Value Chain Definition on the Payment in Argentina.¶

The payment industry in Argentina encompasses a series of interconnected steps and participants that facilitate the transfer of monetary value between individuals, businesses, and other entities. This value chain is fundamental to the functioning of the economy, enabling commerce, financial transactions, and access to a wide range of services. Driven by technological advancements, regulatory initiatives, and changing consumer behavior, the Argentinian payment landscape is undergoing significant transformation, with a notable shift towards electronic and digital payment methods. The value chain can be segmented to understand the distinct roles and activities involved in processing a payment, from initiation to final settlement.

Value Chain outline¶

The value chain of the payment industry in Argentina can be outlined through the following comprehensive steps:

Identification and description of each step in the value chain.¶

Payment Initiation and Authorization: This initial step involves the actions taken by the payer to initiate a payment transaction and the subsequent process of verifying the availability of funds or credit and approving the transaction.
Transaction Processing: Once initiated and authorized, the transaction data is captured, formatted, and routed through the appropriate networks for subsequent steps.
Clearing: This step involves the exchange of transaction data between financial institutions and the calculation of the net amounts owed and due among them as a result of the transactions.
Settlement: This is the final step where the actual transfer of funds occurs between the accounts of the financial institutions involved, based on the net positions determined during clearing.
Scheme Management and Network Operation: This step involves the governance and operation of the rules, standards, and technical infrastructure that underpin specific payment methods (e.g., card networks, immediate transfer schemes).
Account and Instrument Provision: This foundational step involves providing individuals and businesses with the necessary accounts and payment instruments (cards, digital wallets, etc.) to participate in the payment system.
Acceptance and Merchant Services: This step focuses on enabling merchants and service providers to accept electronic payments from their customers, including providing the necessary tools and services.
Regulation and Oversight: This overarching function involves the establishment of rules, supervision of participants, and maintenance of the stability and efficiency of the national payment system by regulatory authorities.
Technology and Infrastructure Provision: This supportive step includes the companies and services that provide the underlying technology, hardware, and connectivity required for the payment system to function.

Identification and description of segments for each step of the value chain.¶

Payment Initiation and Authorization:
- Card Present Authorization: Transactions initiated using a physical card at a point-of-sale terminal.
- Card Not Present Authorization: Transactions initiated remotely, typically online or via phone, without the physical card being present.
- Account-to-Account (A2A) Payment Initiation: Payments initiated directly from one bank account to another, including immediate transfers.
- Digital Wallet/QR Code Initiation: Payments initiated through mobile applications or digital wallets, often utilizing QR codes for convenience.
Transaction Processing:
- Front-end Processing: Capturing and initial formatting of transaction data at the point of sale or initiation.
- Back-end Processing: Routing, switching, and authorization of transactions through the relevant networks and to the issuer.
Clearing:
- Batch Clearing: Processing groups of transactions together at scheduled intervals (Historically used for checks, still relevant for some lower-value transactions).
- Real-Time/Near-Real-Time Clearing: Continuous or near-instantaneous clearing of transactions, particularly for immediate transfers.
Settlement:
- Net Settlement: Settling the aggregated net positions of participants at the end of a clearing cycle.
- Gross Settlement: Settling each transaction individually on a real-time basis (e.g., through the MEP for high-value transfers).
Scheme Management and Network Operation:
- Card Network Management: Defining rules, standards, and operating the infrastructure for card payments (e.g., Visa, Mastercard).
- Transfer Scheme Management: Governing the rules and infrastructure for electronic fund transfers, including immediate transfers (e.g., Transferencias 3.0).
- Digital Wallet/QR Code Scheme Management: Establishing interoperability standards and operating the platforms for digital wallet and QR code payments.
Account and Instrument Provision:
- Bank Account Provision: Offering traditional checking and savings accounts (CBU).
- Virtual Account Provision: Offering accounts associated with digital wallets (CVU).
- Card Issuance: Issuing credit, debit, and prepaid cards.
- Digital Wallet Provision: Providing mobile applications and platforms for managing digital payments.
Acceptance and Merchant Services:
- Physical Point of Sale Acceptance: Providing terminals and services for accepting payments in brick-and-mortar stores.
- E-commerce Acceptance: Offering payment gateways and solutions for accepting payments on online platforms.
- Payment Facilitation/Aggregation: Providing simplified access to electronic payment acceptance for merchants.
Regulation and Oversight:
- Regulatory Policy Setting: Defining the legal and regulatory framework for the payment system.
- Supervision and Compliance: Monitoring participants to ensure adherence to regulations.
- Systemic Risk Management: Ensuring the stability and resilience of the payment infrastructure.
Technology and Infrastructure Provision:
- Payment Software and Platform Development: Creating the software and platforms that power payment processing, digital wallets, etc.
- Hardware Provision and Maintenance: Supplying and maintaining POS terminals, ATMs, and other physical devices.
- Network Connectivity: Providing secure and reliable communication networks for transaction data.

