How People Pay Cards
The challenge of card usage in emerging markets
And what has been done to boost card adoption
In a nutshell
Fintech companies and digital players are key drivers behind cards’ sustained presence and growth in emerging markets. Their innovative solutions are helping to overcome barriers like access to credit and boost card adoption for online purchases.
These digital-first institutions and local card networks are driving significant growth in card ownership and usage, particularly in Brazil, Egypt, India, and Nigeria.
Cards hold a major share of the digital commerce market in emerging economies, representing about 48% of online sales, and are projected to continue growing in volume.
To stay competitive, the card industry is evolving to further advance the online purchasing experience –through robust security measures, better user experience, and partnerships with digital players.
The uptake: Despite the rise of alternative payment methods, cards are evolving and holding their own in emerging markets’ e-commerce, driven by innovation and strategic partnerships with digital-first issuers and local networks.
Cards have become an intrinsic part of daily transactions, offering a seamless experience for consumers and businesses alike. Today, they are widely used and relatively accessible, including in emerging markets, democratizing how people spend and interact with financial services.
However, while card access has grown significantly in recent years, especially in emerging markets, having a card available and actually using it are not the same—a gap that both incumbent players and fintech companies are working to bridge.
According to the World Bank Global Findex numbers, 46% of people in developing markets have access to and own a credit or debit card, but only 30% use their cards. In comparison, 91% of the population of high-income markets own a debit or credit card, while 85% use them.
46%
of adults in emerging markets own a debit or credit card, but only 30% of them use it
Various barriers and considerations influence card usage. In emerging markets, many consumers still distrust financial institutions, due to historically high transaction fees. As a result, even when they have cards, consumers tend to use them only when absolutely necessary. In many of these countries, cash remains the preferred payment method, both among consumers and businesses, representing a more affordable option than cards. This hinders card acceptance in certain segments, impacting their usage.
Cards also face significant competition from Alternative Payment Methods (APMs), as shown in the first chapter of this study, as account-based transfers, instant payments, and other types of digital payments become more widespread. Additionally, there is limited access to credit in emerging markets, which impacts credit card limits and its adoption among consumers.
The players that are advancing card adoption
While those facts are still true for some emerging markets, fintech companies and other rising financial players are tapping into these opportunities, crafting solutions that promote card usage and bridge the gap between traditional banking infrastructure and the underserved segments.
“Yes, there's an increased ownership and usage of cards due to what I like to call ‘The Fintech Boom,’” says Juliana Etcheverry, Director of Country Growth – Latin America at EBANX. Especially in Latin America, the fintech activity has had a profound impact on card usage, bringing more people into the formal financial system. Etcheverry cites players such as Nubank in Brazil, Ualá in Argentina, and Nequi in Colombia as examples of companies that have made cards more accessible.
"There is an increased ownership and usage of cards due to ‘The Fintech Boom.’ In Latin America, these companies have made cards more accessible, with the end game to integrate more people into the formal financial system.”
Juliana Etcheverry
Director of Country Growth – Latin America at EBANX
In Brazil, the largest economy in Latin America, this has had a far-reaching impact on the number of financial services users –and, consequently, credit card users. According to a study by the Central Bank of Brazil, this number has soared in the past years, and digital players were a driving force. By the end of 2023, these institutions had almost the same reach as the top incumbent banks, with nearly 100 million individual active users (a jump from 25 million back in 2020).
Of those, at least 36.5 million people are credit card owners, per another study from the Central Bank. Digital players have seen the largest growth in the number of credit card owners, which has tripled since 2019. Meanwhile, among incumbent banks, the growth was a mere 13%.
Latin America shows how cards can soar given the right environment –even amidst the boom of alternative, instant payments across the region. According to the World Bank, almost 160 million Latin Americans are card owners, growing from 33% to 57% in just one decade.
