Value Chain Report on the Payment Industry in Argentina¶
Abstract¶
Argentina’s payment industry has experienced a paradigm shift over the past decade, moving rapidly from cash‐dominant transactions to a diversified mix of card, account-to-account (A2A), and wallet-based payments. This report maps the entire value chain—from payment initiation to final settlement—identifies the principal actors, quantifies market volumes, and analyses the commercial relationships, business models, and bottlenecks that shape day-to-day operations. Drawing on regulatory documents, market data, and industry literature, we find a digitally vibrant yet structurally complex ecosystem, where robust innovation co-exists with macro-economic instability, infrastructure gaps, and regulatory flux. Key findings indicate (i) surging volumes of immediate transfers and QR-code payments (47 % and 212 % YoY growth, respectively, in 2024), (ii) growing but still concentrated acquiring and issuing markets, and (iii) persistent friction points linked to inflation, informality, and uneven interoperability. Recommendations revolve around deepening interoperability, strengthening fraud-mitigation technology, expanding rural connectivity, and maintaining a stable, innovation-friendly regulatory framework.
Introduction¶
Overview of the Payment Industry in Argentina¶
Argentina’s 46 million inhabitants execute more than five billion electronic payment operations per year, representing AR$ >170 trillion in value (2024). Historically dominated by cash, the landscape has changed dramatically owing to (a) the Central Bank’s (BCRA) pro-digital agenda (e.g., Transferencias 3.0, QR-code interoperability), (b) the exponential growth of e-commerce (USD 26.7 billion, 2023), and (c) the entry of agile fintechs such as Mercado Pago, Ualá, and Modo. The market now spans physical card transactions, instant A2A transfers, and digitally native wallet payments, all interacting with legacy infrastructures and stringent capital-control policies.
Purpose and Scope of the Report¶
The purpose of this report is to deliver a holistic, academically styled value-chain analysis of the Argentine payment ecosystem. Specifically, we:
• Define every step and sub-segment of the chain.
• Profile key players, including their market shares and activity volumes.
• Dissect commercial relationships, fees, and business models.
• Identify structural bottlenecks and emerging challenges.
• Offer evidence-based conclusions and avenues for further research.
The scope spans retail and low-value wholesale payments; high-value interbank wholesale payments are referenced only where they intersect with retail clearing and settlement (e.g., MEP).
Value Chain Definition¶
1. Step-by-Step Description¶
| Step | Key Activities | Typical Time Frame | Representative Players | Core Infrastructure |
|---|---|---|---|---|
| Payment Initiation & Authorization | • Card present/not-present entry • QR scan, biometric or PIN authentication • ISO 8583/ISO 20022 message generation |
Real-time (milliseconds-seconds) | Consumers, Merchants, Digital Wallet Users | POS terminals, payment SDKs, mobile apps |
| Transaction Processing | • Data capture • Switching/routing • Stand-in risk checks |
<1 s (cards) to a few seconds (wallets) | Prisma, FirstData/Fiserv, Payway, dLocal | Processor data centers, cloud infrastructure |
| Clearing | • Reconciliation • Netting calculations • Generation of clearing files |
Batch (end-of-day) for cards; near-real-time for A2A | COELSA, Interbanking, Red Link, Banelco | Electronic Clearing Houses |
| Settlement | • Fund transfers across settlement accounts • Liquidity management |
RTGS (MEP) intra-day; net settlement T+0 | BCRA (MEP), Commercial Banks | MEP RTGS platform |
| Scheme Management & Network Operation | • Rule-setting, interchange matrix, fraud rules • Brand marketing |
Continuous | Visa, Mastercard, Cabal, American Express; Transferencias 3.0 Hub | Card networks, central switch |
| Account & Instrument Provision | • Account onboarding (CBU/CVU) • Card issuance (credit, debit, prepaid) • Wallet provisioning |
Ongoing | Banco Nación, Santander, Ualá, Mercado Pago | Core banking, wallet ledgers |
| Acceptance & Merchant Services | • POS/MPOS deployment • E-commerce gateways • Funding & reconciliation |
Daily funding typical | Getnet, Mercado Pago, Todo Pago, Naranja Pay | Acquirer host, merchant portals |
| Regulation & Oversight | • Licensing & supervision • Consumer protection • Competition policy |
Continuous | BCRA, CNDC, Secretaría de Comercio | Regulatory frameworks |
| Technology & Infrastructure Provision | • Software platforms • Hardware (POS, ATMs) • Cyber-security & connectivity |
Continuous | Verifone, Ingenico, Nubiral, Telecom Argentina | Cloud, telecom backbones |
2. Segment-Level Granularity¶
• Card-present vs. card-not-present authorization
• Real-time vs. batch clearing
• Net vs. gross settlement
• Traditional bank accounts (CBU) vs. virtual accounts (CVU)
• Physical POS vs. e-commerce gateways vs. QR/softPOS acceptance
3. Main Activities Within Each Segment¶
The activities have been fully enumerated in the context section, ranging from customer authentication to systemic risk management. A brief recap emphasises:
– Risk scoring and fraud screening at processors and issuers.
