Welcome to Argentina
Payment Market Overview
Argentina is the third largest country in Latin America. Home to 18 million online consumers who generated a whopping $6 billion USD of revenue in 2020 alone, it's unsurprising that it is rapidly becoming a key eCommerce market for businesses looking to expand into the Latin America region.
The Market Landscape
Like many emerging markets, expanding into the Argentinian market can be tricky, and local payment method knowledge is essential to take advantage of the lucrative opportunities the market presents. Card payments are the dominant payment method in this region with 55% citing this as their preferred payment type, followed by cash (40%), bank transfers (3%), and e-wallet solutions (1%).
The Local Payment Culture
Dominated by local payment methods - providing customers with the checkout method they prefer will be key to success in this region:
There were approximately 30 million active credit and debit cards in Argentina's circulation, in 2020, with more than 77% of all online sales being made using credit cards. However, with only 33% of Argentinian buyers having access to international credit cards, meaning that without adopting a tailored payment strategy, merchants risk missing out on approximately 70% of the $6 billion USD eCommerce market.
The second largest payment method after cards is cash vouchers, with players such as Rapipago, Pago Facil, and Cobro Express dominating the market. These businesses provide a cash voucher method that can be paid in over 4,000 acceptance points across the country for the payment of utility bills, online purchases, college fees and more. With the unbanked population in Argentina currently sitting at around 51%, offering cash voucher methods is crucial for merchants looking to access an entirely new, and large portion of the market.
Bank transfers via online and mobile banking are gaining popularity amongst Argentinian consumers, now accounting for roughly 9% of the region's eCommerce revenue. This is largely a result of increased availability of mobile services. Bank transfers are a convenient way to acquire consumers who do not have a local credit or debit card.
Opportunity for eCommerce
Argentina was once a notoriously difficult market for foreign merchants to enter due to the number of protective policies in place to support the local currency. Yapstone's services and expertise combined remove the complexities of doing business here, meaning global merchants can now enter Argentina with minimal effort. Find out how we can help you optimise growth in this key market by downloading our Argentina Country Guide.
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