In Argentina, the payment landscape is characterized by a dynamic mix of traditional and modern methods, reflecting the country’s diverse consumer preferences and technological advancements. This includes card payments, bank transfers like the innovative “Transferencias 3.0” system, installment and BNPL options, and the growing popularity of digital wallets. Each method caters to different needs, from the convenience of card payments and e-Wallets to the efficiency of bank transfers and the flexibility of BNPL services. Local players like Cabal, Tarjeta Naranja, Diners Club, MODO, and Mercado Pago, along with global e-Wallets like Neteller and Skrill, are driving this evolution. This multifaceted payment ecosystem underlines Argentina’s progress towards digital finance, offering a range of solutions that enhance financial accessibility and efficiency.
Payment by cash in Argentina
In Argentina, online cash payments bridge e-commerce with traditional habits. Services like PagoFacil and Rapipago enable this. Shoppers order online, then pay in cash at designated locations. This method is essential, given the country’s high reliance on cash transactions. E-commerce businesses integrate these options to reach wider customer bases. Despite digital trends, cash remains a preferred payment method in Argentina. These services link digital commerce with Argentina’s cash-based economy, reflecting local consumer preferences and financial practices.
Local actor: PagoFacil, Rapipago, Cobro Express
 
 
Payment by card in Argentina
In Argentina, the e-commerce landscape is witnessing a dynamic shift in payment methods, with card payments playing a pivotal role. The market exhibits a mix of domestic-only and internationally-enabled credit cards, along with debit cards, each capturing a significant share of consumer preferences​​​​. This variety reflects the diverse payment habits of Argentinian consumers.
The card payment sector is experiencing robust growth, with projections indicating a significant increase in market value by 2025. This growth trajectory is largely fueled by the transition from traditional cash payments to electronic methods. These policies include promoting electronic payments, reducing fees for merchants, and extending credit facilities like the Ahora program, which facilitates installment payments for both online and in-store purchases​​.
Local card schemes are an essential part of this evolving payment landscape. Key players like Cabal, Tarjeta Naranja, and Diners Club offer specialized services, contributing to the diverse range of payment options available to Argentinian consumers and merchants​​​​​​​​. Their presence alongside global giants like Visa and Mastercard adds to the competitiveness and richness of the market.
Furthermore, the market is witnessing the introduction of new entrants, such as FIS, which have secured domestic card scheme acquiring licenses. FIS’s entry is expected to enhance the range of merchant solutions, particularly in online commerce, reflecting the ongoing transformation and expansion of Argentina’s digital payment ecosystem​​.
Overall, Argentina’s card payment sector in e-commerce is characterized by growth, diversification, and innovation, indicating a strong trend towards digital payment solutions.
Local actor: Cabal, Naranja,Diners, Monicard
 
 
 
Payment by bank transfer
In Argentina, the Central Bank of Argentina (BCRA) has implemented the “Transferencias 3.0” system. This modern payment method allows for instant, secure, and efficient bank transfers. It uses QR codes for transactions, streamlining the payment process significantly.
This system represents a significant leap in financial technology. It offers a universal QR code standard, making it possible for various digital wallets and banking apps to conduct transactions seamlessly. One of its key features is the immediate crediting of funds, which is crucial for both businesses and individuals. The system operates 24/7, enhancing accessibility for all users.
Several applications have integrated Transferencias 3.0. Mercado Pago, a leading player in the market, has onboarded over 1.5 million merchants. It has extended its reach to include large retail chains like Burger King and Farmacity. BNA+ and Cuenta DNI, developed by Banco Nación and Banco Provincia respectively, also utilize this system. They cater to a wide range of users, promoting financial inclusion.
PagoMisCuentas allows users to pay various types of bills, including utilities, taxes, and service fees, using direct bank transfers.
Furthermore, fintech application like .Reba, and Ualá have adopted Transferencias 3.0. These apps represent the growing influence of fintech in Argentina’s financial landscape. MODO, an app developed by over 35 banks, is another key user of this system. It signifies the banking sector’s commitment to digital transformation.
Fiserv, formerly known as FirstData, has enabled Transferencias 3.0 for about 100,000 merchants, including numerous YPF service stations. This demonstrates the system’s wide applicability across different business sectors.
Transferencias 3.0 stands as a testament to Argentina’s progress in digital finance. It not only simplifies transactions but also fosters economic growth by integrating various digital payment methods. This system is a step forward in enhancing financial accessibility and efficiency in Argentina.
Local actor: MODO, Mercado Pago, Ualá, .reba, BNA+, Cuenta DNI, PagoMisCuentas
 
 
 
 
 
 
Payment by installment and BNPL
The Buy Now Pay Later (BNPL) market in Argentina is experiencing rapid growth and expansion. As of 2023, BNPL payments in Argentina are projected to grow by 54.6% annually, reaching a total value of US$2,070.9 million. This growth trajectory is expected to continue, with a forecasted compound annual growth rate (CAGR) of 31.3% from 2023 to 2028. By 2028, the BNPL Gross Merchandise Value in Argentina is anticipated to reach US$8,068.9 million​.
Key players in Argentina’s BNPL market include Wibond, Wipei, and Ualá. These companies are at the forefront of providing innovative BNPL solutions, catering to a diverse range of consumers and merchants.
The BNPL model in Argentina is characterized by various business models and distribution channels. It includes standalone systems, partnerships with banks and payment service providers, and integrations with marketplaces. Both online and point-of-sale channels are utilized, demonstrating the flexibility and accessibility of BNPL services.
Banco Galicia, one of Argentina’s leading banks, is actively exploring the BNPL space. They are keen on leading the expansion of the BNPL model in Latin America. Banco Galicia, one of Argentina’s leading banks, is actively exploring the BNPL space. They are keen on leading the expansion of the BNPL model in Latin America.
In addition to Banco Galicia, the Argentine fintech MODO is also stepping into the BNPL market. MODO, a virtual wallet solution popular in Argentina, has introduced an instant payments feature and is exploring BNPL products. This initiative is a part of a public-private project involving more than 35 banks in Argentina.
Local actor: Wibond, Wipei, Ualá, Banco Galicia, MODO
 
  
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Payment by digital wallet and X-Pay
The e-Wallet payment market in Argentina is experiencing significant growth. This surge is driven by the increased adoption of digital and mobile payment solutions, particularly among consumers who prefer the convenience and security of electronic transactions. Key players in the Argentinian e-Wallet market include PayU, PagoFacil, and Rapipago, among others. These companies are innovating in the digital payment space, offering diverse services that cater to the evolving needs of consumers and merchants alike. The market is characterized by strong competition and a focus on enhancing product portfolios to capture a larger share of the growing e-commerce industry. The COVID-19 pandemic has further accelerated the shift towards digital payment methods, with more consumers and businesses adopting e-Wallets for various transactions
In December 2020,more than 35 financial institutions launched the mobile payments platform MODO. MODO offers account-to-account transfers, in-store QR payments, and integrates a client’s bank accounts and cards into one platform. It competes with Mercado Pago, a unit of MercadoLibre Inc., which pioneered QR payments in Argentina and boasts over 4.7 million active users. MODO differentiates itself by operating on an open loop scheme, allowing merchants to accept payments on various point-of-sale products, and offering simpler money transfers via phone numbers. The platform gained significant traction, attracting a million users and over 300,000 vendors quickly after its launch.
Local actor: PayU, PagoFacil, Rapipago, Mercado Pago, MODO, Personal Pay, Yoy, Pagar
    
 
 
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