Card market expected to reach R$2.3 trillion in 2020

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In 2019, Abecs predicted that the card market would grow between 17.5% and 19%. Expectations were met and, at the end of the third half of the year, the sector reached the mark of R$1.84 trillion in the year to date.



The optimistic scenario should continue in 2020. According to the association, the card market should grow 24% in transaction volume, reaching the R$2.3 trillion mark.



It is important to remember that, until 2018, the student database faced difficulties, as not all commercial establishments accepted this form of payment.



What has changed in the last two years?



Before answering this question, let's analyze the behavior of the card market in 2019.



The card market in 2019
Abecs is the Brazilian association that represents electronic payment companies. At the beginning of 2019, the entity expected the card market to grow between 15% and 17%. However, in the first half of the year, the sector generated R$850 billion, causing the institution to change its projection to 17.5% and 19%.



In the second half of the year, the segment continued to surprise. Credit card use increased by 19.7% in the period and grew by 19%, the highest rate in seven years.



Analyzing the last 3 months of the year, Brazilian consumers moved:



R$260 billion with credit cards
R$152.5 billion with debit cards
R$3.5 billion with prepaid cards


Values ​​that correspond to advances of 17.8%, 15.1% and 58.8% respectively.



Changes in the sector
These numbers were helped by changes in the card market. Among them:



Drop in rental and purchase prices of machines
Exemption from fees
Reductions in payment terms
Popularization of contactless technology
Growth of mobile payments
Online shopping
Participation in new niches


Until the second half of the year, the average fee charged on card transactions was 2.12%, a figure that was later reduced to 1.91%. This 10% reduction was the largest in ten years. As a result, more merchants adopted this payment method, which is now present in 70% of Brazilian stores.



Online, the card market is also gaining strength. Non-face-to-face purchases made via cell phone, for example, jumped from 53% to 72% between 2017 and 2019.



The Abecs survey conducted by Datafolha also showed that 86% of consumers use credit cards to make purchases via eCommerce . For Pedro Coutinho, CEO of the association, the challenge is to strengthen the participation of debit cards in this activity.



Finally, we have contactless technology , now used even on buses and subways in São Paulo.



Contactless technology
Contactless cards perform transactions by approximation, requiring a password only for purchases over R$50. Payment is made when the card is brought at least 4 cm away from the automatic terminal.



We can find credit, debit and prepaid cards with this technology on the market, as well as smartwatches and smartphones. The first banks to adopt this new practice were Bradesco, Original and Nubank.



According to Forbes, one in five in-person transactions worldwide are contactless. By 2022, this technology is expected to expand by 24% per year.