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Mobile And Alternative Payments In Mexico





 

NEW YORK, May 8, 2013 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue: Mobile and Alternative Payments in Mexico http://www.reportlinker.com/p01172038/Mobile-and-Alternative-Payments-in-Mexico.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=NoCategoryThe Mexican consumer financial services landscape is in the midst of great change, driven by the confluence of technological innovation, innovative forms of branch expansion, regulatory changes in consumer deposit accounts and bank cards, and a strong push to facilitate mobile banking and payments. Indeed, major banks and telecommunications companies, most notably Telcel, have launched mobile banking and payments platforms that we expect to gain significant traction in 2013. At stake is the transformation of the Mexican banking system—from remittances to redefining branch banking—which can address longstanding financial inclusion disparities by reaching tens of millions of consumers heretofore unable to participate in formal banking services. Mobile and Alternative Payments in Mexico provides industry participants with the wealth of analysis and guidance they need to stay abreast of this quickly evolving market and help gauge its potential. Report coverage highlights include the following:To place mobile payments in context, the report contains broader analysis of Mexican payments and consumer payment choices, including market sizing and issuer shares for credit cards and debit cards, and market sizing guidance on prepaid cards. We also analyze trends related to correspondent banking and branch expansion. Assessment of mobile phone/smartphone penetration, consumer banking relationships, online banking, mobile banking and payment usage and interest, and mobile shopping and financial education interest, supported by results of our proprietary survey of Mexican adult consumers.Insight into remittance senders' banking relationships, method of sending remittances, method of friends or family receiving remittances, and rationales for choosing, supported by proprietary interviews of Mexican immigrant remittance senders residing in the U.S.Insight related to Mexican residents' sending and receiving international and domestic remittances, including sending method and amounts sent, supported by results of our proprietary survey of Mexican adult consumers.We also analyze Mexican mobile banking and payment products and strategies being initiated by major banking and nonbanking players, including Banamex, Banorte, Santader, BBVA Bancomer, Telecomm-Telegraph, MasterCard, Visa, Wells Fargo, Grupo Elektra, and PayPal. To complement the report's emphasis on mobile banking and payments, we include analysis of leading mobile phone operators, including Telcel, Nextel, Iusacell and Telefónica Móviles México. Executive Summary Report Scope Report Summary Market opportunity Mexican payment trends Electronic payments make strides, but cash remains King A strong, entrenched cash culture Even among banked consumers Demand deposits more popular Level I accounts make a splash Growing branches, ATMs and correspondent banks: BBVA Bancomer on top Check transactions decline, while credit cards and debit cards gain Prepaid cards: new to market, but making inroads Proprietary survey results underscore power of cash, potential of banking relationships Mexican internet & mobile phone usage trends Broad-based telecommunications growth Internet usage increasing, but still capped at 36% of population So why not go mobile? Everyone's got one Smartphone penetration approaching 20% Internet-connected adults have smartphones; non-connected don't Among internet-connected, income and region shape mobile & smartphone penetration Telcel reaps 70% subscription share Mexican mobile banking & payment trends Lots of mobile phones, little financial inclusion Government data reveals seeds of online banking usage Proprietary survey analysis: mobile banking/payments have already taken root Account engagement leads payments P2P usage could be 3.7 million But most consumers interested in SMS text payments Other methods also of interest—but technology will need to catch up Interest in mobile shopping and mobile phone public transportation payment Smartphones are strong usage differentiator, but interest among non-smartphone users Mexican mobile remittance trends U.S.to- Mexico