Challenges and opportunities for credit cards: strategies for low-income markets

Abstract

The low-income market in Brazil presents great opportunities for companies including the credit card sector. Bottom-of-the-pyramid customers look for quality which is, however, compatible with their budgets and needs. For this purpose an analysis was made of the critical aspects and opportunities in question. Literature disclosed eight factors that were analyzed in a qualitative survey and with in depth interviews. Variables relevant to business profitability in general were also presented. Results disclosed the possibility of competitive pricing advantages by offering simpler services and lower cost products. Brands offered to higher income brackets should be adapted with technologies for simplification and more attractive pricing. Partnerships should then be made with retail store networks to increase the use of credit cards.