Adolescents and young people up to 24 years increasingly they make use of digital wallets and explain the growth of prepaid cards associated with these applications, which jumped by 52% in the last year.
In transaction volume, these plastics grew by 370% in the last twelve months and although its use is still much more limited than debit and credit cards, this growth speaks of a change in trend and a growing familiarization of generation Z with digital money.
According to data from Global Processing, a company that develops digital payment solutions in Latin America 4 out of 10 prepaid card holders are under 24 years of age.
Since the Argentine financial system allows those over 13 to create an account in an app to transact or invest, The minimum ages of wallet users fell a lot in recent years. Young people use these cards to pay in physical or virtual stores, especially to play online or access streaming services.
The report shows how, as these digital solutions advance and hand in hand with an increase in inflation these sectors of the population use less and less banknotes and they turn more towards digital money. Of the total money that circulated through prepaid cards, only 5% corresponds to cash withdrawal by ATM, while 90% was destined for purchases within the country and the other 5% to international consumption.
Young people are no longer so interested in owning plastic and 40% of the cards issued were in virtual format according to data from Global Processing, a company that handles the movement of 89% of the prepaid cards that operate in the country.
With a semi-annual growth of more than 60%, This payment method is used 52% for gaming and entertainment purchases, while with the physical card the largest amount of consumption occurs in supermarkets and food stores.
With a semi-annual growth of more than 60%, this means of payment is used 52% for gaming and entertainment purchases, while the largest amount of consumption with the physical card occurs in supermarkets and food stores, detailed the report.
“As leaders in the issuance of prepaid cards in Argentina, it seems important to us to make valuable information available to understand the movements of the industry and the demands of users. This allows us to anticipate consumption behaviors and dynamics. The fintech ecosystem is constantly evolving and at the forefront of digital payments,” said Patricia Furlong, CEO and President of Global Processing.
Although 35% of prepaid card users reside in the Buenos Aires Metropolitan Area (AMBA), A high level of demand was observed in the Pampean areaa, with 31% of users and almost the same percentage in volume and number of transactions. In terms of number of users, it is followed by the NOA and NEA regions, while Patagonia and Chile are the regions with the fewest users registered in the last year.
On a semi-annual basis, GP Insight is carried out based on the collection and analysis of statistical information from the company, which processes more than 2.7 billion transactions per year, with the aim of making available the latest trends in the fintech industry. Through Global Processing, companies, banks, fintechs and businesses can consolidate all money movements in one place.