An Increase in Minimum Wage and Yearly Salaries Will See a Growth in Economy and a Knock on Positive Effect on the Card Payments Channel by 2018, According to a New Study on ASDReports

Friday 5 September 2014, Amsterdam

Check it out – Venezuela’s Cards and Payments Industry! The new research report from Timetric, examining emerging opportunities, trends, size, drivers, strategies, products and the competitive landscape of the cards and payments industry in Venezuela. With insights and analysis on everything from future growth areas to regulations governing the industry, this report the competitive landscape and consumer attitudes expected to reshape the market, and is an essential tool for anyone with a stake in the exciting and rapidly changing world of cards and payments in this emerging region!

The difference:
•    Premium information: Profiling the major banks in the cards and payments industry, details the marketing strategies used by various institutions, outlines the current regulatory framework and provides forecast figures for 2018!
•    On the go: Make strategic business decisions using top-level historic and forecast market data related to the region’s cards and payments industry and each market within it
•    A pretty penny: Assess the competitive dynamics in Venezuela's cards and payments industry and gain insights in to the marketing strategies used for selling various card types

Report Highlights:
The global financial crisis severely affected the Venezuelan economy, with the GDP growth contracting to reach under -3% 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 (to 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 over 24 million cards in circulation in 2009 to more than 34 million in 2013, at a compound annual growth rate (CAGR) of under 9% and is anticipated to further post a CAGR of less than 7% over the forecast period, to reach 49 million in 2018.

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.