Payments Landscape in Argentina: Opportunities and Risks to 2022

Payments Landscape in Argentina: Opportunities and Risks to 2022

Summary

Card-based payments are gradually gaining traction in Argentina courtesy of various government initiatives. As a result, the total card payments value is set to record a compound annual growth rate (CAGR) of 20.4% between 2018 and 2022. The overall card payment value in Argentina increased at a strong CAGR of 39.9% during 2014-18, rising from ARS489.5bn (US$13.0bn) to ARS1.9 trillion (US$49.8bn). This value is expected to reach ARS3.9 trillion (US$104.6bn) by 2022.

Argentina has traditionally been a cash-dominated society due to the high unbanked population and limited public awareness of electronic payments. However, to boost electronic payments and reduce consumer dependence on cash, the government has taken several initiatives such as promoting the use of payroll cards, mandating merchants to install point of sale (POS) terminals, and lowering merchant service fees.

To drive card acceptance among merchants and professionals, the Federal Administration of Public Revenue made it obligatory in February 2017 for merchants to install POS terminals. Retail and wholesale businesses, as well as professionals offering services in health, culture, sports and entertainment fall under the purview of this regulation.

The government also reduced the merchant service charge on debit card transactions from 1.5% to 1.1%, effective from January 2018, with plans to further reduce this to 0.8% by 2021, thereby making card acceptance cheaper for merchants. While cash will continue to dominate the overall payment landscape, these measures will certainly drive electronic payments and bring down cash dependence in the long run.

The "Payments Landscape in Argentina: Opportunities and Risks to 2022", report 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.

Scope

This report provides top-level market analysis, information and insights into the Argentinian cards and payments industry, including -

• Current and forecast values for each market in the Argentinian cards and payments industry, including debit, credit and charge cards.


• Detailed insights into payment instruments including cash, cards, credit transfers, direct debits, and cheques. It also, includes an overview of the country's key alternative payment instruments.


• E-commerce market analysis.


• Analysis of various market drivers and regulations governing the Argentinian cards and payments industry.


• Detailed analysis of strategies adopted by banks and other institutions to market debit, credit and charge cards.

Reasons to buy

• Make strategic business decisions, using top-level historic and forecast market data, related to the Argentinian cards and payments industry and each market within it.


• Understand the key market trends and growth opportunities in the Argentinian cards and payments industry.


• Assess the competitive dynamics in the Argentinian cards and payments industry.


• Gain insights into marketing strategies used for various card types in Argentina.


• Gain insights into key regulations governing the Argentinian cards and payments industry.