List of types of players in each segment¶

Payment Initiation and Authorization:
- Consumers
- Merchants (physical and online)
- Digital Wallet Users
- Mobile Payment App Users
Transaction Processing:
- Processors (third-party companies or in-house divisions of banks/networks)
- Payment Gateways
- Payment Facilitators/Aggregators
Clearing:
- Electronic Clearing Houses (CECs)
- Direct Participants in Clearing (primarily banks)
Settlement:
- Central Bank (BCRA) (administers the MEP)
- Financial Institutions (settling balances through the MEP)
- Clearing Houses (managing settlement for their participants)
Scheme Management and Network Operation:
- Card Networks (Visa, Mastercard, Cabal, American Express, etc.)
- Transfer Scheme Administrators (e.g., Coelsa, Interbanking, Prisma, Red Link for Transferencias 3.0)
- Digital Wallet/QR Code Scheme Administrators (e.g., Modo, Mercado Pago)
Account and Instrument Provision:
- Commercial Banks
- Non-Bank Financial Institutions
- Fintech Companies (issuing prepaid cards, virtual accounts, digital wallets)
- Credit Card Companies (issuing proprietary cards)
Acceptance and Merchant Services:
- Acquirers (Banks and specialized companies)
- Aggregators/Sub-acquirers/Payment Facilitators (PSPs)
- Technology Providers (POS terminal providers, gateway providers)
Regulation and Oversight:
- Central Bank of the República Argentina (BCRA)
- Secretaría de Comercio
- Comisión Nacional de Defensa de la Competencia (CNDC)
Technology and Infrastructure Provision:
- Fintech Companies
- Software Development Companies
- Hardware Providers
- Telecommunications Companies