– Reconciliation dashboards and analytics for merchants.
– Network tokenisation and contactless enablement by schemes.
– Remote key injection and certification for POS hardware.
– Compliance reporting to BCRA (AML, KYC, cybersecurity).
Players Analysis¶
Market Structure Snapshot¶
| Chain Step | Leading Players (Illustrative) | Estimated Share / Volumes (2024) |
|---|---|---|
| Issuers (Credit) | Banco Galicia, Banco Nación, BBVA, Santander, Tarjeta Naranja | Top 5 issuers control ≈ 64 % of 1.9 bn credit card tx |
| Issuers (Debit/Prepaid) | Banco Nación, Mercado Pago, Ualá, Brubank | Debit: 2.98 bn tx; prepaid: 39 % YoY volume growth |
| Acquirers | Prisma/Payway, Fiserv/FirstData, Getnet, Citrus PSP | Prisma/Fiserv historically >70 % of POS volumes; rising share for Getnet |
| Digital Wallets | Mercado Pago, Modo, Ualá, Naranja X | Wallets = 38 % of e-commerce and 18 % POS payments |
| Processors | Prisma, Fiserv, dLocal, PayU | Handle >90 % of domestic card switching |
| Clearing Houses | COELSA, Interbanking, Red Link | Cleared >1.8 bn immediate transfers (2024) |
| Scheme Operators | Visa, Mastercard, Cabal, Transferencias 3.0 Hub | Visa/Mastercard ≈90 % of card purchase volume |
| Technology Vendors | Verifone, Ingenico, Wordline, Nubiral | 1.6 m+ active POS devices nationwide |
Representative Player Profiles¶
- Banco Central de la República Argentina (BCRA) – regulator and MEP operator, spearheaded Transferencias 3.0 for interoperable A2A/QR.
- Prisma Medios de Pago – former vertically integrated behemoth; post-regulatory divestitures, remains leading processor/acquirer (Payway) and manages Visa issuing processing.
- Mercado Pago – fintech super-app; 15 m+ wallet users, dominant QR network in groceries, gas stations, and SMEs; provides MPOS dongles, BNPL, crypto.
- COELSA – systemically important clearing house; processes low-value ACH, direct debits, and immediate transfers, interfacing with >60 financial entities.
- Getnet Argentina – Santander-owned acquirer; over 180 k merchants, fast follower on softPOS and Tap-to-Phone solutions.
- Tarjeta Naranja – non-bank credit card issuer with strong provincial footprint; ~6 m cards in force, loyalty-led strategy.
Growth Metrics¶
• Immediate transfers: 580 m operations in Nov-2024 alone (AR$ 51 tn).
• Debit card usage: +23 % volume growth YoY; credit card ARPU up 31 % in real terms.
• Wallet accounts: nearly 200 m combined CBU + CVU, exceeding adult population due to multi-account users.
Commercial Relationships¶
How Players Interact¶
- Merchant ↔ Acquirer/PSP: MDR contract (average 2.2 %–3.5 % for cards; <0.8 % for A2A QR).
