The Chilean payment card market has experienced significant shifts over the past decade, with notable growth in debit card usage and a mixed performance in credit cards. According to the 2014-2024 Statistical Yearbook, compiled from financial statements of issuers and brands, CMF data, and RankingsLatAm surveys, debit cards have seen a surge in transactions, while credit card issuance has slightly declined. Leading issuers in each segment continue to shape market dynamics, with banks and non-bank financial institutions vying for consumer preference.
Key Insights
The total number of debit cards reached 29.28 million, marking a 7.1% annual increase. The number of primary cardholders rose by 7.2%, while additional cards saw a 1.4% decline, suggesting a focus on individual rather than shared usage.
Debit card transactions surged 14.6% year-over-year, with a notable 15.5% increase in purchase transactions. However, ATM withdrawals, though up 4.8% in volume, registered a 2.0% drop in transaction value, indicating a shift towards digital payments over cash reliance.
The credit card segment saw a marginal decline in issued cards, with a 0.2% reduction in total cards and a 0.8% decrease in primary cardholders. However, additional cards grew by 5.2%, reflecting greater supplementary card usage within households.
Despite a shrinking card base, credit card transactions increased 13.7%, with purchases up 15.6% and cash advances rising 2.5%. However, service charges dropped 1.8%, potentially due to changing consumer preferences or regulatory adjustments.
The top debit card issuers include Banco del Estado de Chile, Banco de Chile, Banco Falabella, Banco de Crédito e Inversiones, and Banco Santander-Chile. In the credit card space, CMR Falabella, CAT Administradora de Tarjetas, Banco de Chile, Banco Santander-Chile, and CAR lead among bank-issued cards, while Solventa, Tricard S.A., Tempo Payments S.A., Créditos Organización y Finanzas S.A., and LP S.A. dominate the non-bank segment.
Market Overview
The debit card market in Chile continues to expand, with a robust 7.1% growth in total cards issued. The number of cardholders has kept pace, showing that demand remains strong. Transactions have risen sharply, particularly in debit purchases, which posted a 15.5% increase. While ATM withdrawals grew in volume, their transaction value declined, reflecting a move toward digital transactions rather than cash reliance.
In terms of spending, debit card transactions totaled 91.09 trillion pesos, growing 6.9% annually. However, in USD terms, the total fell 4.7% due to exchange rate fluctuations. The highest growth was in debit purchases, which rose 10.4%, while ATM withdrawals in USD terms dropped 12.6%. This trend reinforces the shift towards card-based payments over cash.
The credit card sector presents a more nuanced picture. While the total number of cards issued declined slightly, transaction activity increased substantially. Purchases rose 15.6%, reflecting consumer confidence and spending habits. Cash advances also saw moderate growth at 2.5%, indicating that some consumers still rely on credit for liquidity needs. In pesos, total credit card transactions amounted to 49.46 trillion, a 12.6% increase, with purchases accounting for 42.23 trillion.
In USD terms, the credit card market remained stable, with total transactions at 49.81 billion, showing a 0.3% uptick. Purchases remained almost flat at 42.53 billion USD, while cash advances and service charges grew modestly. This suggests that while spending is increasing in local currency, exchange rate dynamics have played a role in moderating dollar-equivalent growth.
Overall, Chile’s payment card market remains dynamic, with debit cards driving digital transaction growth, while credit card usage is stabilizing. Market leaders continue to shape the competitive landscape, ensuring that both bank and non-bank players remain relevant in the evolving financial ecosystem.