COUNTRY REPORTS

Country reports:
Brazil, Finland, Hong Kong

 Key card market data for Brazil, Finland and Hong Kong

Brazil

Credit, charge cards remain preferred card type for payments
Brazil is traditionally a cash-driven economy, with cash accounting for 72.0% of total payment transaction volume in 2020. Government initiatives and bank efforts mean consumer awareness of and confidence in digital payments are growing, with Brazilians gradually shifting to electronic payment methods. The government has taken a number of steps to boost financial inclusion and promote electronic payments in the country, including expanding banking infrastructure in rural regions, appointing banking correspondents, and introducing a regulation allowing consumers to open bank accounts through digital channels.

With the necessary payment infrastructure in place – which includes ubiquitous ATMs and the highest proportion of POS terminals among its regional peers – consumers are gradually becoming more aware of the benefits of payment cards.

The frequency of card payments increased during the period 2016–20, rising from 27.4 times per card per year as of 2016 to 38.8 in 2020. Over the period 2020–24, ecommerce growth and the emergence of contactless technology will help drive growth in the payment card market.

The outbreak of Covid has affected the economy, impacting all sectors (including cards and payments) due to a decline in overall consumer spending. However, the pandemic has also highlighted the importance of non-cash payment tools, which is pushing electronic payments in the country.

Bank incentives boost debit card usage
Debit card penetration is high in Brazil, and on average every Brazilian holds at least one debit card, supported by a growing banked population and financial inclusion initiatives. While debit card payments accounted for 32.7% of total debit card transaction value in 2020, the frequency of debit card payments stands at 33.6 in 2020 – higher than for ATM cash withdrawals (10.3).

Banks offer benefits such as discounts and reward points as well as capping debit card interchange fees, which has boosted debit card payments.

Installment facilities boost credit card use
Despite lower penetration, credit and charge cards accounted for 63.6% of total card payments by value in 2020. Credit and charge card payment frequency stood at 46.6 times per card per year in 2020 – higher than for debit cards.

Banks are offering benefits in the form of reward programmes and cashback to encourage card usage. Growth has also been supported by the availability of installment facilities for big-ticket purchases on credit cards. The decrease in credit card interest rates charged by leading banks will further aid growth in this space.

Covid will further drive ecommerce growth
Brazil’s ecommerce market recorded a robust compound annual growth rate (CAGR) of 19.1% for the years 2016-2020, growing from BRL71.3bn ($17.74bn) in 2016 to $35.72bn in 2020. Growth has been supported by rising internet and mobile penetration as well as the growing consumer preference for online shopping. Lockdowns and social distancing amid Covid have further accelerated ecommerce growth. As per the Brazilian Association of Electronic Commerce, ecommerce sales increased 57% between January and August 2020.

The high unbanked population offers huge potential for prepaid card market growth
Prepaid card uptake gained traction over the four years to 2020, with the number of prepaid cards in circulation in Brazil recording a CAGR of 80.4%.

Targeting the large unbanked population in the country, in July 2020 Banco do Brasil launched the Visa-branded OuroCard prepaid card. The card can be used to make purchases at merchant stores in Brazil and overseas. The card also comes with a reward programme.

POS terminals numbers rise strongly
The number of POS terminals recorded a strong CAGR of 26.6% for 2016-2020, increasing from 4.9 million in 2016 to 12.6 million in 2020. This figure is anticipated to reach over 20 million in 2024. The growing acceptance of cashless transactions among Brazilian retailers has led to a rise in the installation of POS terminals throughout the country.

With a growing number of retailers accepting card -based payments, POS solution providers are launching new mobile POS products in Brazil. In January 2020, Ingenico launched Moby/6500, a mobile POS targeted at SMEs. Companies such as SumUp and Verifone also offer mobile POS solutions in the country.