Detailed description of the main activities within each segment.¶

Payment Initiation and Authorization:
- Customer Action: The payer presents a payment instrument (card, phone with digital wallet, provides account details) to the merchant or enters payment information online.
- Terminal/Gateway Interaction: The POS terminal or online payment gateway captures the transaction details.
- Authorization Request: A request is sent to the acquirer and then routed to the issuer to verify funds/credit and authenticate the user.
- Issuer Response: The issuer approves or declines the transaction.
- Notification: The approval or decline is communicated back through the chain to the merchant and payer.
Transaction Processing:
- Data Capture: Recording all relevant details of the transaction.
- Data Transmission: Securely sending transaction data between parties.
- Switching: Routing transactions to the correct networks and endpoints.
- Authentication: Verifying the identity of the payer.
- Stand-in Processing: Approving transactions on behalf of an issuer if they are temporarily unavailable (done by processors/networks).
Clearing:
- Receiving Transaction Data: Gathering all processed transactions from participants.
- Reconciliation: Matching transactions between sending and receiving institutions.
- Netting: Calculating the net financial position (amount owed or due) for each participant.
- Reporting: Providing participants and the central bank with details of the clearing process and net positions.
Settlement:
- Instruction Processing: Receiving settlement instructions based on clearing results.
- Fund Transfer: Moving funds between the settlement accounts of participating institutions, typically held at the central bank (MEP).
- Confirmation: Notifying participants that settlement is complete.
Scheme Management and Network Operation:
- Rule Definition: Establishing the operating rules, technical standards, and commercial terms for using the payment method.
- Network Maintenance: Ensuring the reliable and secure operation of the technical infrastructure.
- Participant Onboarding: Bringing new financial institutions and other eligible entities onto the network/scheme.
- Innovation and Development: Introducing new features and technologies within the scheme (e.g., contactless, tokenization).
Account and Instrument Provision:
- Account Opening and Management: Creating and maintaining customer accounts.
- Instrument Issuance: Producing and delivering physical and virtual payment instruments.
- Funding and Loading: Enabling users to deposit funds into their accounts or load value onto prepaid instruments.
- Customer Service: Providing support to account holders and instrument users.
Acceptance and Merchant Services:
- Merchant Enrollment: Signing contracts with businesses to accept specific payment methods.
- Provision of Acceptance Devices/Software: Supplying POS terminals, online payment gateway integrations, and mobile acceptance solutions.
- Transaction Management: Providing merchants with tools to view, manage, and reconcile transactions.
- Funding Merchants: Transferring settled funds to the merchant's bank account.
- Value-Added Services: Offering additional services like analytics, loyalty programs, and fraud monitoring to merchants.
Regulation and Oversight:
- Licensing and Authorization: Granting permissions for entities to operate within the payment system.
- Setting Standards: Defining technical, security, and operational standards.
- Monitoring and Enforcement: Supervising compliance and taking action against non-compliant entities.
- Promoting Competition and Efficiency: Implementing policies to foster a competitive and efficient market.
- Consumer Protection: Establishing rules to protect users of payment services.
Technology and Infrastructure Provision:
- Developing Payment Software: Creating core banking systems, payment gateways, digital wallet applications, etc.
- Providing Hardware: Manufacturing and distributing POS terminals, ATMs, and other necessary equipment.
- Ensuring Connectivity: Providing secure and reliable network infrastructure for transaction routing and communication.
- Security Solutions: Implementing and managing security measures to protect against cyber threats and fraud.

List examples of key players with detailed profiles.¶

Banco Central de la República Argentina (BCRA): The central bank plays a pivotal role in the Argentinian payment system as the primary regulator and overseer. It sets monetary policy and ensures the stability and efficiency of the financial system, including payments. The BCRA administers the Medio Electrónico de Pagos (MEP), the critical real-time gross settlement system. It also regulates financial entities and PSPs and has been a driving force behind initiatives promoting the digitalization and interoperability of payments, such as Transferencias 3.0 and the widespread adoption of QR codes.
COELSA (Compensadora Electrónica S.A.): A key Electronic Clearing House (CEC) authorized by the BCRA, primarily responsible for the clearing of low-value electronic payments in Argentina. COELSA processes a large volume of transactions, including checks, electronic transfers, and direct debits, calculating the net positions of participating financial institutions before settlement occurs in the MEP. It is recognized as a systemically important financial market infrastructure.
Prisma Medios de Pago S.A.: Historically a dominant player in the Argentinian card payment market, involved in both adquirencia and processing. Until recently, Prisma held exclusive agreements for processing and acquiring certain major card brands. Regulatory interventions have aimed to increase competition in these segments, leading to changes in its structure and operations. Prisma provides services to merchants to accept card payments and handles the technical processing of these transactions. It is also involved in other payment initiatives like the Todo Pago platform.
Mercado Pago: A prominent fintech player, particularly strong in the Account and Instrument Provision and Acceptance and Merchant Services steps, acting as a leading Payment Facilitator/Aggregator. Mercado Pago offers a popular digital wallet (CVU) and a comprehensive platform for online and offline payments, including a significant presence in the QR code payment space. It enables individuals to send and receive money and allows businesses, especially SMEs, to accept various digital payment methods easily.
Banco de la Nación Argentina: As a major state-owned bank, it is a significant participant across multiple steps of the value chain, including Account and Instrument Provision (offering traditional bank accounts and issuing cards) and playing a notable role in credit card financing. Banks like Banco Nación are essential for providing access to the formal financial system and are direct participants in the clearing and settlement processes.
Tarjeta Naranja: Identified as a principal issuer of credit cards in Argentina, demonstrating the importance of non-bank entities in providing payment instruments to consumers. While originating outside the traditional banking sector, companies like Tarjeta Naranja have built a significant customer base and play a key role in providing access to credit and facilitating transactions for their cardholders.
Getnet Argentina (part of Grupo Santander): An example of a significant player in the Adquirencia and Acceptance step, representing increased competition in this segment. Getnet provides solutions for merchants to accept electronic payments, competing with traditional acquirers and other PSPs.

