Brazil Cards and Payments Market Insights and Forecast to 2022 1 | Page 3

Brazil Cards And Payments Market Overview
The credit and debit card categories have matured and are projected to generate nominal
growth over the forecast period. The category of debit cards is expected to post a growth rate
of xx%, with the credit card category expected to post a growth rate of xx%. The key factor
encouraging the growth of the market is the legislation of the government which levied a
charge of xx% on all the transactions of foreign origin which have been made through credit
cards issued in Brazil. The preloading of prepaid cards with Brazilian real has caused the
transactions made thorough them to be treated as domestic payments, which have a lower
tax rate of xx%.
The charge cards and prepaid card categories are projected to be the prime drivers of the
channel of card payments. Further, the lovey of lower tax rate on prepaid cards has resulted in
a mass subscription of large-scale subscription of prepaid cards. The consumer preference for
debt-free payments is expected to be another factor for this surge in subscriptions, with the
current economic uncertainty in the country.