Visa Credit Cards Issuance Grew 37%
Friday, August 10, 2007
The Demand for Credit Payment Solutions by Entry-Level Consumers Was a Significant Driver for Growth. MIAMI–(BUSINESS WIRE)–Visa International Latin American and Caribbean Region (LAC) Point-of-Sale (POS) volume increased 26 percent to US$116.3 billion during the four quarters ending on March 31, 2007. Visa attributed this growth mainly to the credit card segment, which rose 37 percent in the number of credit cards issued versus the same period last year and now accounts for 91.3 million cards. Purchases made with Visa credit cards at the POS grew 26 percent to US$ 77.8 billion, while POS volume with debit and prepaid products registered a year-over-year increase of 25 percent to US$38.5 billion.
?We have seen more than 80 percent growth in the issuance of Visa credit cards since 2005, particularly in entry level segments, as a result of greater credit access and specialized products extended by issuers,? said Eduardo Era?a, president and CEO of Visa International LAC. ?This is positive for consumers, merchants and the economy as a whole.?
Providing access to the entry-level segment, who Visa classifies as those individuals with a monthly income between US$100-$500, has been a key factor for the growth of the credit card segment during this period. Visa?s strategy to bring credit solutions to these consumers focuses on enabling financial institutions to transition existing debit clients to credit, while bringing in new clients who did not previously utilize the banking system. Additional strategic efforts have been implemented to increase the participation of financial institutions in the issuance of Visa co-branded store cards, because these are among the first financial products to reach this segment of the population.
Low income consumers greatly benefit from these products especially as a result of tailor-made advantages such as increased financing flexibility, fixed low monthly payments, and automatic credit extension of up to 100 percent for high ticket purchases.
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