Brazil's Cards and Payments Industry
Table 1: Value of Credit Transfers ($bn) in Brazil, 2016–2024
YearCredit Transfers
20168,955.4
201913,084.3
2020e13,954.4
2024f18,325.7
Source: Banco de Brazil, Bank for International Settlements and GlobalData research

Table 2: Value of Payment Cards ($bn) in Brazil, 2016–2024
YearPayment cards
2016281.1
2019445.8
2020e485.1
2024f730.8
Source: Banco de Brazil, Bank for International Settlements and GlobalData research

Table 3: Value of Cheque Payments ($bn) in Brazil, 2016–2024
YearCheque Payments
2016544.2
2019378.6
2020e329.8
2024f248.0
Source: Banco de Brazil, Bank for International Settlements and GlobalData research

Table 4: Brazil's Debit Card Market Share by Schemes ($bn), 2020

2020e
Mastercard 43.1
Elo29.3
Others 27.6
Total100.0
Source: GlobalData research

Table 5: Brazil's Debit Card Market Share by Issuers ($bn), 2020

2020e
Caixa Econômica Federal25.8
Banco Bradesco24.2
Banco do Brasil20.6
Others29.4
Total100.0
Source: GlobalData research

Table 6: Brazil's Credit & Charge Card Market Share by Schemes ($bn), 2020

2020e
Mastercard58.7
Visa30.7
Others10.6
Total100.0
Source: GlobalData research

Table 7: Brazil's Credit & Charge Card Market Share by Issuers ($bn), 2020

2020e
Itau Unibanco29.4
Banco do Brasil19.7
Banco Bradesco17.7
Others33.2
Total100.0
Source: GlobalData research

Table 8: Brazil's Payment Cards by Type of Card (Million), 2016–2024

Debit CardsCredit & Charge Cards
2016318.4148.9
2019348.8221.5
2020e353.8236.3
2024f392.7301.5
Source: GlobalData research

Table 9: Brazil's Card Transaction Value by Channel ($bn), 2016–2024

ATMPOS
2016325.9281.1
2017339.4311.8
2018332.7356.9
2019356.5445.8
2020e367.4485.1
2021f412.2568.5
2022f440.8634.2
2023f459.9690.9
2024f477.1730.8
Source: Banco de Brazil and GlobalData research

Table 10: Brazil's Card Transaction Volume by Channel (Million), 2016–2024

ATMPOS
20163,449.012,809.9
20173,567.014,444.1
20183,407.016,583.9
20193,585.020,918.3
2020e3,670.022,877.9
2021f4,004.126,810.5
2022f4,187.929,777.2
2023f4,315.432,397.5
2024f4,385.634,330.6
Source: Banco de Brazil and GlobalData research

Table 11: Number of ATMs and POS Terminals in Brazil (000s), 2016–2024

ATMPOS
2016180.24,922.6
2017175.64,786.5
2018175.68,497.5
2019171.311,203.3
2020e166.512,637.8
2021f167.915,185.4
2022f168.817,439.6
2023f169.419,175.5
2024f169.720,463.0
Source: Banco de Brazil and GlobalData research

Finland

Debit dominates payments landscape
Cards are the preferred mode of payment among Finnish consumers, accounting for 48.3% of the total payment transaction volume in 2020. Convenience in the usage of payment cards, enhanced security and the growing adoption of contactless have supported the growth of card-based transactions.

The frequency of use of card was estimated at 210.6 times per card in 2020 – much higher than major developed markets such as the UK (139.6), the US (107.0) and Germany (57.8). Debit cards are the most preferred card type for payments in Finland, with debit card payments accounting for 84.4% of the total value of card payments in 2020; the frequency of debit card payments accounted for 210.6 yearly transactions in 2020, which was significantly higher in comparison to credit cards (33.2).

Meanwhile, rising ecommerce and the adoption of contactless payments will further aid the transition towards a cashless society. The outbreak of Covid has affected the economy, impacting all sectors (including cards and payments) due to a decline in overall consumer spending. However, the pandemic has also highlighted the importance of non-cash payment tools, which will further boost the usage of electronic payments in the country.

Debit usage among the highest in the world
Debit cards are used extensively by Finnish consumers. With Finland having a 99.8% adult banked population and consumers keen to use banking products and services, the frequency of debit card payments in Finland stands at 210.6 in 2020 – among the highest in the world. Debit cards are anticipated to continue to lead the Finnish payment card market over the next few years supported by the increasing migration of low-value cash payments to debit-card payments. This trend will also be supported by the gradual adoption of contactless technology, with all the major banks now offering contactless debit cards in Finland.

