Recently, a fintech company has made progress on a new feature of its app to start paying tips digitally. Although it is a test that has already been put into operation, other fintech companies could follow the same path.
Something that characterizes Argentina is the use of cash tips. Although the Digitization of payments continues to advanceOr, one of the clearest resistances is with the use of tips in restaurants and bars, which currently represent 10% of the total amount. Many diners choose to pay the total bill with a card, transfer or QR code, but cash for tips is still more than valid.
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In that place that has not yet been explored, they seek to position themselves fintechsRecently, Mercado Pago launched a new feature in its widely used app specifically for paying tips for free and digitally in bars, cafes and restaurants. This way, the problem of not having cash when leaving money to pay for the waiters’ service is avoided.


Although the Mercado Libre virtual wallet had launched a pilot test of this function earlier this year, and as of July 25, the solution is available for more than 4,000 food establishments in a first stage. Over the next few weeks, it will be progressively enabled for all food establishments that use Mercado Pago’s payment tools.
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Mercado Pago launched a new version for its users that allows paying tips digitally
Thus, Mercado Libre seeks to “get ahead” of the rest of the fintechs that will seek a similar solution for tips in an Argentina where, despite the advance of digitalization of payments, cash withdrawals are still very present. According to a recent report by Payway, cash withdrawals advanced 32.7% in the second quarter of 2024, compared to the same period in 2023. While ATM withdrawals only grew 9.84% in the same period.
Javier Milei, for his part, will propose a law to formalize tips on credit and debit cards, while his government is paving the way for travelers can pay for public transport with QR codes or a card As in New York or London, cash is still required at kiosks in Buenos Aires metro stations to top up a public transport card, although digital top-up options are also available.
Source: Ambito

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