Market Research Report
Payments Landscape in Argentina: Opportunities and Risks to 2022
|Published by||GlobalData||Product code||633381|
|Published||Content info||65 Pages
Delivery time: 1-2 business days
|Payments Landscape in Argentina: Opportunities and Risks to 2022|
|Published: April 9, 2019||Content info: 65 Pages||
Cash remains the most popular payment instrument in Argentina, accounting for 80.0% of the country's total payment transaction volume in 2018; this was mainly due to the high unbanked population, inadequate banking infrastructure, limited public awareness of electronic payments and low acceptance of payment cards at merchant outlets. However, the government has been encouraging the use of payment cards by promoting the use of payroll cards, lowering interchange fees and mandating merchants to install POS terminals.
Debit card penetration in Argentina stood at 1.1 cards per individual in 2018. The government has been encouraging the adoption of debit cards by strongly promoting the use of payroll cards, as well as reducing interchange fees. In 2016, BCRA introduced guidelines for account opening and switching between banks. Financial inclusion initiatives are expected to drive banking and debit card penetration. All major banks now offer payroll accounts for customers.
Credit cards are the preferred card type for payments, accounting for 68.2% of the total card payment transaction value in 2018. Driving credit card transaction volume and value are Ahora plans, which enable cardholders to purchase products in interest-free installments. The Ahora program was first introduced in September 2014, and since its inception until the third quarter of 2018, ARS339bn ($9.0bn) in sales were made. Currently the plan is available at more than 350,000 stores in Argentina.
Argentina is the third-largest e-commerce market in Latin America, after Brazil and Mexico. E-commerce in Argentina recorded a significant review-period CAGR of 52.4%, to reach ARS195.7bn ($5.20bn) in 2018. Credit and debit card usage accounted for 38.2% of total e-commerce transaction value in 2018. The most important reasons cited by consumers in Argentina for using credit cards online are comfort and convenience. Alternative payments such as Mercado Pago, Rapipago, Pago Facil and PayPal are also used for online shopping.
The report "Payments Landscape in Argentina: Opportunities and Risks to 2022", provides detailed analysis of market trends in the Argentinian cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cash, cards, credit transfers, direct debits, and cheques during the review-period (2014-18e). The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2018e-22f). It also offers information on the country's competitive landscape, including market shares of issuers and schemes. The report brings together research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers detailed regulatory policies and recent changes in regulatory structure.
Companies mentioned: Banco de la Nacion, Banco Provincia, Banco Galicia, Banco Macro, Santander Rio, BBVA Frances, Visa, Mastercard, American Express, Diners Club, Cabal, Tarjeta Naranja