Visa Latin America Debit and Prepaid Grows Over 50 percent

"This growth is driven primarily by a steady increase in the number of consumers who are replacing cash and checks as their primary means of payment, due to the convenience and safety that this product category provides in everyday purchases," said Vicente Echeveste, Vice-President Consumer Products, Latin America and Caribbean Region. "It also enables banks to reach and efficiently provide services to segments of the population with limited or no access to credit lines. Prepaid solutions further enable banks access to people who do not use traditional banking products."

Another factor is the clear shift in consumer spending behavior as it relates to debit and prepaid payment methods. Consumers are using them more and more for recurring payments, such as utilities and bills, in addition to everyday purchases, such as groceries, gas and dining. This is especially true in key markets, including Brazil with a 64 percent purchase volume increase, Puerto Rico with 48 percent, Costa Rica with 43 percent, Chile with 41 percent and Mexico with 37 percent.

The growth in Latin America is synonymous with the growth that Visa is experiencing at the global level. At the recently held Visa International Global Debit Forum in Prague, Visa announced that global sales totaled more than US$1.1 trillion, a 19 percent year over year increase in the segment, and that other Visa regions such as Asia Pacific and CEMEA reported similar increases of 49 percent and 40 percent respectively. The Forum, which reflects the commitment of Visa and its Member Banks the debit and prepaid category, gathered 350 representatives of 91 Member Banks from more than 60 countries.