remittances top $23 billion but mobile is not a factor Costs declining; internet method is cheapest U.S. immigrant remitter interviews: banked and connected; but banks and internet not used Internet-connected Mexican adults engaging in international remittance/P2P Domestic migrant remittance market undervalued and underserved Domestic remittance/P2P a different demographic animal Key market participant: Telecomm-Telegraph Key market participant: Xoom Key market participant: MoneyGram International, Inc. Key market participant: Western Union Mobile & alternative payments strategies: financial institutions American Express MasterCard Visa Banamex Banorte BBVA Bancomer Santander Mobile & alternative payments strategies: other institutions América Móvil Telefónica Móviles México Grupo Elektra PayPal MercadoPago Chapter 1: Overview Financial system Regulation of the Mexican financial system Mexican payments infrastructure ATM and POS networks Financial institutions participating in consumer banking and payments Commercial banks Development banks Correspondent banks SOFOME SOFOL Telecommunications regulation Increasing mobile telecommunications competition Telecommunications reform bill Chapter 2: Market Opportunity Future is bright for Mexican mobile payments Closing the financial services gap by connecting to 57 million more people Table 2-1: Financial Institution & Mobile and Electronic Payment Opportunity Analysis: 2012 Challenge: the rural and impoverished Table 2-2: Computer, Landline Telephone, Cell Phone and Internet Penetration, by Size of Locality: 2010 Poverty is a part of the equation Graph 2-1: Poverty in Mexico, 2012 Table 2-3: Mexico Urban and Rural Poverty headcount Ratio: 2011 Per capita growth ahead Table 2-4: Historical and Projected GDP and Population Growth in Mexico: 2006-2015 Chapter 3: Mexican Payment Trends Summary analysis Electronic payments make strides, but cash remains King A strong, entrenched cash culture Even among banked consumers Demand deposits more popular Level I accounts make a splash Growing branches, ATMs and correspondent banks: BBVA Bancomer on top Check transactions decline, while credit cards and debit cards gain Prepaid cards: new to market, but making inroads Proprietary survey results underscore power of cash, potential of banking relationships Payments trends Mexico credit card & debit card volume share of GPD is one-fifth that of U.S. Graph 3-1: U.S. And Mexico Credit Card & Debit Card Volume as Percentage of Country GDP: 2008-2012 U.S. and Mexico credit card and debit card volume share gains over time Table 3-1: U.S. And Mexico Credit Card & Debit Card Volume as Percentage of Country GDP: 2008-2012 Demand deposit accounts Transaction accounts, savings accounts and term deposit accounts Demand deposit ratio improves Basic accounts Basic credit cards New account structure plays a role Traditional checking accounts dominate account and balance share Table 3-2: Mexican Demand Deposit Accounts, Account Balance and Share, by Account Type: 2012 Mobile account application BBVA Bancomer draws most Level I accounts and balances Table 3-3: Level I Demand Deposit Accounts, Account Balance and Share, by Bank: 2012 Branch and ATM network analysis Table 3-4: Number of Mexico Bank Branches and ATMs: 2008-2012 But banks reaching more and more via expanding ATM network Banking branch and ATM leaders Table 3-5: Number and Share of Mexico Banking Institution Branches and ATMs: 2012 Correspondent banking takes off Checks Transactions decline; volume flat Table 3-6: Mexico Check Market Size: Cards, Transactions, Dollar Volume: 2008-2012 Credit cards Credit card growth rebound Table 3-7: Mexico Credit Card Market Size: Cards, Transactions, Dollar Volume: 2008-2012 Credit card market share BBVA Bancomer, Banamex and Banorte card share grows Table 3-8: 2012 Credit Card Market Share, by Commercial Bank Issuer: Number of Cards, Balances & Volume Casting a wider net BBVA Bancomer, Banamex and Santander dominate Table 3-9: 2012 Credit Card Market Share, by Commercial Bank/SOFOMER: Volume & Number of Cards Spurring uptake with basic credit cards Debit cards Consistent, healthy card and transaction growth Table 3-10: Mexico Debit Card Market Size: Cards, Transactions, Dollar Volume: 2008-2012 Table 3-11: 2012 Debit Card Market Share, by Commercial Bank Issuer: Number of Cards, Balances & Volume Prepaid cards Historical growth Future growth Growth drivers