Between July and October 2020, the number of people in El Salvador exploring mortgage options online increased by 18%, and the number of Costa Rican consumers looking to buy credit cards decreased by 60%.
CentralAmericaData's interactive platform Consumer Insights monitors in real time the changes in consumer habits in all markets in the region and in other Latin American countries, with fundamental information to understand their behavior, new trends and anticipate eventual changes in their purchase patterns.
In the last few months, interest in credit cards has been increasing in the digital environment, a rise that is mainly explained by the behavior of consumers in Panama, Honduras, El Salvador and Costa Rica.
Through a system monitoring changes in consumer interests and preferences in Central American countries in real time, developed by CentralAmericaData, it is possible to project short and long term demand trends for the different products, sectors and markets operating in the region.
From August 4th and during 10 working days, the Central Bank of Costa Rica will submit to public consultation the technical study regarding the First ordinary fixing of commissions of the payment card system and the proposal of Regulations of the Payment Card System.
This study and proposed regulation are being carried out in accordance with the provisions of the Law of Maximum Commissions of the Payment Card System, Law 9831, of March 21, 2020, informed the monetary authority.
In the countries of the region, more than 8 million people are looking for credit on the Internet. Of this group of consumers, approximately 9% explore options for taking out a student loan.
The interactive information system developed by CentralAmericaData monitors in real time the changes in consumer habits in all markets of the region, with fundamental information to understand the new commercial environment that has emerged in an accelerated manner.
The Banco Popular y de Desarrollo Comunal de Costa Rica is bidding for the credit card processing service and the dataphone rental and maintenance service in its various modalities, under the modality of consumption on demand.
Costa Rica Government Purchase 2020LN-000009-0020600001:
"Services are required for the processing of VISA and MasterCard for products, credit, debit and prepaid, whether they are their own or sponsored to a third party, additionally, it is required to hire the services of rental of dataphones (POS) in its various forms and preventive and corrective maintenance services of the terminals.
At a regional level, nearly 16 million people are looking to purchase financial services online. Of this group of consumers, approximately 11% are exploring options for acquiring a credit card.
The interactive information system developed by CentralAmericaData, monitors in real time the changes in consumer habits in all markets of the region, with fundamental information to understand the new commercial environment that has emerged in an accelerated manner.
The coronavirus has left an economic impact in several countries. For this reason, some governments are developing exceptional measures to mitigate its effects. For example, the suspension of tax and mortgage payments to lessen the economic pressure on small businesses and households.
In the United States, interest rates were reduced to almost zero and a US$700 billion stimulus program was launched in a bid to protect its economy, says Mario Miranda, director of finance at MonederoSMART.
Between January and April 2019, the number of debit cards circulating in the country fell 5%, from 6.03 million to 5.71 million, and the accumulated balance of accounts associated with these plastics fell by 3%.
Based on the information reported by the companies, up to April 30, 2019 there were a total of 5,719,387 cardholders in the domestic market. When comparing this amount with the data from the previous study, a decrease of 311,505 cardholders is registered, informed the Ministry of Economy, Industry and Commerce (MEIC).
In Costa Rica, the authorities will begin to regulate the fees that form part of the commissions, which are charged when an electronic payment is made.
After the Ministry of Economy, Industry and Commerce (MEIC) requested the Commission to Promote Competition (COPROCOM) on July 27, 2018, the investigation of the interbank rates market in the service of acquiring electronic payment methods, Opinion No. 16-2019 of June 11, 2019 was issued.
Not considering the costs of the collection process, nor market conditions, are some of the failures that banks identify in the bill being discussed in the Legislative Assembly of Costa Rica.
Consistent with the behavior of recent years, up to October 2018 the number of credit cards circulating in Costa Rica totaled 2.98 million, 14% more than in the same month of 2017.
From the report of the Ministry of Economy, Industry and Commerce (MEIC):
The last quarterly study of credit and debit cards, as of October 31, 2018, conducted by the Ministry of Economy, Industry and Commerce (MEIC), through the Directorate of Economic and Market Research, determined that in nine years, the number of credit cards in the country increased 125%, representing a total of 2,984,769 plastics in circulation of which 1,976,522 are holders and 1,008,247 are additional plastics, i.e. linked to a cardholder.
Limiting the fees charged in Costa Rica and establishing a law that defines market limits in Guatemala are part of the attempts being made in the region to regulate the use of credit cards.
A law proposal presented last January before the Legislative Assembly of Costa Rica, aims to regulate the percentage of the commission paid by businesses for credit or debit cards.
In Costa Rica, the Central Bank and the Commission to Promote Competition are proposed to set a single percentage in the commissions paid by businesses for accepting credit or debit cards.
Law 21.177, which aims to empower the government to regulate the commissions charged by financial institutions to businesses, was presented to the Legislative Assembly by several deputies.
In Costa Rica, the balance of credit card debt increased 14.6% in the last year, measured as of July 2018, rising from $1.880 million in July 2017 to $2.155 million in the same month of this year.
The Ministry of Economy, Industry and Commerce (MEIC), reported that according to the latest study of the credit card market, compiled by the Directorate of Economic and Market Research, Costa Ricans increased their debt balance by ₡166 billion ($275 million) in one year, representing a 14.6% growth.
In Costa Rica, 36% of grocery stores and retail outlets have card payment systems, and on average they sell 27% more than those that do not have the service.
The data, which was collected between April and July of this year and is part of a study conducted by Fundes, shows that 44% of these types of businesses have bank accounts and 83% of establishments have an internet connection.