Demand for credit cards in Brazil is driven by consumers with an average age of thirty years and an average monthly income of BRL 1.429. The share of this particular credit card consumer segment increased from 12% last year to 16% in 2013, mainly due to a rise in the level of employment. However, people between 20 and 30 years with low-skilled jobs and therefore low income, remain the biggest credit card consumer segment with 26% of the total volume.
At the same time, Brazil‘s class E, composed by households with a gross monthly income below BRL 1.020, continued to grow from 6.2% in 2009 to 16.8% in 2013. Among all applicants in Brazil, 78% seek credit card service from more than one institution.
The findings come from an economic study conducted by Serasa Experian, a Brazilian credit information firm, which analyzed information from about 1 million Social Security Numbers. The company also measured the default rate in the first four months after the acquisition of credit cards. This rate, which was at 4.4% in 2012, fell to 3.8% this year – still above the 3.2% recorded in 2011.
According to the company’s president, Ricardo Loureiro, personal financial planning is essential in Brazil: “These people are learning how to deal with credits at a time when interest rates are high. Accordingly, the risk of making a frustrating experience right at the beginning is not negligible. ”
allpago international operates as a payment gateway in Brazil serving merchants and payment service providers with its products and services.
allpago‘s features include one-click payments, recurring payments, instalments, dynamic descriptor and mobile payment solutions. The companys html 5.0 code allows multiscreen and is as easy to implement into the store through the “plug and pay” feature. Furthermore, the company offers a fully integrated Risk Management Solution with more than 70 checks. allpago has recently become the first LATAM payment gateway of the Merchant Risk Council (MRC).