ARGENTINA: BANKS POISED FOR CREDIT CARD BOOM?

Source: EMIA
06.15.2016

More than half of Argentina’s population is categorized as middle and high income, plenty of people in Argentina have “plastic” and stores are ready to take it, Morgan Stanley analysts note. Yet in Argentina, credit card spending to personal consumption expenditures is 13%, in line with Mexico and less than half that of Brazil.

Morgan Stanley Jorge Kuri, Jorge Echevarria and Felipe G. Salomao think credit card spending could double in Argentina over the next five years. They count 156 companies that issue roughly 90 card brands. They write:

“Our credit card model suggests that card spending can reach 29% of personal consumption expenditures (PCE) in 2021, up from 13% today. This implies a very attractive 5-year compound annual growth rate (CAGR) in transaction volumes of 34% in nominal terms and 22% in real terms. A key driver of our bullish view on card usage is that plastics and point-of-service (POS) terminals are already in place, in vast numbers. So usage penetration will depend more on increasing card spending, rather than on the long and expensive process of issuing plastics and acquiring new merchants".

External Link: CLICK HERE FOR FULL ARTICLE.

  • VII Concurso Internacional de Vinhos do Brasil (Wine)
  • New York Times 36 Hours in Buenos Aires
  • Alternative Latin Investor
  • Artful Living (Mansion)
  • Avid Magazine (AWE)
  • BlackBook Mag (Mansion)
  • CNN (AWE)
  • Conde Nast Traveler (Mansion)
  • Delta Sky Magazine (Mansion)
  • Departures (AWE)
  • Elite Traveler (Mansion)
  • Finger Lakes International Wine Competition (Wine)
  • Fodor's Choice 2013 (Mansion)
  • Fodor's Choice 2013 (Wine Estates)
  • Fodors (AWE)
  • Forbes Life (Mansion)
  • Frommer's Best Vineyards & Hotels Around the World
  • Andrew Harper’s Grand Awards 2013
  • International Wine Challenge U.K.
  • 2013 International Wine & Spirit Competition (Wine)
  • Kiwi Collection (Mansion)
  • Kiwi (AWE)
  • National Geographic Traveller 2012
  • Order Wine Direct (Wine)
  • Robb Report Exceptional Places 2012
  • Tablet Hotels (Mansion)
  • Telegraph (AWE)
  • Mediterranean International Wine & Spirits Challenge (Wine)
  • Travel+Leisure
  • Trip Advisor Top 25 Hotels for Romance Argentina
  • Unique Homes (AWE)
  • USA Today (Mansion)
  • 2013 Vinalies Internationales Paris d'or (Wine)
  • Vinandino 2013 (Wine)
  • VINUS 2014 (wine)
  • WAWWJ 2014 (Wine)
  • Wine Enthusiast (AWE)