The internal slowdown of economies and eurozone debt crisis resulted in a declined growth of payment cards market in Spain during the review period. However, the change in the economic conditions in recent years will promote the Spain Cards and Payments Industry in the forecast period, as per the recent research report published by Market Data Forecast.
The increased acceptance of closed-loop prepaid cards among the customers of Spain will have a positive growth impact on the prepaid cards during the forecast period with high CAGR.
Whereas, the credit card and charge card payments in Spain Market are anticipated to decline during the forecast period owing to the conservative consumer spending and strict credit measures by the banks. Charge cards will perform slightly better than the credit cards because of their demand in business sectors.
The sincere attempts of government and banking firms in Spain to introduce new products and funds in the market will augment the transaction value and volume of card payments channel of Spain. However, the conservative customer spending will remain further promoting the use of prepaid cards over other types of payment cards by the Spanish customers.
Role of social media in the Spain cards and payments industry
Banks in Spain like Bankinter, CaixaBank, BBVA and Banco Santander are using social media to reach potential customers. Bankinter Labs, a virtual community by Bankinter has a Facebook group, Twitter profile and own YouTube channel to promote its business updates. In the same way, BBVA introduced its own online community called actibva.com and CaixaBank introduced CaixaEmpresa, an own social networking site to improve its customer base and services.
The increasing activities on the social media by the banking and financial institutions to reach prospective customers promotes the cards and payments industry in Spain.
Increasing demand for closed-loop prepaid cards
Closed-loop prepaid cards are expected to grow higher during the forecast period despite the decline in the other types of payment cards in the country. The overall card and transaction volume of the closed-loop prepaid cards will increase owing to the growing unemployment levels, decreased social security payments and conservative customer spending. The closed-loop prepaid cards with restricted spending limit will soon replace the existing payment cards with high maintenance and annual fees.
To support the unbanked youth populations, Banco Sabadell has launched private-label prepaid cards that can be used at a popular pizzeria in Spain with more than 800 stores.
The rise in mobile payments
The increasing use of mobile phones and popularity of smartphones among the young individuals of Spain promote the mobile payments channel favoring the card-based transactions at the convenience of the customers. Payment platforms on mobile are introduced rapidly such as NFC-based mobile wallet for BlackBerry users by Telefónica in partnership with Research In Motion (RIM). Such initiatives by telephone operators will increase the mobile payments in the country during the forecast period strengthening the payment cards market of the country.
Growing e-commerce purchases
The growing interests of the customers to purchase online is propelling the banks in Spain to introduce more cards with those supported features. Prepaid cards and debit cards are more preferred choices for e-commerce transactions and are expected to grow higher during the forecast period. CaixaBank provides Prepaid MasterCard and Visa Money Card with secured features for transactions online.
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