Brazil Cards And Payments Market By Cards and Credit Transfers

Posted by miky santhosh on May 3rd, 2018

Retail

Retail consumers have been classified by their pattern of spending, levels of income, and age, by the organizations in the industry. Banks adopt specific strategies of marketing, launch products, and provide special promotional offers for each segment based on the size and type of the consumer segment. The article deals with the identification of key segments and their targeting

The bracket of individuals with high net worth

Customers having higher incomes are targeted by commercial banks by the provision of debit cards with high cash-withdrawal limits and also higher transaction limits at POS. Additional benefits are also provided. Banco de Brazil, Caiza Economica Federal, and Banco Bradesco, are some of those which provide specifically designed debit cards for high income group of the populace which include benefits such as the extra offer and high limits on withdrawals.

Offering co-branded credit cards through partnerships

Co-branded cards are the biggest trend in the credit card category in the Brazilian cards and payments market. These have enabled banks for distinguishing their products from the conventional credit cards which are offered by their competition. Consumers are also offered striking deals in a wide array of niches of products, which becomes a good reason for getting multiple cards. Some of the companies have formed partnerships for the launch of co-branded cards, such as the Aura-MasterCard credit card formed by the partnership of Cetelem, MasterCard, and Redecard, which has the potential to be used by more than 1.3 million merchants throughout Brazil. Infact, MasterCard has also partnered with telecom service providers for the provision of co-branded cards in Brazil. These cards are targeted towards the customer base of such telecom service providers.

Value added services on card products

For the protection of the interests of consumers, banks provide insurance benefits with credit cards issued newly. For example, the HSBC Bank, on its Premier and Advance credit cards, offers concierge services and insurance of travel. Travel insurance is also provided by the Santander Banks in its Santander Dufry Platinum Card. These provisions ensure that the customers are covered in cases of accidental death. The following are some of the key insurance benefits

• Credit insurance: This insurance offers a renunciation of payment of the due on a credit card in the episode of an accidental death.
• Personal accident insurance: In the event of any accidental death.
• Lost baggage insurance: Banks offers protection for loss of checked luggage.
• Purchase protection: Products purchased using the credit card are insured against harm or loss or theft.

Targeting the low income and unbanked population

Products targeting the groups having lower incomes, retired populace, and the unbanked population, are also offered by leading banks. Instalment based credit cards are offered by Bradesco for low income customers. Banco Postal and Banco Popular provide payment products to individuals living in the remote municipalities of the country, which exceed 4000 in number.

Cards targeting students and the young population

Student designed credit cards are also offered by card providers and banks. There is a substantial young and student population in Brazil, which is attractive to card providers owing to its consumerist lifestyle and their demand for advanced banking products. More than 2 percent of the population in the country belongs in this bracket.

For the capitalization of this sector, student cards are provided by all the leading card issuers in the country. The Bradesco Visa National University Card is offered by Banco Bradesco for college freshman and veterans in Brazil. Th Ourocard International University Card is offered by the Banco de Brasil for students in Brazil.

Corporate segment

Corporate customers are classified on the basis of their specific requirements of service. There are purchase cards offered for the procurement departments, travel cards for frequent travellers, and payroll cards for the finance department. Business manager and employees are provided by corporate cards to evaluate and track the expenditure in areas such as utility payments, travel, office supplies, salaries, and other employment benefits. Additionally, these cards are also inclusive of free travel accident insurance For attracting new business customers, card issuers offer benefits such as no annual fees, and value added services such as purchase protection cover, and free card liability.