Rising adoption of contactless payments
The rising adoption of contactless payments during the period 2016–2020 drove the overall card payments. To benefit from the growing adoption of contactless cards, all the leading banks in Finland are offering cards with contactless technology. According to the central bank, 913 million contactless card payments were made in 2019, exceeding traditional chip and pin card transactions for the first time. The number of contactless cards was estimated at 9.6 million in 2020 –up from 5.2 million in 2016 –at a CAGR of 16.6%. This figure is anticipated to reach 10.7 million by 2024.

Pandemic aids ecommerce growth
The ecommerce market in Finland grew from €8.5bn ($9.5bn) in 2016 to $15.9bn in 2020, at a CAGR of 13.7%. High internet penetration, coupled with a well-developed logistics infrastructure and a consumer preference for convenience, was attributed to the growth of ecommerce market. Lockdown and social distancing norms amid Covid have further accelerated ecommerce growth in Finland. The rise in ecommerce will benefit online payment solutions such as PayPal, Klarna, Apple Pay and Google Pay.

Card acceptance at POS terminals grows
Meanwhile, the number of POS terminals is estimated to increase at a CAGR of 3.1% for the period 2020-2024. This is supported by improving payment card awareness, rising merchant acceptance and lower interchange fees.

Payment providers are offering innovative products such as mobile POS terminals in Finland. Payment solution provider ZirooPay offers a mobile card reader, enabling merchants to accept card payments without needing an internet connection. The solution provider enables this by routing the payment transaction through a pre-configured GSM channel mobile network.

Meanwhile, in September 2019, Denmark-based payment group Nets collaborated with UnionPay International to enable its merchants to accept payments via UnionPay card in Finland.

Finland's Cards and Payments Industry
Table 1: Value of Credit Transfers ($bn) in Finland, 2016–2024
YearCredit Transfers
20162,843.4
20193,085.2
2020e2,983.9
2024f3,193.9
Source: ECB and GlobalData research

Table 2: Value of Payment Cards ($bn) in Finland, 2016–2024
YearPayment Cards
201651.4
201960.8
2020e61.5
2024f75.5
Source: ECB and GlobalData research

Table 3: Value of Cheque Payments ($bn) in Finland, 2016–2024
YearCheque Payments
20162.523
20190.063
2020e0.007
2024f0.001
Source: ECB and GlobalData research

Table 4: Finland's Debit Card Market Share by Schemes ($bn), 2020

2020e
Visa59.1
Mastercard40.9
Total100.0
Source: GlobalData research

Table 5: Finland's Debit Card Market Share by Issuers ($bn), 2020

2020e
OP Bank34.3
S-Pankki19.6
Nordea13.5
Others32.6
Total100.0
Source: GlobalData research

Table 6: Finland's Credit & Charge Card Market Share by Schemes ($bn), 2020

2020e
Mastercard64.1
Visa32.1
Others3.8
Total100.0
Source: GlobalData research

Table 7: Finland's Credit & Charge Card Market Share by Issuers ($bn), 2020

2020e
Nordea34.6
OP Bank24.1
S-Pankki18.2
Others23.1
Total100.0
Source: GlobalData research

Table 8: Finland's Payment Cards by Type of Card (Million), 2016–2024

Debit CardsCredit & Charge Cards
20167.54.9
20198.64.7
2020e8.64.6
2024f9.34.8

Source: GlobalData research

Note: Data for charge cards is not available in Finland


Table 9: Finland's Card Transaction Value by Channel ($bn), 2016–2024

ATMPOS
201615.151.4
201714.053.3
201813.357.3
201912.260.8
2020e10.961.5
2021f10.064.9
2022f9.468.5
2023f8.972.0
2024f8.675.5
Source: ECB and GlobalData research

Table 10: Finland's Card Transaction Volume by Channel (Million), 2016–2024

ATMPOS
2016127.61,536.0
2017113.21,643.1
2018103.41,828.7
201992.51,947.0
2020e79.71,968.5
2021f71.62,080.6
2022f65.72,193.2
2023f61.12,305.3
2024f57.92,410.9
Source: ECB and GlobalData research

Table 11: Number of ATMs and POS Terminals in Finland (000s), 2016–2024

ATMPOS
20161.9151.8
20171.9152.8
20182.0157.2
20192.0164.2
2020e2.0167.9
2021f2.0174.3
2022f2.1179.9
2023f2.1185.2
2024f2.1189.8
Source: GlobalData research

Hong Kong

Octopus drives local prepaid card sector
The payment card market in Hong Kong is mature despite a strong inclination towards cash, which accounted for 65.2% of total payment transaction volume in 2020. Payment cards are the second most popular payment instrument in Hong Kong, with each individual holding more than three cards in 2020.

