The report concludes that after the impact of the pandemic in previous years, electronic commerce continues to advance throughout the world with a global growth of 14%. “Argentine e-commerce continues to grow at an exponential rate, with no signs of slowing down,” said Juan D’Antiochia, head of Latin American Business Solutions at FIS, in a statement.
He pointed out that “although credit cards continue to be the leading payment method in the region, alternative payment methods (APM) began to conquer the country and businesses need to incorporate technologies that allow new digital payment methods such as those that allow quoting payments (Buy now Pay Later) to provide a payment experience that responds to the new demands of the modern consumer”.
According to the study, mobile purchases are the fastest growing at a rate of 31% per year, and cash is projected to decline by 12% per year over the next four years.
Payment methods
The most popular online payment methods in 2021 were credit cards (37.2%), digital wallets (25.6%), debit cards (18.4%) and bank transfers (6.7%). While credit cards will be the main form of payment at the point of sale by 2025, virtual wallets are the method that will grow the most.
Credit cards are projected to remain the most important online payment method by 2025, but their market share will fall to 32.9%; while digital wallets will grow by 32.4% and will be the fastest growing online payment method in Argentina.
Cash-on-delivery and prepaid will decline rapidly and will account for just 1.5% of the e-commerce market by 2025. Meanwhile, the POS (Point of Sale) market in Argentina is expected to grow by 42% from this year to 2025, and will reach US$139 billion.
Currently, the most popular payment method in stores is cash with 33.8%, followed by debit cards (23.8%) and credit cards (23.5%).
By 2025, debit cards will overtake cash as the most popular method at merchants, with a 25.2% market share. The use of cash in stores will decrease and its market share is expected to reach a floor of 21.7% by 2025, the FIS report concluded.
Source: Ambito
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