Business

Credit card spending grew in Argentina in July, boosted by Hot Sale

Year-on-year growth reached 63.9%, continuing the acceleration seen in previous months and well above inflation, reported El Cronista

Online payment. Man holding a credit card and using smart phone for online shopping. Photo: Shutterstock
  • Argentine Hot Sale pushed up the transactions;
  • Figures come from the Argentine Central Bank.

Credit card spending in Argentina grew in July, driven by discount plans and more accessible financial costs, according to a survey by First Capital Group based on data from the Argentine Central Bank, reports El Cronista.

Operations in pesos through credit cards registered a balance of ARS 682 billion, which means a 6.3% rise compared to the end of the previous month.

READ ALSO: Oyo partners up with Creditas to offer credit lines for Brazilian hoteliers during the pandemic

On the other hand, year-on-year growth reached 63.9%, continuing the acceleration compared to the previous month and well above inflation for the period, as First Capital Group indicated.

“In the last three months the increase has been 23.1%. As new activities are incorporated, we observe a growth in these portfolios, which have characteristics of comfort and flexibility plus relatively more accessible financial costs, ”explained Guillermo Barbero, partner of the firm.

Barbero analyzed that “in addition, in July, the effect of the success of the Hot Sale was added, with discounts and payment promotions in up to 18 installments with a credit card for online purchases.”

READ ALSO: Solfácil, a Brazilian fintech focused on solar power projects, raises $4 million and wants to serve corporate clients

The operations with credit cards in dollars registered a strong rise in relation to the previous month: 37.5%, however the year-on-year fall reaches 67.6%. In the last three months, the consumption with credit cards in dollars accumulated an increase of 89%. “Travel deals abroad during the Hot Sale and limited reopening of new activities may help explain it”, concluded Barbero.