Means of payment in Argentina: does technology kill cash?

Although cash remains the prevalent means of payment In Argentina, today technological advance added to the impact of inflation – by deteriorating the purchasing power of the pesos – are increasingly leaving that option relegated when purchasing.

In fact, a private study affirms that the country is at the forefront of the digital transformation in payments in Latin America and that consolidates itself as the country that leads the change towards digital payment methods.

This is stated in the most recent report by Ipsos, a market research specialist, which analyzes the patterns of adoption and use of payment methods in 14 countries in the region, including Brazil, Chile, Colombia and Mexico. It is based on data from more than 7,800 people and reveals how Argentines have been widely adopting digital tools for financial transactions.

The report focuses on analyzing the context in each country, the frequency and use of payment methods, the ownership of apps, online purchases and control of funds.

Regarding the local market, the work highlights that 95% of Argentines already use payment applications on their cell phonesa figure that exceeds the Latin American average.

“In addition, Argentina leads the region in the frequent use of digital accounts and transfersconsolidating itself as a pioneer in the transition towards a financial ecosystem that is presented as more secure and efficient,” the study states. And it adds that this leadership occurs in a regional context where competition for the digital market is increasing.

Regarding the survey, Alejandra Fishkel, Innovation and Marketing Lead from Ipsos Argentina, explains that it was done to show an overview of payment methods targeting mass consumption brands, retailers and banks, both in Argentina and at the regional level.

“In our country, we have detected that Argentines have proven to be true early adopters in the region, opting for payment methods that provide them with greater benefits, efficiency and control of their personal finances,” he commented.

Among the factors that influence adoption, users in Argentina highlight the ease of use (84%) and the benefits (51%) associated with these digital payment methodshe commented.

In any case, the option of paying with cash continues to be the method most used by Argentines, with 95% of the population still using it. And in fact, most small stores offer some discount for paying with physical bills. However, according to Ipsos, There is a clear trend towards digital payments.

According to data from the Central Bank (BCRA) from the first half of the year, “each adult made, on average, more than 40 electronic payments per month, 73% more than in the same period of 2023.”

Furthermore, it was found that Transactions grew more in quantity than amountdue to the advance of digitalization in daily and low-value operations that were mostly carried out in cash.

For Ipsos, “the accelerated adoption of digital accounts and transfers not only reduces dependence on cash, but also drives an evolution in the behavior of the Argentine consumer, who increasingly values ​​the flexibility and benefits that digital platforms provide for their transactions. daily,” he explained.