The Guatemalan credit card market has displayed a modest yet steady growth trajectory, marked by a small year-on-year increase in outstanding balances and a significant rise in the number of active credit cards. As of 2023, the total outstanding balance on credit cards reached QZ$ 22583 million, up slightly from QZ$ 22417 million in 2022, reflecting a 1% growth.
The number of active credit cards tells a story of greater consumer engagement and possibly a growing acceptance of credit as a financial tool among Guatemalans. From 2022 to 2023, the number of active credit cards surged from approximately 2.9 million to almost 3.2 million, an increase of nearly 8.6%. This rise suggests a significant shift towards credit card usage, which may be attributed to broader financial inclusion initiatives, e-wallets and an increase in banked individuals.
Looking forward, the market is poised for further expansion. Projections for 2025 estimate that the outstanding balance could reach as high as QZ$ 25000 million, assuming the market holds the same appetite for credit and an expanding consumer base. This forecast aligns with the observed trends of growing credit utilization and depends on sustained economic growth and an increase in consumer confidence.
Credit Cards outstanding balance market share growth ranking
Market dynamics are also shaped significantly by the competitive landscape, dominated by a few key players. As of the end of 2023, the top five issuers of credit cards, in terms of market share growth, were led by Industrial Bank with a growth of 0.97%. Banco Promerica followed with a 0.67% increase, and other notable institutions like Bantrab, Ficohsa Guatemala, and Banco CHN also contributed to market dynamics albeit with smaller increments.
The five leading institutions collectively hold a formidable 82% of the market share, dominated by Banco Promerica, BAC, Industrial Bank, Banrural, and BAM. This concentration highlights a market largely influenced by these major players, dictating terms and perhaps setting the stage for how credit services evolve to meet consumer needs in Guatemala. As the market continues to grow and evolve, monitoring these key players and their strategies will be crucial for understanding the overall health and trajectory of the credit card sector in Guatemala.
