Chile: Study boosts credit card monopoly concerns

A new report by the National Corporation for Consumers and Users (CONADECUS), a consumer advocacy group, has confirmed that Chilean consumers pay far higher commissions on credit cards than similar customers in Europe, Australia or the United States. According to their analysis, the rates in Chile can be several times higher than those in developed countries.

Álvaro Caballero, an economist involved with the study, explains that the reason is a highly concentrated market, which ultimately harms consumers. “As there is a situation of lack of competition in Chile, transaction costs are much higher than those in other markets. For example, we compared ourselves with Spain and Australia. Making a purchase with a credit card in Chile can cost six times more than in Spain. And when comparing debit cards, Chile’s are up tu 19 times more expensive.”

The economist attributed the difference to the fact that in developed countries there is real competition between providers, which allows them to reduce costs for consumers. The analysis adds to growing evidence of a harmful monopoly in Chile’s credit market.

Full content: Radio U Chile

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