This well-penetrated payment card market is a result of consistent efforts made by the government and financial institutions to promote electronic methods of payments by introducing measures such as waiving minimum balance fees on bank accounts, launching digital-only banks, and developing and expanding payment acceptance infrastructure.

As a result, the frequency of card payments increased during the period 2016–20, rising from 27.5 times per card per year in 2016 to 38.5 times in 2020. This figure is set to reach 48.6 by 2024.

Besides cards, customers are increasingly embracing alternative payments including the likes of AlipayHK, WeChat Pay, PayPal, and Google Pay, as well as other innovative payment methods such as self-checkout stores, cryptocurrencies, and biometric payments. Covid has further propelled the shift in preference towards cashless payment methods, as consumers are moving away from cash to avoid potential disease vectors.

Credit and charge cards are the preferred card type
Credit and charge cards accounted for 67.9% of total card payment value in 2020. Hong Kong has the highest credit and charge card penetration among its peers, with each individual holding almost three credit cards. In this mature market, banks are focusing on boosting card usage by offering installment plans, discounts, reward programmes, and cashback. Credit and charge card payments have registered strong growth both in terms of volume and value, recording respective compound annual growth rates (CAGRs) of 10.7% and 6.1% in the four year period 2016-2020.

The prepaid card market is driven by Octopus
The prepaid card market in Hong Kong is consistently rising, with transaction value and the number of prepaid cards registering healthy 2016-2020 CAGRs of 5.1% and 2.3% respectively –a trend that is anticipated to continue over the four-year period 2020-2024. This growth can be attributed to the popularity of stored-value smart cards issued by non-banking company Octopus. Indeed, in Hong Kong the majority of prepaid cards are issued by non-banking companies.

Pandemic boosts ecommerce growth
Hong Kong’s ecommerce market is consistently developing. It registered a strong 2016-2020 CAGR of 13.1%, rising from HK$97.7bn ($12.6bn) in 2016 to $20.6bn in 2020. High internet and smartphone penetration and increasing consumer confidence in online transactions have driven this growth.

In addition, the share of m-commerce in the overall Hong Kong ecommerce market accounts for 57.4% in 2020. The outbreak of Covid has further boosted online purchases of essential goods as this helps consumers avoid close social contact.

Contactless payment card holding is high in Hong Kong
Awareness and usage of contactless payment cards is high in Hong Kong, with the number of contactless payment cards rising from 32.8 million in 2016 to an estimated 35.6 million in 2020 at a CAGR of 2.1%. This figure is anticipated to rise further to 38.7 million by 2024. The increasing number of retailers accepting contactless payments is responsible for driving contactless payment card transaction values and volumes.

To capitalise on the growing adoption of contactless payments, in May 2020 Hong Kong-based public transportation provider Long Win Bus Company enabled consumers to use contactless Mastercard, Visa, and China UnionPay credit cards to pay for bus fares. Besides contactless payments cards, customers can also use digital wallets such as Alipay and UnionPay to scan the QR code present on bus e-payment terminals to make payments.

Improved payment infrastructure drives electronic payments
While the number of POS terminals in Hong Kong recorded only a moderate 2016-2020 CAGR of 3.2%, the volume of card payments registered strong growth with a CAGR of 9.7%, establishing the growing preference of consumers for electronic methods of payment.

To boost the acceptance of card payments for small merchants as well as taxi drivers, in August 2020 Octopus Cards Limited launched the Octopus Mobile POS in Hong Kong. The terminal can accept all forms of Octopus payments –including Octopus physical cards and Octopus cards linked to mobile wallets such as Apple Pay, Samsung Pay, and Octopus Wallet.

