A comprehensive overview of the cards, payments and consumer banking market in Colombia.
Colombia's payment ecosystem is well-developed and a new instant payments system was launched in early 2020 which is set to develop it further.
Banking correspondents and mobile penetration are both helping to improve financial inclusion. The government is also developing policies to continue to expand digital payments, such as the policy for the discontinuation of the Financial Transactions Tax by 2022.
The impact of Covid-19 has resulted in a surge of online payment popularity throughout lockdown, while credit card spend has fallen due to restrictions on foreign travel.
How banking agents and mobile penetration are advancing financial inclusion in Colombia.
How mobile payment systems are developing.
Where digital payment opportunities lie.
Why co-brand partnerships are so important to the Colombian cards market.
TABLE OF CONTENTS
Demographics and the economy
Key retail banks and issuers
Acquiring and processing
Regulatory and other Colombia cards market information
Appendices: Card Payments Data
Appendix I: Demographics and the economy
Appendix II: Payments environment
Appendix III: Cards market data
Appendix IV: Mobile payments data
Appendix V: Profit pool
Appendix VI: Card networks
Appendix VII: Key retail banks and issuers
Appendix VIII: Acquirers and processing
Appendix IX: Online acquiring data
Demographics and Economy
The country has a relatively young population, with an average age of 31 and a quarter of the population less than half that age. Life expectancy is on a par with the other leading democracies of the region.
There were 49.14 million bank-issued payment cards at the end of 2019: 16.05 million credit cards and 33.09 million debit cards. This means that there was an average of 1.31 payment cards per adult at the end of 2019.
As of 2019, card penetration in terms of the number of cards per 100 adults, reached 43 for credit cards and 88 for debit cards in 2019. This low card penetration suggests a strong business opportunity to grow the cards business.
In early 2020, a new instant payments system, Transfiya, was launched. As of mid-July, six financial institutions were affiliated, including MOVii and Daviplata.
Pre-tax profit in the Colombian credit card industry grew 35% between 2013 and 2019, from $564 million to $761 million. Net interest revenue was the greatest single contributor to total revenue in 2019, accounting for an estimated 47.7% of the total.
Four international payment card networks operate in Colombia: Visa, Mastercard, Diners Club and American Express. As of December 2019, there were 19 financial institutions that
issued Visa cards and 17 that issued Mastercard cards.
Key Retail Banks and Issuers
Local financial institutions are the dominant retail banking players and issuers in Colombia, with 66.5% share of cards in issue and a 67.6% share of credit cards outstandings as of December 2019.
Acquiring and Processing
The Colombian acquiring market compares favourably with some other countries in the region in that all ATM and POS networks are fully interconnected. This means cardholders can use all terminals independently of their card brand or issuer
The rate at which Colombian consumers have adopted information technology has been a key driver of the burgeoning e-commerce market. As of December 2019, 67.4% of the total population were internet users, while there were 63.1 personal computers per 100 individuals.
Regulatory and Markets Information
Central bank Banco de la Republica, commonly known as Banrep, is responsible for monetary policy and foreign exchange regulations. A banking licence issued by the Superintendency for Financial Institutions (SFC) is required to perform any deposit-taking activity.
Aval Soluciones Digitales
Banco Agrario de Columbia
Banco AV Villas
Banco de Bogotä
Banco de Occidente
International Finance Corporation
Tuya Finance Company
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