BCRA regulations establish that, as of December 1, participants in the national payment system – banks and virtual wallets – that currently use recurring Debin to fund accounts They must discontinue this operation and enable TIP to their clients. The argument established by the BCRA is that it seeks to “prevent cases of fraud.”
However, Mercado Pago stated that the rule change “was driven by the banks” and that 4 million people who use Immediate Debit to deposit money into their digital accounts “will be affected.”
He Immediate Debit It is a system that It began to be used to deposit money in Mercado Pago almost three years agobecoming the funding channel most valued by people, for its “simplicity and security,” the company recalled.
From Mercado Pago they indicated that “the banks have managed to get the BCRA to replace this tool with another that has more friction for the user”, Pull Immediate Transfers that, according to fintech, “it still has flaws and is no good as a replacement.”
The Central Bank defined “immediate pull transfers” as “requests or requests for funds that allow through the account debit -on demand or payment- of the client receiving the request and with prior authorization or consent, the immediate crediting of funds to the account of the requesting client. HE It is an “immediate debit”, from which an app user can deposit money from other accountswhether banking or fintech.
“In our tests, 9 out of 10 people cannot deposit money into their accounts from the digital wallet, creating inconveniences in the experience by forcing users to go through multiple steps in their home banking – and even go to an ATM. to be able to operate. Therefore, we believe that discontinuing from December 1 a tool that has been working for years and is safe for millions of Argentines is negative,” they highlighted from Mercado Pago.
The Mercado Libre fintech highlighted that “In the context of an inflation of 124% year-on-year, banks seek to prevent millions of Argentines from being able to send money to their Mercado Pago digital account. Today, this account yields 94.6% annually (average of the last 7 days) and “It is a very convenient tool to protect yourself, at least in part, against the loss of purchasing power.”
Likewise, he highlighted that “Immediate Debit is the safest means of transfer that exists. It has the lowest fraud rate recorded in the country (0.02% of total transactions) and, in addition, when it occurs it is covered by Mercado Pago Despite this, and declaring as its objective to ‘prevent fraud’, on Thursday the 14th the BCRA eliminated this means of funding accounts and replaced it with immediate ‘pull’ transfers, generating difficulties where there were none.”
In that sense, he warned that “The announced measure is a new direct attack on financial inclusion, which will negatively affect the experience of millions of users and will induce the use of cash.”
Payment Market Conflict vs. banks: what the BCRA said
After the Mercado Pago accusation, The monetary authority came out to respond to the Mercado Libre fintech about the modifications in the transfer system.
The BCRA explained that The virtual wallet had accepted the change in regulations at the beginning of the year, and that its implementation was “consensus” with all market players.
“The Central Bank established modifications in the payment and transfer system that will begin to apply to the entire system (financial entities and virtual wallets) as of December 1 in order to prevent cases of fraud that affect users”highlighted the entity led by Miguel Pesce.
The purpose of this change, “consensus with all actors with participation in the country’s payment system, is to optimize operations using the instruments for which they were designed, improve the user experience and provide the system with better security standards,” said the BCRA.
He added that “The measures were agreed upon and at the beginning of the year published in the ‘CIMPRA Bulletins’, which constitute the agreements reached from the consensus within the Interbank Commission of Payment Methods of the Argentine Republic.”
This commission is a forum in which different actors in the payment and securities settlement systems (BCRA, Bank Associations, banks, electronic clearing houses, fintech, etc.) study, plan and monitor the evolution of payment methods. . CIMPRA newsletters act as a persuasive force or recommendation.
“The main change introduced is to organize the system between payments and transfers, to prevent confusion among users, and in this way Immediate Debits are limited to payment operations while transfers between accounts will be made through the Immediate Transfers system “Pull”. These modifications “they do not alter in any way the ability of users to manage their funds between the different providers of financial products”, The monetary authority responded, in reference to the accusations made by Mercado Pago.
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