The credit card has consolidated itself as the main means of consumer financing in Mexico and has resisted the strong increases in the interest rate of the Bank of Mexico.
Although the banks had a strong placement of this product in 2022, the departmental ones also registered a good moment, in addition to the new players that have come to compete in the financial sector.
Banks in Mexico reached a total of 31.6 million cards last year, their best number in history; in departments, Liverpool reached 6.7 million cardholders, 10.1% more than the previous year and, if another important issuer is considered, the Brazilian neobank Nu, which exceeded 3.2 million cards in 2022, currently 40.9 million are circulating in the country of plastics.
According to the Fitch agency, banks are the dominant competitors, with a market share of around 70% of all credit cards issued in Mexico. Meanwhile, department stores have almost all of the remaining 30% of the market share.
BBVA México, Santander, Banorte, CitiBanamex, HSBC and Scotiabank were left with 74.4% of the Mexican market, while new players seek to gain participation in a business that has good expectations due to low bank usage.
This week, the Argentine giant Mercado Libre announced its credit card along with Visa.
In the opinion of the chief economist of BBVA Mexico, Carlos Serrano, the good conditions that wages and job creation have had, in addition to an increase in the number of clients who pay the full balance at the end of the month, known as totaleros, they maintain a healthy credit card portfolio. In addition, the outlook is positive for the coming months.
“We see the growth of credit cards as healthy. The fact that consumers are making better decisions, with a higher percentage of total clients, means that there may be a better portfolio quality”, said the specialist.
Even in an environment of inflation, real wages increase in the country, so credit capacity grows, he said.
“You can have a growth environment in card credit without sacrificing the quality of the portfolio,” he said.
As a measure to maintain the health of consumer portfolios, banks have begun to change the way they give credit, in response to high interest rates and the impact it will have on financing.
“The origination of new loans is structured differently, perhaps with longer terms and smaller amounts. We believe that it is a response to the higher rates,” explained Serrano.
What is sought is that the financial burden for households does not increase much, he said.
subscribe here to receive our newsletters on daily news, opinion and many more options directly in your email.
