In El Salvador, credit and debit cards are becoming increasingly important as a means of payment, and in the case of credit have become one of the largest sources of consumer loans. The sector's growth has been such that its proper functioning has become systemically important.
A document prepared by the SC is a report of findings which systematizes the analysis of data (quantitative and qualitative) collected and used in the study.
It begins by explaining the operation of payment systems for credit and debit cards, and then goes on to summarize and analyze the academic discussion that the issue has provoked among experts and government agencies that oversee and regulate. It then discusses the regulatory framework and makes a general description of the sector (main economic actors, their relationships and important features of the application) in order to provide a complete picture of it.
Finally, conclusions are presented and policy recommendations needed to strengthen and improve the conditions of competition in the sector. It also makes a comparative analysis of the experiences of state intervention in other countries by way of illustration.
Source: Superintendencia de Competencia (El Salvador)
More on this topic
April 2012
Visa Payments and Transfers is a system that allows transferring funds or making payments from cell phones using debit or credit cards.
Visa Inc. has developed a technology for making payments and debit card and credit transactions from phones that will be used in Guatemala for the first time in Latin America.
October 2011
Salvadoran private sector unions have expressed their opposition to state intervention in the market.
The new law, which sets a ceiling on interest rates for credit cards, is deemed to be a hindrance for the country's economy.
According to the Salvadoran Foundation for Economic and Social Development, Fusades, the reforms will result in reduced access to financing, they are therefore calling on President Mauricio Funes to veto the reforms.
March 2012
The Financial company Pronto Cash has issued a MasterCard card that operates similarly to a debit card, allowing payments to be made electronically, without stating its origin.
An article by Rafael Berrocal in Panamaamerica.com.pa reviews the payment system used by Pronto Cash, noting that "the collection of deposits is reserved for formal cooperative banks, and any other system is considered illegal, according to the financial regulators the MICI and the Superintendency of Banks."
October 2010
The amendments to Law 515 could be approved at the National Assembly in two weeks.
Sandinista legislator, Wálmaro Gutierrez, requested the Economic Commission to approve the report which is ready for signature since June.
Laprensa.com.ni reports, "The Assembly Board stipulated 1 week timeframe for the Economic Commission to pass and approve the report”.
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