Argentina Digital Payment Market Overview, 2029

Over the last decade, Argentina has seen a significant shift away from cash in favour of digital payment options. This change can be attributable to a variety of circumstances. First, the country's internet penetration rate has risen to more than 87%. The broad availability of the internet has made digital solutions more accessible to the public, encouraging the adoption of online payment methods. Furthermore, the widespread usage of cellphones has played an important part in fueling this trend. With the increased prevalence of mobile devices, mobile wallets and contactless payment methods have grown in popularity, providing consumers with easy and efficient means to complete transactions. Furthermore, official initiatives like the "Plan Nacional de Pagos Digitales" have actively encouraged the use of digital payments throughout the country. These programs seek to improve payment infrastructure and encourage the adoption of electronic payment systems, accelerating the transition away from cash. Argentinians increasingly prefer payment solutions that are convenient, secure, and transparent. This cultural shift, combined with the growing influence of the younger generation, which is naturally more tech-savvy and comfortable with digital technology, has resulted in an increase in cashless transactions.

According to the research report "Argentina Digital Payment Market Overview, 2029," published by Bonafide Research, the Argentina Digital Payment market is expected to reach market size of more than USD 4 Billion by 2029. In Argentina, a significant portion of the population, particularly in rural regions, still prefers cash transactions. This inclination is typically the result of a lack of experience or trust in digital payment systems. Despite developments in digital infrastructure, certain communities are still unwilling to completely embrace digital payments for cultural or historical reasons. Addressing this dilemma requires not just technology breakthroughs, but also initiatives to educate and establish trust in these communities. In some parts of Argentina, a lack of dependable internet connectivity provides a substantial barrier to the broad use of digital payment methods. This problem is especially widespread in rural and distant places where internet infrastructure may be inadequate or inaccessible. Individuals who do not have constant internet connectivity struggle to execute online transactions or use digital payment services. Overcoming this difficulty will need investments in increasing internet infrastructure and developing creative solutions that can work well in low-connectivity situations. To protect against data breaches and fraud, Argentina's digital payment landscape requires sophisticated cybersecurity safeguards. Despite efforts to improve security standards, cybersecurity attacks exist, posing hazards to both consumers and financial institutions. To maintain trust and confidence in digital payment systems, cybersecurity technology must be continuously improved, as well as proactive steps to detect and prevent fraudulent activity. Effective risk mitigation requires collaboration among industry stakeholders, regulators, and cybersecurity professionals.

The Central Bank of Argentina is a key player in regulating the digital payment ecosystem, enacting regulations that promote transparency and security. Key rules such as Know Your Customer (KYC) guidelines and Anti-Money Laundering (AML) regulations are critical in limiting the dangers connected with digital transactions. The BCRA aims to safeguard customers from illegal activity and maintain the integrity of the financial system by imposing strict compliance standards. Adapting to changing regulatory requirements and promoting compliance throughout the industry are critical to maintaining a trustworthy and robust digital payment environment. The COVID-19 pandemic had a significant impact on Argentina's payment ecosystem, hastening the introduction of digital payments throughout the country. As social distancing measures and lockdowns became more widespread, consumers shifted to internet shopping and contactless payments to reduce the danger of viral transmission. This shift in customer behaviour accelerated the expansion of digital payment platforms, emphasising their relevance in allowing safe and convenient transactions under difficult conditions.

The provision of solutions and services in the realm of digital payments encompasses a comprehensive array of technologies and processes designed to facilitate electronic transactions, money transfers, and financial activities across digital channels such as the internet or mobile networks. These solutions are instrumental in creating an ecosystem that ensures secure, convenient, and efficient digital payments. Transactions can be categorised based on their type, with domestic payments referring to transactions conducted within a country's borders, while cross-border payments extend beyond national boundaries. Payment modes offer diverse options for users, including cards (plastic or virtual), ACH transfers, digital wallets (e-wallets or mobile wallets), and other methods like contactless payments, biometric payments, and bank transfers. These modes cater to various preferences and needs of users, ensuring flexibility and accessibility in conducting financial transactions. Moreover, digital payment solutions serve a wide range of industries and end-user verticals, including Banking, Financial Services, and Insurance (BFSI), healthcare, IT & telecom, media & entertainment, retail & ecommerce, transportation, and others. Each industry sector benefits from tailored digital payment services that streamline transactions and enhance operational efficiency. In essence, the digital payment landscape thrives on the diversity and adaptability of its solutions and services, catering to the evolving needs of users and industries alike in an increasingly digital world.

In 2021, the Central Bank of Argentina issued a new policy for Open Finance, marking a watershed point in the country's financial ecosystem. This rule allowed third-party providers to access client data with their permission, creating an atmosphere conducive to competition and innovation. By encouraging data sharing among financial institutions and third-party providers, the project aimed to increase customer choice and foster the development of innovative financial products and services suited to the needs of Argentine customers. Argentina's digital payment ecosystem reached a critical milestone in 2022 when it surpassed the issuance of 100 million debit cards. This milestone demonstrated the growing desire for cashless transactions among Argentine consumers. The increasing use of debit cards signalled a shift toward digital financial solutions, fueled by convenience, security, and changing customer behaviours. In 2023, Mastercard launched a campaign to let small businesses in Argentina accept contactless payments using their cellphones. This program aims to streamline payment processes for small businesses, in accordance with the growing trend towards digital transactions. Mastercard aimed to improve accessibility and convenience in the Argentine market by exploiting smartphone technology.



Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Digital Payment market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Offering
• Solutions
• Services

By Transaction type
• Domestic
• Cross Border

By Payment Type
• Cards
• ACH Transfer
• Digital Wallet
• Other Payment Modes

By Vertical
• BFSI
• Healthcare
• IT & Telecom
• Media & Entertainment
• Retail & E-commerce
• Transportation
• Others

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Digital Payment industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.