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MasterCard's 2012 study of the global prepaid card market estimates that the potential gross dollar volume opportunity By:RobinArnfield for open-loop prepaid cards in Mexico in VRLprovidesindependent 2017 will be $45.8 billion. This represents a incisiveanalysisandinsight fortheglobalcardsand paymentscommunity. 38% increase on the $37 billion addressable opportunity which MasterCard forecast for Mexico in 2017 in its previous study, published in 2010.
MasterCard's figures are based on research by US-based consultancy Boston Consulting Group. "In 2017, Mexico will be the second largest prepaid card market in Latin America after Brazil," says Rebeca Vela, Business Leader for Expert Sales at MasterCard Mexico. "In Mexico, the biggest prepaid card markets will be payroll cards, followed respectively by government-issued welfare cards, employer-issued meal/food cards, and remittance cards." "The challenge for banks issuing prepaid payroll cards will be to offer cards that comply with the Mexican Central Bank's bank account regulations, while not being too complex for employers to administer," says Vela. In August 2011, Banco de Mxico, the Central Bank, introduced regulations stipulating four different levels of bank account, with different limits on monthly deposits. "The lowest level of account can only be accessed through a prepaid card, which can only be used in Mexico," says Xavier Fast, regional manager, Latin America and the Caribbean at World Bank subsidiary Consultative Group to Assist the Poor (CGAP). "This prepaid card account can receive remittances originating domestically or from abroad, but does not offer a mobile phone transfer capability." Economicgrowth Mexico, the second-largest economy in Latin America after Brazil, has 112 million inhabitants. Its GDP is likely to grow by 3.8% year-on-year in 2012, mainly driven by healthy domestic demand, investment bank J.P. Morgan says. Mexico's informal sector is estimated at 29% of the economically active population, J.P. Morgan says. Anabel Perez, president and CEO of Latin American prepaid card program manager NovoPayment, says that around 65% of Mexicans are unbanked. Consumer credit penetration in Mexico is low by regional standards, at around 15% of GDP versus 45% in Brazil and 72% in Chile, J.P, Morgan says. However, it predicts that consumer credit will grow at a healthy pace in 2012, following the 16.8% year-onyear average growth seen in the second half of 2011. According to Banco de Mxico, as at 31 December 2011 there were 12.3 million credit card accounts in Mexico, with a total of 24.65 million cards in issue, of which 16.73
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