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Argentina leads the region in payments with virtual wallets

Argentina leads the region in payments with virtual wallets

Argentina is the leading country in the region in payments of e-commerce with digital wallets, with a third of operations paid in this way, almost double the number of transactions than in Brazil. Thus, the country demonstrates clear growth in digital payment methods, however there is still work to be done: credit cards continue to prevail.

At the point of sale, In our country, cash still reigns as the main payment method (27%), but below Mexico (38%) or Peru (35%). Likewise, it is estimated that by 2027 A2A (Account to Account) payments will increase from 10% to 12% of the value of electronic commerce transactions. All this data is revealed in the report “The Global Payments Report 2024”.

Worldpay, LLC, a global leader in the payment technology and solutions sector, presented its report “The Global Payments Report 2024”, in its ninth edition, which maps 40 select markets that represent 88% of global GDP. Developed in five regions of the world, it highlights not only how consumers are paying in different regions, but also projections for the next four years.

“The Global Payments Report has already become a definitive guide for the market. “It is a solid piece of research and an important tool that provides merchants with competitiveness and information to guide their business plans, considering sustainable growth for the next four years,” he declared. Juan Pablo D’Antiochia, General Manager of Worldpay Latam.

According to the study, today Argentina leads the regional ranking of payment with digital wallets with 31% of transactions, strongly ahead of the rest of the Latin American countries and almost doubling, for example, Brazil, which stands at 16%. This trend is going to consolidate and It is expected that by 2027, 44% of the value transacted in Argentina (e-commerce) will be through payment with wallets.

Argentina follows the Latin American pattern, according to which Credit cards are the main online payment method: accounted for 29% of the value transacted in e-commerce in 2023while in Argentina they amount to 25%.

Specifically At the point of sale, in Argentina cash continues to prevail as the most used payment method, with 27% of transactions. But towards 2027 this index tends to reduce to 22%, according to Worldpay projections. This decline has boosted digital wallets, which, although in 2023 they held 18% of the volume, in 2027 they are expected to reach 27% at the point of sale, almost equal to cash payments. Everything shows that this method will be consolidated in four years.

J.uan Stadler, commercial vice president of Worldpay Latamcommented: “The growth outlook for digital wallets in Argentina is surprising and even exceeds projections for Brazil. This shows the dynamism and sustained evolution of Argentina as a relevant player with enormous potential in regional and global e-commerce, driven by leading companies, savvy consumers and e-commerce players eager to capture the long-awaited market growth.”

E-commerce: what payment methods do the rest of the countries use?

The findings of the annual report “The Global Payments Report 2024” show that Today digital wallets are the preferred payment option in the world. In 2023, they represented the 50% of global spending on e-commerce (more than US$3.1 billion) and the 30% of global spending at the point of sale (more than US$10.8 billion). Already the fastest-growing payment method, digital wallets are expected to represent more than $25 billion in global transaction value (49%) in e-commerce and POS by 2027.

The report also predicts that the participation of credit and debit cards in the value transacted in e-commerce as a direct payment method will decrease slightly towards 2027. According to the study, global e-commerce will exceed US$6.1 billion in 2023 and is growing at more than double the rate of global points of sale. Composite e-commerce growth is projected to be 9% (vs. 4% for POS) by 2027. Therefore, e-commerce as a percentage of all commerce continues to increase, reaching 14.4% by global level in 2023 and is expected to exceed 17% by 2027, according to Worldpay data.

online-consumer-e-commerce

The report forecasts the share of credit and debit cards to decline slightly by 2027.

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E-commerce: Brazil led A2A payments

Our region had the highest percentage of account-to-account (A2A) payments penetration of any global region in 2023, with 20% of the value transacted in e-commerce. The overwhelming success of Brazil’s instant payment system, Pixis driving the increase in online account-to-account payments throughout Latin America.

Brazil leads the regional adoption of A2A payments with 30% of the transaction value in 2023making it the most popular online payment method in Brazil.

Source: Ambito

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