Volumes and Sizes¶

The Argentinian payment industry has shown significant growth in electronic transaction volumes in recent years, reflecting increasing digitalization:

The e-commerce market size was estimated at USD 26.7 billion in 2023.
In 2024, debit card transactions reached 2,979 million operations, with a value of AR$ 51.713 trillion. Credit card transactions totaled 1,913 million operations, valued at AR$ 70.587 trillion. Prepaid card transactions increased by 39% in volume and 234% in value in 2024.
Immediate transfers have seen exponential growth, with 1,796.4 million operations in the third quadrimestre of 2024, a 47% increase year-on-year. QR code transfers within this category grew by 212%. In November 2024, immediate "push" transfers numbered 580.4 million for a value of AR$ 51 trillion.
By 2024, Argentina had nearly 200 million CBU and CVU accounts, indicating a high level of financial inclusion through access to traditional banking and digital wallet accounts.

Market share data for specific players is available for certain segments, such as the top five credit card issuers holding 64% of the market in October 2024. Digital wallets accounted for 38% of e-commerce payments and 18% of POS payments in 2024, with Mercado Pago dominating the digital wallet market.

Current Bottlenecks and Challenges¶

The payment industry in Argentina faces several challenges that can impact its continued growth and efficiency:

Inflationary Environment: The persistent high inflation creates volatility in transaction values and can distort economic signals, impacting pricing and investment decisions for businesses and consumers within the payment ecosystem.
Regulatory and Policy Uncertainty: While there has been a push for modernization and interoperability, changes in regulations and economic policies can create uncertainty for businesses operating in the sector, affecting long-term planning and investment attraction. The need for clear and stable rules is highlighted in various economic contexts that are relevant to the payment chain.
Infrastructure Gaps: Despite advancements, ensuring reliable and accessible digital infrastructure, particularly in less urbanized areas, remains a challenge for expanding electronic payment adoption to the entire population and all types of businesses.
High Level of Informality: The significant informal economy means that a substantial volume of transactions still occurs in cash, limiting the reach and potential of digital payment solutions.
Need for Further Interoperability: While progress has been made with initiatives like Transferencias 3.0, ensuring seamless and cost-effective interoperability across all payment instruments, platforms, and participants remains an ongoing effort.
Security and Fraud Risks: The increasing volume and complexity of electronic transactions necessitate continuous investment in robust security measures and fraud prevention mechanisms to maintain user trust and system integrity.
Access to Financing: For smaller businesses and fintech innovators, securing adequate financing can be a bottleneck for developing and scaling new payment solutions and expanding acceptance infrastructure.
Market Concentration and Competition: While regulatory efforts have promoted competition, historical market structures can still pose challenges for new entrants and limit choices for merchants and consumers in certain areas of the value chain.