A real trailblazer for card access in Latin America is Nubank. Founded in Brazil in 2013, Nubank has rapidly become a financial powerhouse, attracting 60% of Brazilian adults as clients. The company started with an unorthodox strategy: offering credit cards first, with small limits, and then evolving to added-value services such as digital accounts, investments, insurance, and other financial products.
Nubank grew by targeting underserved consumers: 50% of its customers in Brazil are young, from 20-30 years old, and 56% are female, per a 2024 Mastercard and Nubank study. “To bring more people into the financial system, Nubank uses a ‘low-and-grow’ strategy: they grant lower credit limits to new customers (based on their risk profile) and raise these limits in response to positive use and payment history,” reads the report.
With this same strategy, Nubank has successfully expanded into Mexico and Colombia, amassing a customer base exceeding 110 million –and shows no signs of slowing down. At the end of 2024, the company made a strategic investment of USD 150 million in Tyme Group, a fintech company with operations in South Africa and the Philippines, underscoring its clear intent to broaden its reach.
In Africa and India, local card networks are moving card adoption
On the other side of the Atlantic, in Africa and India, local card networks are the ones pushing the shift in card ownership, while major card brands such as Visa and Mastercard are also investing in the region, eyeing its growth potential.
“It's still a very APM-driven market, but the reality is that cards are growing faster in some countries, thanks to those domestic networks,” says Wiza Jalakasi, Director of Africa Market Expansion at EBANX.
“It's still a very APM-driven market, but the reality is that cards are growing faster in some markets, thanks to those domestic networks. They are bringing in customers that merchants are not seeing –people who couldn’t previously participate in the global economy now have access to it.”
Wiza Jalakasi
Director of Africa Market Expansion at EBANX
One of the main examples of this trend is Verve, a local card brand that is gaining significant traction in many African countries –particularly in Nigeria, where it has reached 70 million unique users. According to their reports, Verve has recorded an impressive 40% growth rate over the past two years, primarily among the young, digitally savvy population.
“Verve is causing a shift in card usage in Nigeria, both online and offline, slightly moving away from the dominance of bank transfers,” explains Jalakasi. He adds, “It’s huge—70 million people who couldn’t previously participate in the global economy now have access.”
This upward trajectory is anticipated to continue, with their own projections estimating a customer base of 100 million by 2025. The company emphasizes that its solutions are “tailored to economic and operational realities of the African markets,” meaning “a more affordable card option.” Its extensive network enhances the card's appeal to Nigerian consumers and underscores Verve's potential to become a key player in African markets.
In Egypt, the local card scheme Meeza was driven by the local government's initiative to improve the financial inclusion of its people. The country boosted the card's relevance by directing most social insurance pensions and payroll to Meeza cards, encouraging people to use them.
In addition, Meeza's issuing strategy was focused on prepaid and debit cards, which are much more widespread in Egypt than credit cards. Together, the two amount to 90% of all cards issued in the country.
“Debit is the most convenient card in Egypt, but prepaid cards are booming because you don't need a bank account to own them,” says Karim Elbaz, Director for MENA at EBANX. “Credit cards would require a lot of information – credit history, bank account… For a prepaid, you'll go through a soft registration process, submitting your ID, and that's it.”
Meeza cards have seen significant growth within the country. As reported by the Central Bank of Egypt, the company has already issued 39 million cards, contributing to card ownership (debit, credit, and prepaid) reaching about half of the adult population ––or 35.6 million people in total.
India is also experiencing remarkable growth in its card market. By November 2024, the country had circulated 107 million credit cards and an astonishing 993 million debit cards ––which reached a 5% and 27% penetration rate among adults, respectively, per the World Bank.
Leading the local solutions is RuPay, a state-backed card scheme with an impressive base of over 750 million cards, debit and credit combined. Just like in Egypt, RuPay's strategy is focused on debit cards, which represent about 90% of all cards issued in India, per the RBI.
“Those are customers that merchants might not be seeing –simply because they do not support the right scheme,” says Jalakasi.
