Payment Market Conflict vs. banks for transfers: what the BCRA said

Payment Market Conflict vs.  banks for transfers: what the BCRA said

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,” noted 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.

The Mercado Pago complaint

This Monday, Mercado Pago accused banking entities of promoting the change in regulations that establishes the change of account funding through Immediate Debit-Debin for the Pull Immediate Transfers mechanism and that, it assured The company seeks to “prevent 4 million people from generating income.”

From Mercado Pago they 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.”

According to them, Debin “is the safest means of transfer that exists” and “has the lowest fraud rate recorded in the country (0.02% of total transactions).”

Consequently, the replacement by immediate “pull” transfers – they assured – “It is negative”, since it “has more friction for the user” and generates “difficulties where there were none.”

“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,” the company said in a statement.

“The solution they propose, ‘Immediate Pull Transfers’, still has flaws and is no good replacement. 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,” said Mercado Pago.

Source: Ambito

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