Untitled Document
Hong Kong's Cards and Payments Industry
Table 1: Value of Credit Transfers ($bn) in Hong Kong, 2016–2024
YearCredit Transfers
2016155.4
2019197.1
2020e202.3
2024f241.9
Source: Hong Kong Monetary Authority, Bank for International Settlements, World Bank and GlobalData research

Table 2: Value of Payment Cards ($bn) in Hong Kong, 2016–2024
YearPayment Cards
2016109.7
2019135.2
2020e136.8
2024f159.4
Source: Hong Kong Monetary Authority, Bank for International Settlements, World Bank and GlobalData research

Table 3: Value of Cheque Payments ($bn) in Hong Kong, 2016–2024
YearCheque Payments
20161,032.2
20191,285.3
2020e1,235.8
2024f1,134.6
Source: Hong Kong Monetary Authority, Bank for International Settlements, World Bank and GlobalData research

Table 4: Hong Kong's Debit Card Market Share by Schemes ($bn), 2020e

2020e
EPS84.4
Others15.6
Total100.0
Source: GlobalData research

Table 5: Hong Kong's Debit Card Market Share by Issuers ($bn), 2020e

2020e
HSBC40.2
Bank of China13.1
Standard Chartered10.2
Others36.5
Total100.0
Source: GlobalData research

Table 6: Hong Kong's Credit & Charge Card Market Share by Schemes ($bn), 2020e

2020e
China UnionPay60.4
Visa19.5
Others20.1
Total100.0
Source: GlobalData research

Table 7: Hong Kong's Credit & Charge Card Market Share by Issuers ($bn), 2020e

2020e
HSBC36.3
Standard Chartered11.3
Bank of China10.8
Others 41.6
Total100.0
Source: GlobalData research

Untitled Document
Table 8: Hong Kong's Payment Cards by Type of Card (Million), 2016–2024

Debit CardsCredit & Charge Cards
20165.919.2
20196.219.7
2020e6.219.8
2024f6.420.8
Source:GlobalData research

Table 9: Hong Kong's Card Transaction Value by Channel ($bn), 2016–2024

ATMPOS
201622.5109.7
201723.8117.6
201825.7131.2
201926.0135.2
2020e26.1136.8
2021f26.7142.8
2022f27.3148.6
2023f27.8154.2
2024f28.2159.4
Source: Hong Kong Monetary Authority and GlobalData research

Table 10: Hong Kong's Card Transaction Volume by Channel (Million), 2016–2024

ATMPOS
201653.9689.7
201756.0752.0
201856.1856.3
201958.3973.2
2020e59.0999.6
2021f61.01,081.7
2022f62.91,163.1
2023f64.71,243.6
2024f66.21,320.7
Source: Hong Kong Monetary Authority and GlobalData research

Table 11: Number of ATMs and POS Terminals in Hong Kong (000s), 2016–2024

ATMPOS
20163.3155.5
20173.3162.0
20183.4168.5
20193.4174.7
2020e3.4176.6
2021f3.4182.0
2022f3.5186.9
2023f3.5191.2
2024f3.5195.2
Source: Hong Kong Monetary Authority and GlobalData research

Kenya's Cards and Payments Industry
Table 1: Value of Payment Cards ($bn) in Kenya, 2016–2024
YearPayment Cards
20160.9
20191.8
2020e1.6
2024f2.7
Source: Central Bank of Kenya and GlobalData research

Table 2: Value of Cheque Payments ($bn) in Kenya, 2016–2024
YearCheque Payments
201626.0
201925.7
2020e25.1
2024f23.6
Source: Central Bank of Kenya and GlobalData research

Table 3: Kenya's Debit Card Market Share by Schemes ($bn), 2020e
2020e
Visa57.1
Mastercard42.9
Total100.0
Source: GlobalData research

Table 4: Kenya's Debit Card Market Share by Issuers ($bn), 2020e
2020e
Equity Bank30.3
Cooperative Bank of Kenya19.7
KCB11.8
Others38.2
Total100.0
Source: GlobalData research

Table 5: Kenya's Credit & Charge Card Market Share by Schemes ($m), 2020e
2020e
Visa58.5
Mastercard38.9
Others2.6
Total100.0
Source: GlobalData research

Table 6: Kenya's Credit & Charge Card Market Share by Issuers ($m), 2020e
2020e
Absa Bank43.8
Cooperative Bank of Kenya26.5
Standard Bank9.4
Others20.3
Total100.0
Source: GlobalData research