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Use of Credit Card in Brazil Jumps 25% to US$ 50 Billion

Brazil map covered with credit cards Brazilians are using credit cards more often. Purchases made using plastic money in Brazil during the first quarter totaled 85 billion Brazilian corn (US$ 49.8 billion), a 25% increase in comparison with the same period of last year.

The new data was disclosed this Wednesday, April 9, by the Brazilian Association of Credit and Service Card Companies (ABECS). The total includes purchases with credit, debit, store and network cards.

According to the association, 1.3 billion transactions were conducted, growth of 21% in comparison with the first three months of 2007. In March, according to the ABECS, the number of active cards in the country surpassed 450 million.

In a press release, the communications director at the association, Marcelo Noronha, stated that the result so far overcomes previous forecasts made by the sector. For the whole year, the organization was forecasting a 20% rise in volume of financial operations, but the figure may be revised, should performance remain above expectations during the second quarter.

There has been an increase of 10% in average amount spent per card, which reached 191 corn (US$ 112.1) in the first quarter. The bulk of expenditure was made using debit cards, for which average spending per unit grew 20% to reach 120 reais (US$ 70.4).

According to the ABECS, there are 205 million active debit cards in the country, which answered to a total of 24 billion reais (US$ 14.2 billion) spent in the first quarter, 29% more than in the same period last year.

The majority of expenditure, however, was made by means of credit cards, totaling 48 billion reais (US$ 28.1 billion), growth of 23% compared with the first three months of 2007. Store cards posted total spending of 12 billion reais (US$ 7 billion), growth of 23%.

ABECS counts on 35 affiliated companies that answer to 95% of the credit cards issued in Brazil. It is based in the southeastern Brazilian city of São Paulo and was founded in 1971.

Anba

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  • Show Comments (4)

  • Mike

    The US mortgage market
    The problem with sub prime mortgages is low income people were sold homes they couldn’t afford. Most were sold with no money down. Both Clinton and Bush bragged about record number homeowners in the US as if it was some kind of achievement by them. Basically, the government coerced banks into loaning money to minorities to encourage home ownership.Banks who used common sense were called racists for “redlining”. When the interest rates in the sub primr market adjusted people saw their monthly mortgage payments rise by 20 to 30%. That’s the monthly layout on a home owned for only a few years. If the rates jumped on a home with a 30 years mortgage that had 5 years left the payment might jum just a few dollars.

    When people buy homes beyond their means because they were encouraged by predatory lenders they just walk away and let the bank take it when the rates adjust. After all, they have no investemt in the home and they have no equity either. Other than that our economy is fine. Unemployment is low, the markets are doing quite well. But perception is everything and the media succeeds in painting every aspect of our society in a bad light. Everything is a “crisis”. Health care “crisis”, oil “crisis”, stock market “crisis”, enviornmental “crisis”. The list is endless.

  • KENDRA LEE

    compra no cartÀƒ£o a vista
    usar o cartÀƒ£o Àƒ© fogo
    dindim vivo Àƒ© o que dÀƒ¡ prazer
    os garoto de programa num aceita cartÀƒ£o
    Àƒ© sÀƒ³ pagar na vista 😉

  • bo

    I can’t see this….
    as being a good thing. Why do people think the U.S. economy is in the funk it’s in right now? Loans. Credit. And with inflation and interest rates in Brazil? This subprime mortgage deal in the U.S. was due to just 1-2% change in interest rates per YEAR…..imagine when the interest rates rise by 1-2% per MONTH here in Brazil and people have amassed all this debt…..

  • João da Silva

    Use of Credit Card in Brazil Jumps 25% to US$ 50 Billion
    Everything jumps in Brazil, including food prices. As our beloved Prez said in Holland, our poor are eating better with all the money they are earning, thus driving up the inflation rate. I wish the poor contribute to bringing down the inflation by eating less.

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