Argentina is going to embrace card over cash payments, according to GlobalData.
The data and analytics company notes that the rise in e-commerce and contactless payments in Argentina amid the COVID-19 pandemic will drive card payments, which are expected to grow to reach ARS16.8 trillion ($199.8bn) by 2024.
The pandemic has impacted consumer spending – as it has anywhere else – with a rise in card payment at the expense of cash. The Argentinian government is promoting payroll cards and operators are lowering both interchange fees and merchant service charges. Sellers are encouraged to install POS terminals in stores.
While GlobalData expects Argentinians to begin splashing out with their cards in the future, this payment method is already seeing robust growth, with a 45.5% rise expected by the end of 2021, reaching ARS6.8 trillion ($80.6bn).
The Ahora installment program
The government extended the Ahora credit card-based installment program until 31 July 2021, enabling credit cardholders to purchase products in three, six, 12, and 18 interest-free installments.
In addition to in-store purchases, the program has been extended to online purchases. From January to April 2021, 20.1 million transactions worth ARS232.4bn (US$2.8bn) were made via the program.
The contactless payment limit in Argentina was doubled from ARS2,000 (US$23.79) to ARS4,000 (US$47.58).