- Acquirer ↔ Scheme ↔ Issuer: Four-party model sets interchange (0.5 %–1.8 % capped by BCRA) and assessment fees (≈ 0.12 %).
- Processor ↔ Acquirer/Issuer: SLA-driven per-tx fee (AR$ 1.5–3.0) plus monthly minimum.
- Clearing House ↔ Bank: Volume-tier pricing (≈ AR$ 0.15/tx batch; AR$ 0.30 real-time).
- Consumer ↔ Issuer: Annual card fees (AR$ 6 000–28 000), interest on revolving (TEA > 160 %), or zero-fee basic accounts.
- Technology Vendor ↔ Acquirer: POS terminal sale (~US$ 150) or rental (AR$ 1 500/mo); software maintenance contracts.
Products & Services Exchanged¶
• Tangible: POS hardware, NFC antennas, EMV cards.
• Intangible: Authorization messages, risk scores, settlement files, token vault services, brand licences.
• Financial: Interchange flows, net-settlement movements, working-capital funding for merchants (T+1 vs. T+8).
Business Models (Revenue Logic)¶
| Player Type | Primary Revenue Streams |
|---|---|
| Issuer | Interchange fee, interest margin, cardholder fees |
| Acquirer | Share of MDR, terminal rental, value-added services |
| Scheme Manager | Assessment fee, licence fees, cross-border fee uplifts |
| Processor | Per-transaction fee, platform SaaS subscriptions |
| PSP/Aggregator | Blended rate to merchants, onboarding fees, FX spread |
| Clearing House | Clearing fee per tx, membership dues |
| Fintech Wallet | Float on wallet balance, merchant service fees, premium subscriptions |
Bottlenecks and Challenges¶
- Inflation: Triple-digit CPI erodes fixed fees, complicates credit scoring, and mandates frequent price recalibration.
- Policy Volatility: Rapid issuance of BCRA communications (e.g., Com. “A” 7769) forces constant system updates, deterring foreign investment.
- Infrastructure Gaps: 4G coverage hits only 66 % in rural Patagonia and NEA, limiting QR adoption among agribusiness SMEs.
- Informality: Cash still ~36 % of retail spend; shadow economy undermines electronic trail.
- Interoperability Hiccups: While Transferencias 3.0 covers QR push payments, pull payments and loyalty integrations remain fragmented.
- Security Threats: Card-not-present fraud rate at 0.13 % of value—double the LATAM average—driving up acquirer chargebacks and scheme fines.
- Funding Constraints: Rising local interest rates (>110 % annual) squeeze fintech runway; VC funding fell 28 % YoY in 2024.
- Market Concentration: Processing still effectively duopolistic (Prisma + Fiserv); merchant switching costs high.
Value Chain Relationships and Business Models¶
End-to-End Flow¶
- A consumer uses a Mercado Pago wallet to scan a Modo-generated interoperable QR at a bookstore.
- The merchant’s PSP (Modo) transmits the ISO 20022 message to COELSA via the Transferencias 3.0 hub.
- The payer’s issuing bank (Banco Galicia) validates balance, signs off, and instantaneously debits the CVU.
- COELSA nets positions in near-real-time and instructs the BCRA’s MEP to settle in central-bank money.
- The merchant’s acquiring bank (Banco Santander) receives the credit and releases funds to the merchant account (T+0).
Friction Points in This Transaction¶
• Token mismatch between wallet providers may create latency (≥1 s) if fallback to alias CBU required.
• Liquidity management for the merchant’s bank at the MEP window; intraday overdraft costs.
• Dispute resolution lacks standardised chargeback codes for A2A, unlike card schemes.
