Ken research’s Payment Landscape In Venezuela: Opportunities and Threats 2021 gives a detailed insight about the payment industry in Venezuela. The report extensively talks about current and forecast values for each market in the Venezuelan cards and payments industry, including debit and credit cards. The report also includes detailed insights into payment instruments including credit transfers, cards, cheques and direct debit. It also, includes an overview of the country’s key alternative payment instruments. Various government regulations and market drivers of the cards and payment industry are discussed. Different strategies used to market debit and credit cards by the Venezuelan banks and institutes are analysed. The top market players in the payment industry of Venezuela are Banesco Banco Universal, Banco de Venezuela, BBVA Provincial, Mercantil Banco Universal, Banco Fondo Comun, Banco Occidental de Descuento, Mastercard and Visa.
All over the world, businesses and consumers have moved from cash to digital and cashless payments and the payments industry is evolving at a fast rate in the countries digital payments are not commonly used due to various reasons. Global payments revenue has been increasing in multi-fold despite many disruptions in the market. Nonbanking digital entrants have changed the customer experience and offer diverse payment options. Lack of cross-border payment services have encouraged various players in the past to enter the market. Digitalisation in payment industry has led to the digitalisation of transaction industry as well. As customers have become more and more comfortable with swiping cards and paying through mobile phones, the digitalisation of transaction industry is also expected to give way to its infrastructural development. In Venezuela, the country faced a shortage of cash in 2017 and the government has ever since been encouraging digital payments through an app introduced by them, called BilleteraMovil. Many ATMs were shut down last year owing to the increase in operational costs of running the machines.
Various government regulations have made it easier for the penetration of payment companies and start-ups. The Government of Venezuela recently reduced the VAT for debit ad credit part payments by 3-5%. On a mission to promote cashless transactions and reduce cash dependency, all major public and private sector banks have launched their own payments app which allows them to transact online and go cashless. The Venezuelan government is facing a cash shortage and thus is urging its citizens to move to digital platforms to make payments and reduce cash dependency. The country is seeing an increase in mobile phone users and thus the market for online payments is forecasted to be favourable.
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Ankur Gupta, Head Marketing & Communications