Credicard sees credit card segment growing 15%

Tuesday, October 1, 2002

Brazil's credit card industry likely billed 5.4bn reais (US$1.44bn) in September, up 15% from the same month last year, according to a monthly study by Brazilian credit card issuer Credicard.

In relation to August this year the amount represents a drop of 6.6% due to Father's Day.

For September transaction volume is expected to reach 73 million, with an average ticket of 74 reais. A total of 39.6 million credit cards are thought to have circulated during the month, up 300,000 from August.

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The company estimates that the segment billed 48.7bn reais for the first nine months of 2002, up 15.7% over last year.

The credit card industry is growing faster than Brazil's economy, due to higher credit card use and its increasing substitution of other forms of payment, Credicard said.

The company expects the sector will bill 67.8bn reais in 2002, up 15.7% compared to 2001.

In the corporate credit card segment, Credicard sees 85.6% growth over the next two years. In 2000 this niche represented 3.7% of the total credit card market, and will rise to 4.9% by the end of this year on total billing of 3.32bn reais.