Bridging prepaid and mobile Other players Other payment mechanisms Credit transfers Electronic & internet banking transfers Internet banking transfers Survey analysis: consumer payments & banking relationships Gender disparities noted Table 3-12: 2013 Mexican Consumer Bank Account, Loan & Payment Card Penetration Rates,by Gender: 2013 Card usage trends upward with age Table 3-13: 2013 Mexican Consumer Bank Account, Loan & Payment Card Penetration Rates,by Age: 2013 Regional disparities Table 3-14: 2013 Mexican Consumer Bank Account, Loan & Payment Card Penetration Rates,by Region: 2013 By household income, credit card usage gap most pronounced Table 3-15: 2013 Mexican Consumer Bank Account, Loan & Payment Card Penetration Rates,by HH Income: 2013 Cash, cash, cash! And then there's everything else Cash a majority choice in six of eight spending categories Debit card and credit card uptake for household goods and appliances Prepaid encroaching on public transportation and mobile phone bills Table 3-16: Cash, Credit Card, Debit Card, Prepaid Card, Check & Money Order Usage,by Consumer Expenditure Category: 2013 Cash loses favor as income increases Table 3-17: Payment Instrument Usage for Groceries, Gas & Restaurant Meals, by HH Income: 2013 Table 3-18: Payment Instrument Usage for HH Goods and Appliances, by HH Income: 2013 Table 3-19: Payment Instrument Usage for Mobile Phone Bills & HH Gas/Electric Bills, by HH Income: 2013 Regional disparities Table 3-20: Payment Instrument Usage for Groceries, Gas & Restaurant Meals, by Region: 2013 Table 3-21: Payment Instrument Usage for HH Goods and Appliances, by HH Income: 2013 Table 3-22: Payment Instrument Usage for Mobile Phone Bills & HH Gas/Electric Bills, by HH Income: 2013 Chapter 4: Mexican Internet & Mobile Phone Usage Trends Summary analysis Broad-based telecommunications growth Internet usage increasing, but still capped at 36% of population So why not go mobile? Everyone's got one Smartphone penetration approaching 20% Internet-connected adults have smartphones; non-connected don't Among internet-connected, income and region shape mobile & smartphone penetration Telcel reaps 70% subscription share Internet and mobile phone use trends Telecommunications growth strongly outstrips GDP growth Internet trends 40 million now use Internet—but penetration only 36% Graph 4-1: Mexico Internet User Population and Population Share: 2003-2012 Lagging U.S. and Canada; in the middle of the Central and South American pack Graph 4-2: Internet Users per 100 People in North America, Central America & South America,by Country: 2003-2012 Generational differences Youth is driving usage penetration Graph 4-3: Internet usage penetration, by age: 2012 Mobile phone trends 100 million subscriptions and counting Graph 4-4: Mexico Internet Usage and Mobile Phone Subscription Penetration Rates: 2003-2012 Smartphone penetration low but should spike by 2015 Graph 4-5: Mexico Internet Usage, Smartphone Usage and Mobile Phone Subscription Penetration Rate: 2012 Cell phone operator market share Graph 4-6: Mobile Phone Subscription Share, by Operator: Q1 2013 Proprietary survey results Smartphone usage chasm differentiates internet-connected and non-connected Mobile phone usage and smartphone usage share Among internet users, smartphone share above 80% Table 4-1: Mexican Mobile Phone Usage & Smartphone Usage Share: 2013 Internet, mobile & smartphone usage penetration: demographic analysis Table 4-2: Mexican Internet, Mobile Phone & Smartphone Usage Penetration, by Age: 2013 Mobile & smartphone penetration relatively high even among lowest income groups Table 4-3: Mexican Internet, Mobile Phone & Smartphone Usage Penetration, by HH Income: 2013 Penetration rates high in urban center Table 4-4: Mexican Internet, Mobile Phone & Smartphone Usage Penetration, by Region: 2013 Chapter 5: Mexican Mobile Banking & Payment Trends Summary analysis Lots of mobile phones, little financial inclusion Government data reveals seeds of online banking usage Proprietary survey analysis: mobile banking/payments have already taken root Account engagement leads payments P2P usage could be 3.7 million But most consumers interested in SMS text payments Other methods also of interest—but technology will need to catch up Interest in mobile shopping and mobile phone public transportation payment Smartphones are strong usage differentiator, but interest among non-smartphone users Online bankers