size by Transaction Volume 

(Million), 2009–2018 

Table 16: Venezuela – Personal Credit Cards Segment Size by Volume of Cards 

(Million), 2009–2018 

Table 17: Venezuela – Personal Credit Cards Segment Size by Transaction Value 

(VEF Billion), 2009–2018 

Table 18: Venezuela – Personal Credit Cards Segment Size by Transaction Value 

(US$ Billion), 2009–2018 

Table 19: Venezuela – Personal Credit Cards Segment Size by Transaction 

Volume (Million), 2009–2018 

Table 20: Venezuela – Commercial Credit Cards Segment Size by Volume of Cards 

(Thousand), 2009–2018 

Table 21: Venezuela – Commercial Credit Cards Segment Size by Transaction 

Value (VEF Billion), 2009–2018 


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Value (US$ Million), 2009–2018 



Table 24: Venezuela – Debit Cards Category Size by Volume of Cards (Million), 

2009–2018 

Table 25: Venezuela – Debit Cards Category Size by Transaction Value (VEF 

Billion), 2009–2018 

Table 26: Venezuela – Debit Cards Category Size by Transaction Value (US$ 

Billion), 2009–2018 

Table 27: Venezuela – Debit Cards Category Size by Transaction Volume 

(Million), 2009–2018 

Table 28: Venezuela – Prepaid Cards Category Size by Volume of Cards (Million), 

2009–2018 

Table 29: Venezuela – Prepaid Cards Category Size by Transaction Value (VEF 

Billion), 2009–2018 

Table 30: Venezuela – Prepaid Cards Category Size by Transaction Value (US$ 

Billion), 2009–2018 

Table 31: Banesco – Key Financial Indicators (VEF Million), Year Ended 

December, 2012–2013 

Table 32: Banesco – Card Portfolio and Key Features 

Table 33: BDV – Card Portfolio and Key Features 

Table 34: Mercantil – Key Financial Indicators (VEF Million), Year Ended 


Table 35: Mercantil – Card Portfolio and Key Features 


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Table 36: BBVA Group – Key Financial Indicators (EUR Million), Year Ended 


Table 37: BBVA Provincial – Card Portfolio and Key Features 

Table 38: Bancaribe – Key Financial Indicators (VEF Million), Year Ended 


Table 39: Bancaribe – Card Portfolio and Key Features 

Table 40: Key Definitions 

List of Figures 

Figure 1: Benchmarking the Venezuelan Card Payment Channel Against Other 

Regional Markets 

Figure 2: Venezuela – Growth of Various Card Categories (%), 2009–2018 

Figure 3: Venezuela – ATM Volume and Penetration, 2009–2018 

Figure 4: Venezuela – POS Volume and Penetration, 2009–2018 

Figure 5: Venezuela – EMV Cards Volume (Thousand), 2010–2013 

Figure 6: Venezuela – Internet Penetration (Internet Users per 100 Inhabitants), 

2009–2018 

Figure 7: Venezuela – Retail Sales Value (VEF Billion), 2009–2018 

Figure 8: Venezuela – E-Commerce Value (VEF Billion), 2009–2013 

Figure 9: Venezuela – Real GDP Growth (%), 2009–2018 

Figure 10: Venezuela – Nominal GDP Per Capita (US$), 2009–2018 


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Figure 11: Venezuela – Inflation (Consumer Price Inflation) Rate (%), 2009–2018 

Figure 12: Venezuela – Shares of Different Payment Channels (%), 2009 and 

2013 

Figure 13: Venezuela – Shares of Card Fraud Types In Terms of Transaction 

Value (%), 2009 and 2013 

Figure 14: Venezuela – Card-Not-Present Fraud Value (VEF Million), 2009–2013 

Figure 15: Venezuela – Counterfeit Card Fraud Value (VEF Million), 2009–2013 

Figure 16: Venezuela – Lost or Stolen Card Fraud Value (VEF Million), 2009– 

2013 

Figure 17: Venezuela – Card ID Theft Value (VEF Million), 2009–2013 

Figure 18: Venezuela – Cards and Payments Industry Segmentation by Card Type 

Figure 19: Venezuela – Volume of Outbound Tourist Trips (Thousand), 2009– 

2018 

Figure 20: Venezuela – Outbound Tourist Spending (VEF Billion), 2009–2018 

Figure 21: Venezuela – Card Payments Channel by Card Category (%), 2009– 

2018 

Figure 22: Venezuela – Card Payments Channel Size by Volume of Cards 

(Million), 2009–2018 

Figure 23: Venezuela – Card Payments Channel Size by Transaction Value (VEF 

Billion), 2009–2018 

Figure 24: Venezuela – Credit Cards Category Volume and Penetration, 2009– 

2018 

Figure 25: Venezuela – Credit Cards Category Size by Volume of Cards (Million), 

2009–2018 


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Figure 26: Venezuela – Credit Cards Category Size by Transaction Value (VEF 

Billion), 2009–2018 

Figure 27: Venezuela – Credit Cards Category Size by Transaction Volume 

(Million), 2009–2018 

Figure 28: Venezuela – Credit Cards Category Transaction Value Share Analysis 

by Channel (VEF Billion), 2009–2018 

Figure 29: Venezuela – Credit Cards Category Transaction Volume Share Analysis 

by Channel (Million), 2009–2018 

Figure 30: Venezuela – Personal Credit Cards Segment Size by Volume of Cards 

(Million), 2009–2018 

Figure 31: Venezuela – Personal Credit Cards Segment Size by Transaction Value 

(VEF Billion), 2009–2018 

Figure 32: Venezuela – Personal Credit Cards Segment Size by Transaction 


Figure 33: Venezuela – Commercial Credit Cards Segment Size by Volume of 

Cards (Thousand), 2009–2018 

Figure 34: Venezuela – Commercial Credit Cards Segment Size by Transaction 

Value (VEF Billion), 2009–2018 

Figure 35: Venezuela – Commercial Credit Cards Segment Size by Transaction 


Figure 36: Venezuela – Credit Cards Category Share by Scheme in Terms of 

Transaction Value (%), 2013 

Figure 37: Venezuela – Credit Cards Category Share by Issuer in Terms of 


Figure 38: Venezuela – Debit Cards Category Volume and Penetration, 2009– 

2018 


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Figure 39: Venezuela – Debit Cards Category Size by Volume of Cards (Million), 

2009–2018 

Figure 40: Venezuela – Debit Cards Category Size by Transaction Value (VEF 

Billion), 2009–2018 

Figure 41: Venezuela – Debit Cards Category Size by Transaction Volume 

(Million), 2009–2018 

Figure 42: Venezuela – Debit Cards Category Transaction Value Share Analysis by 

Channel (VEF Billion), 2009–2018 

Figure 43: Venezuela – Debit Cards Category Transaction Volume Share Analysis 

by Channel (Million), 2009–2018 

Figure 44: Venezuela – Debit Cards Category Share by Scheme in Terms of 


Figure 45: Venezuela – Debit Cards Category Share by Issuer in Terms of 


Figure 46: Venezuela – Prepaid Cards Category Volume and Penetration, 2009– 

2018 

Figure 47: Venezuela – Prepaid Cards Category Size by Volume of Cards (Million), 

2009–2018 

Figure 48: Venezuela – Prepaid Cards Category Size by Transaction Value (VEF 

Billion), 2009–2018 

Figure 49: Venezuela – Share of Merchant Acquirers in Terms of Transaction 

Volume at POS Terminals, 2013 


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To know more on Venezuela's Cards and Payments Industry: Emerging 

Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive 

Landscape 

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