Venezuela: card payments channel is on the rise - report

Moreover, it is anticipated to grow to 6.74% CAGR to reach 49.1 million cards in 2018, according to the same reports issued by the market research agency JSB Market Research.

In terms of transaction value, the card payments channel grew VEF 189.5 billion (USD 88.3 billion) in 2009 to VEF 845.3 billion (USD 138.2 billion) in 2013, at a review-period CAGR of 45.32% and is anticipated to post a forecast-period CAGR of 21.5%, to reach VEF 2.5 trillion (USD 139 billion) in 2018.

Banks in Venezuela are focusing on offering banking and financial services to customers residing in urban and rural areas, through low-cost channels such as internet and mobile banking and self-service terminals. This strategy serves several purposes: banks are able to reduce branch establishment costs, while customers benefit from not waiting in long queues, and can also avoid being robbed.

In terms of transaction value, the debit and credit card categories recorded respective review-period CAGRs of 50.87% and 27.62%. In 2013, the value of debit card transactions at POS terminals was marginally greater than at ATMs, representing 51.8% of the total debit cards transaction value. Similarly, the value of credit cards transactions at POS terminals was greater than that at ATMs, representing 95% of the total credit cards transaction value.

The increasing use of debit and credit cards at POS terminals and the growing need for credit among middle-class families are anticipated to increase card transaction values over the forecast period.