Table 5-1: Internet Bank Transfer Users: 2008-2012 Online banking uptake among internet users Online banking only a niche Graph 5-1: Purpose of Internet Use, 2012 Online banking crosses the million mark Graph 5-2: Population and Percentage of Online Bankers & Online Purchasers, 2012 1.7 million online payers, but less than 1 million make financial service payments Graph 5-3: Types of Online Payments Made, 2012 Proprietary survey analysis Mobile financial services current use & future interest Current use: mobile payment, shopping & purchasing tools Strong traction: current use of mobile payments and purchases Graph 5-4: Percentage of Mobile Phone Users Who Performed Mobile Financial Services Tasks in Last 12 Months: 2013 Interest in next 12 months: mobile payment, shopping & purchasing tools Interest in paying via SMS texting highly likely But app- browser- and contactless payment interest also suggests promise Graph 5-5: Mobile Phone User Interest in Performing Mobile Financial Services & Shopping Tasks in Next 12 Months: 2013 Current use & future interest: Smartphone and non-smartphone users Mobile payment/shopping/purchasing use skews heavily to smartphone users Table 5-2: Percentage of Mobile Phone Users Who Performed Mobile Financial Services Tasks in Last 12 Months: 2013 But sizeable interest exists among non-smartphone users Table 5-3: Mobile Phone User Interest in Performing Mobile Financial Services & Shopping Tasks in Next 12 Months: 2013 Chapter 6: Mexican Mobile Remittance Trends Summary analysis U.S.to- Mexico remittances top $23 billion but mobile is not a factor Costs declining; internet method is cheapest U.S. immigrant remitter interviews: banked and connected; but banks and internet not used Internet-connected Mexican adults engaging in international remittance/P2P Domestic migrant remittance market undervalued and underserved Domestic remittance/P2P a different demographic animal Key market participant: Telecomm-Telegraph Key market participant: Xoom Key market participant: MoneyGram International, Inc. Key market participant: Western Union Mexican remittances market Table 6-1: International Remittances Received from U.S. & Received by Mexico, by Country: 2012 Inflows over time: robust growth, following by rocky trending Graph 6-1: Remittances Received by Mexico: 2003-2012 Remittance payment methods Cash option Credit card and debit card Online and mobile Globally, mobile remittance promise remains unfulfilled Regulatory and operational challenges Remittance costs declining Costs of remittances at banks decline—now cheaper than a money transfer operator Graph 6-2: Cost to Send $200 from U.S. to Mexico: Fees, Exchange Rate Margin & Total Cost,Q1 2010 to Q1 2013 Online methods generally cheapest; banks are in the middle Table 6-2: Cost to Send $200 from U.S. to Mexico, by Remittance Service: Q1 2013 A window into cross-border remittance partnerships Table 6-3: Cost to Send $300 from U.S. to Mexico, by Remittance Service,With Funds Collection Points: 2013 Proprietary survey analysis: U.S. immigrants remitting to Mexico Participant analysis Low HH incomes do not stop remitters from sending significant amounts Connected to the internet and mobile Majority are banked Table 6-4: U.S. Mexican Immigrant Remitters: Basic Demographics, Banking Relationships& Amount Sent: 2013 But internet-driven methods to send money are not used And yet few use banks to send money Western Union: a popular choice, but complaints about cost Table 6-5: U.S. Mexican Immigrant Remitter's Primary Method of Sending Money to Mexico: 2013 Table 6-6: U.S. Mexican Immigrant Remitters: Primary Method of Receipt in Mexico: 2013 Cross tabbing notes Qualitative participant assessments Maria's priorities: security for recipient; convenience and cost for sender and recipient Miguel's priorities: building a home in Mexico and gauging the exchange rate Teresa: convenience and cost drive the decision Carlos: no banking relationship, paid in cash, and an Intermex user Proprietary survey analysis: Mexican international remittances/P2P Remittance/P2P summary results Table 6-7: Mexican Adult Internet Users Who Send/Receive International P2P Payments& Amounts Sent: 2013 Usage and amounts highest among 18-24s Table 6-8: Mexican Adult Internet Users Who Send/Receive International P2P Payments & Amounts Sent,by Age: 2013 Amount sent/received highest among higher-income respondents Table 6-9: Mexican Adult