Economic Split (Illustrative AR$ 1 000 QR Payment)¶
| Actor | Gross Amount | Net After Fees |
|---|---|---|
| Merchant | 1 000.0 | 992.0 (0.8 % MDR for QR) |
| PSP/Acquirer | – | 3.0 |
| Issuer | – | 2.5 (interchange equivalent) |
| Scheme / Transfer 3.0 | – | 1.5 |
| Clearing House | – | 0.7 |
| Net to Consumer Bank | – | (Cost) liquidity debit |
Conclusion¶
Argentina’s payment value chain is a fast-evolving, multi-layered construct. A decisive regulatory push and fintech agility have propelled electronic payments to new highs, yet enduring macro-economic turbulence, infrastructure disparities, and interoperability puzzles continue to pose hurdles. The industry’s future resilience hinges on:
• Deepening real-time, universal interoperability—including pull-payment and tokenised credentials.
• Scaling fraud-mitigation AI and shared negative databases to counter rising CNP fraud.
• Prioritising rural connectivity initiatives (e.g., satellite POS, offline QR) to bridge adoption gaps.
• Ensuring regulatory stability through longer consultation periods and sandbox pilots.
Further research should quantify the socio-economic impact of digital payments on Argentina’s informal sector and evaluate the cost-benefit of CBDC deployment as an additional settlement layer.
References¶
- Banco Central de la República Argentina. Sistemas de Pago. https://www.bcra.gob.ar/SistemasDePago/Sistemas-de-pago.asp
- Banco Central de la República Argentina. Medios de pago electrónico. https://www.bcra.gob.ar/PublicacionesEstadisticas/Medios_pago_electronico.asp
- COELSA. Cámaras Electrónicas de Compensación. https://www.coelsa.com.ar/
- Latam Fintech Hub. “Paytechs, los nuevos eslabones clave de la cadena de valor…” https://latamfintech.io/blog/paytechs-los-nuevos-eslabones-clave-de-la-cadena-de-valor-en-los-pagos-digitales/
- Infobae. “Fuerte cambio en los medios de pago: las transferencias inmediatas…” https://www.infobae.com/economia/2024/12/19/fuerte-cambio-en-los-medios-de-pago-las-transferencias-inmediatas-de-dinero-aumentaron-casi-50-en-2024/
- Americas Market Intelligence. “E-commerce en Argentina: estadísticas y datos 2023.” https://americasmi.com/es/blog/e-commerce-argentina-estadisticas/
- rankingslatam. Mercado de Tarjetas de Crédito y Débito en Argentina. https://rankingslatam.com/mercado-tarjetas-credito-debito-argentina-rankings/
- BOLETIN OFICIAL REPUBLICA ARGENTINA. Comunicación BCRA “A” 7769/2023. https://www.boletinoficial.gob.ar/detalleAviso/primera/287697/20230517
- Deloitte. El RIGI como Mecanismo de Promoción de las Cadenas de Valor Productivas. https://www2.deloitte.com/content/dam/Deloitte/ar/Documents/tax/ar-tax-rigi-mecanismo-promocion-cadenas-valor-productivas.pdf
- OECD. “Competencia, Fintechs y Open Banking en Argentina.” https://www.oecd.org/daf/competition/Session%20I%20Competition,%20Fintechs%20and%20Open%20Banking%20in%20Argentina.pdf
- Visa Press Release. “Visa establece operaciones en Argentina.” https://visa.la/about-visa/newsroom/press-releases/nr-la-ar-20231121.html
- Mordor Intelligence. Argentina Payments Market Report. https://www.mordorintelligence.com/es/industry-reports/argentina-payments-market
- Getnet Argentina. Actividades Prohibidas. https://www.getnet.com.ar/storage/documentos/principales/getnet-actividades-prohibidas-uso.pdf
- Marval, O'Farrell & Mairal. “Nuevas medidas de interoperabilidad para pagos con QR.” https://www.marval.com/publicacion/se-amplia-el-universo-de-proveedores-de-servicios-de-pagos-regulados-y-se-establecen-nuevas-medidas-de-interoperabilidad-para-pagos-con-qr-14832
- BCRA. Informe de Inclusión Financiera. https://www.bcra.gob.ar/Pdfs/Comunicaciones/Informe%20de%20Inclusion%20Financiera.pdf
(Only sources explicitly cited in the report are listed; all URLs have been scrubbed to exclude vertexaisearch.cloud.google.com domains.)