References¶

Banco Central de la República Argentina. Sistemas de Pago.
Banco Central de la República Argentina. Medios de pago electrónico.
Argentina.gob.ar. pago electrónico.
Latam Fintech Hub. Paytechs, los nuevos eslabones clave de la cadena de valor en los pagos digitales.
Banco Central de la República Argentina. Sistema Nacional de Pagos.
Banco Nación. Link Pagos | Una solución integral de pagos y cobranzas.
CCIRR. lOS MEDIOS DE PAGO EN ARGENTINA.
Deloitte. El RIGI como Mecanismo de Promoción de las Cadenas de Valor Productivas.
OECD. Sesión I: Competencia, Fintechs y Open Banking.
Mercado Pago Developers. Checkout API.
Repositorio CEDES. Estructura de Mercado y Mecanismos de Pago en Salud:.
IEF. El negocio de adquirencia de pagos: evolución reciente y desarrollos de futuro.
iupana. Una vacante fintech: digitalizar las cadenas de distribución y pagos.
Argentina.gob.ar. Competencia, Fintech.
Jus.gob.ar. BANCO CENTRAL DE LA REPUBLICA ARGENTINA.
Lemon Argentina. ¿Qué es Coelsa y por qué es importante el ID Coelsa? | Centro de Ayuda.
Argentina.gob.ar. Sujetos Obligados.
Cajero24. Soluciones para pagos digitales.
Mecalux.com.ar. ¿Qué es la cadena de valor logística?.
BCRA. SISTEMA NACIONAL DE PAGOS – CÁMARAS ELECTRÓNICAS DE COMPENSACIÓN Texto ordenado al 13/09/2024.
BCRA. Informe de Inclusión Financiera.
Getnet Argentina. Actividades prohibidas para el uso de Getnet.
International Labour Organization. GUÍA GENERAL PARA EL DESARROLLO DE CADENAS DE VALOR.
Marval, O'Farrell & Mairal. Se amplía el universo de proveedores de servicios de pagos regulados y se establecen nuevas medidas de interoperabilidad para pagos con QR.
BCRA. Sistemas de Pago.
BCRA. Sistemas de Pago.
El nuevo sistema de transferencias 3.0: un breve repaso.
World Bank. World Bank Document.
CONICET. Estructura de la red y fragmentación de los mercados interbancarios de la Argentina | Documentos de Trabajo.
BCRA. Informe de Pagos Minoristas | Primer semestre de 2021.
El Cronista. El Banco Central impone más controles a los Proveedores de Servicios de Pago.
Argentina.gob.ar. INFORMES DE CADENAS DE VALOR.
HubSpot. Cómo hacer una cadena de valor paso a paso - Blog de HubSpot.
Latam Fintech Hub. La evolución de la Adquirencia, en medio de una revolución tecnológica de los servicios financieros en Latam.
BOLETIN OFICIAL REPUBLICA ARGENTINA. BANCO CENTRAL DE LA REPÚBLICA ARGENTINA - Comunicación “A” 7769/2023.
AFIP. Entidades financieras, de seguros y PSP - Ganancias.
Tendencias y oportunidades de la industria de medios de pago en argentina.
Boston Consulting Group. Industria de medios de pago en Latinoamérica crecerá a 8.3%, ritmo sólo por detrás de Asia Pacífico.
Infobae. ¿Crédito o débito?: cómo impactaron las cuotas, los pagos digitales y el QR interoperable en el uso de las tarjetas.
Universidad de San Andrés. Universidad de San Andrés Escuela de Administración y Negocios Maestría en Gestión de Servicios Tecnológicos y Telecomunica.
Mordor Intelligence. Mercado de pagos en Argentina tamaño, participación y análisis de la industria.
BCRA. EXTERIOR Y CAMBIOS Texto ordenado al 10/02/2025.
Visa. Notas de prensa | Visa establece operaciones en Argentina.
rankingslatam. Mercado de Tarjetas de Crédito y Débito en Argentina - Rankings a Diciembre de 2024.
Infobae. Fuerte cambio en los medios de pago: las transferencias inmediatas de dinero aumentaron casi 50% en 2024.
MONEI. ¿Qué son los proveedores de servicio de pago o PSP? ¡Te explicamos!.
rankingslatam. Mercado de tarjetas de crédito y débito de Argentina registra importante aumento en transacciones - Ranking 2024.06.
Economía Solidaria. Argentina aumentó a casi 200 millones de cuentas CBU+CVU en 2024.
RCTZZ. Insights - Más obligaciones para proveedores de servicios de pago.
Bolsa de Comercio Rosario. Sistemas de Clearing y Redes de Seguridad - Capacitaciones.
CONICET. La economía argentina en la posconvertibilidad: problemas.
Cepal. La industria argentina frente a los nuevos desafíos y oportunidades del siglo XXI.
El blog de Pomelo. ¿Qué es la adquirencia y cuál es su papel en el cobro con tarjetas?.
Kushki. Una introducción a la Adquirencia: el motor que impulsa la eficiencia en los pagos electrónicos..
Americas Market Intelligence. E-commerce en Argentina: estadísticas y datos 2023.
Argentina.gob.ar. Unclassified DAF/COMP/LACF(2017)13.
Infobae. La Argentina es el país de América Latina donde más se usan las billeteras digitales para pagar en los comercios.