Internet Users Who Send/Receive International P2P Payments & Amounts Sent,by HH Income: 2013 Banks most likely receiving method; internet most likely sending method Table 6-10: Primary Remittance/P2P Sending/Receiving Method: 2013 Domestic remittances Untapped potential Market opportunity larger than current industry receipts Domestic remittance costs Migrant domestic remittance demographics Sending method Banking products Mobile remittances Proprietary survey analysis: Mexican domestic remittances/P2P P2P penetration near 40% Table 6-11: Mexican Adult Internet Users Who Send/Receive Domestic P2P Payments & Amounts Sent: 2013 Table 6-12: Mexican Adult Internet Users Who Send/Receive Domestic P2P Payments & Amounts Sent, by Age: 2013 HH income analysis Table 6-13: Mexican Adult Internet Users Who Send/Receive Domestic P2P Payments & Amounts Sent, by HH Income: 2013 Table 6-14: Method Used to Send & Receive Domestic Remittance/P2P Payments: 2013 Market participant analysis Expanding points of access Successful test case leads to wider rollout Results demonstrate promise Xoom An enticing value proposition Powerful, extensive partnerships in U.S. and Mexico Mobile leadership Online strength also a drawback Revenue and costs Growth analysis Table 6-15: Xoom Sending Volume, Customer, Revenue & Income Metrics: 2008-2013 MoneyGram International, Inc. Western Union Services Electronic channel growth and scope Loyalty program and prepaid Mexico volume decline Chapter 7: Mobile & Alternative Payments Strategies: Financial Institutions Card Associations American Express Minor Mexican presence Payment diversification Mexican differentiated products MasterCard PayPass Security PayPass global network growing fast, but remains small PayPass Wallet Services . . . . . . becomes MasterPass Wanda Mobile remittance platform launch in Mexico Mexico prepaid launch Visa V.me Priority 1: driving consumer adoption Rollout with major U.S. banking and retail partners PayWave Latin America prepaid card push Fundamo Vodafone agreement Mexican mobile banking Banks Banamex iAcepta card reader and mobile application Transfer payment platform expected to rocket to 1 million accounts Off to a good start Table 7-1: Transfer Contracts: 2012 Telcel phone number becomes a bank account Grupo Financiero Banorte Table 7-2: Grupo Financiero Banorte Branch, ATM, POS, Internet & Mobile Banking Metrics: 2010-2012 Credit card growth Correspondent banking growth Online banking Mobile banking and payments MiFon: a mobile payment application for underserved communities Different from Banamex service A rural success? Cost PagoMóvil: a mobile payment application for existing banking customers BBVA Bancomer Mobile Money How it works Additional features Requirements and transaction limits Santander Supermóvil: a token-based mobile banking and payment solution Chapter 8: Mobile & Alternative Payments Strategies: Other Institutions América Móvil Landline telephone and broadband Wireless operations Prepaid and postpaid Rates Data services growth Networks and technology Telefónica Móviles México Zero Prepayment campaign M2M Grupo Iusacell Nextel Mexico 3G launch Grupo Salinas Grupo Elektra Table 8-1: Primary Remittance/P2P Sending/Receiving Method: 2013 Alternative Payments & Emerging Wallet Payment Strategies Google Wallet Study it closely Wallet 1.0: lots of fanfare; little success Wallet 1.5: putting it in the cloud Calling all cards Save to Wallet feature Online/offline integration: Enter the virtual prepaid card Online purchases: ubiquity, courtesy of MasterCard In-store purchase limited by NFC Security enhancement Wallet 2.0: Leapfrogging NFC with a physical card PayPal 122 million accounts More than 1.5 million Mexican accounts Online and mobile capability Mobile payment apps In-store payment launched in U.S. PayPal Here: POS payment solution QR codes for Mexico Volaris alliance MercadoPago eBay connection Functions and services Credit card reliance Volume and revenue Table 8-2: MercadoLibre Revenue and Usage Metrics: 2008-2012 Appendix Consumer survey methodology Packaged Facts Mexican Survey Demographics Survey analysis by region Smartphone Market size Report table interpretation Abbreviations Currency conversion Terms and definitions To order this report:: Mobile and Alternative Payments in MexicoContact Clare: clare@reportlinker.comUS:(339) 368 6001Intl:+1 339 368 6001

 

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