The instability in the Brazilian economy, Brazilian politics, and the devaluation of the Brazilian Real have caused a decrease in cross-border credit card spending. Although consumers still travel and make international purchases, they’ve reduced the number of transactions and the amount charged for each transaction.
But according to a VPS study based on Visanet Data in 2016, not all customers are affected the same way.
- Affluent cardholders are less affected than lower income customers
- Online transactions increased relevance in cross-border spending
- Travel and entertainment merchant segments (i.e., lodging, auto rentals) are less affected than non-essential segments (i.e., clothing retailers);
- Travel destinations have changed from U.S. and Canada to countries in Latin America and Europe
Brazilian Cross-Border Spending from 2009-2015
Source: Banco Central de Brazil.
Visa Performance Solutions can help issuers and merchants understand and capture Brazilian consumer cross-border spending by analyzing data and insights and providing solutions that create more opportunities for spending.
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