Economy

COVID-19 outcome in payments: Debit purchases in Argentina rose by 32%

While the debit card continued its year-on-year growth, the credit card stunted its growth at a share of 51,06% of the total, according to a Prisma report

Photo: LaPOS website
  • Per volume, debit card use in the first quarter of 2020 was 38,62%, while in Q2 2020 increased to 42,70%;
  • This 2021 first quarter was the winner of debit card spent with 46,06% share.

A COVID-19 pandemic fallout, payments in debit cards rose 32,94% in the first quarter of 2021, compared to the same period last year in Argentina. This is what Prisma‘s new edition of Argentina‘s payments methods index says.

The survey of the Argentine market uses data that the payments firm Prisma has from its service of acquirers that includes Argentina‘s large brands of payment methods, and statistics from the National Institute of Statistics and Censuses of the Argentine Republic, besides Argentina‘s Central Bank.

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Per volume, debit card use in the first quarter of 2020 was 38,62%, while in Q2 2020 increased to 42,70%. This 2021 first quarter was the winner with 46,06%. According to the Prisma report, debit cards earned space from cash (efectivo) and credit cards, which can show a change in Argentine’s purchasing habits. Prepaid cards also grew in this Q1, but to a lesser extent (2,88% of the total). 

Also due to social distancing, Argentines are withdrawing less cash. According to the report’s measurement by volume composition of debit card consumption, there is a plummet of cash withdrawals in Q1 2021 of 48,54% volume. 

While the debit card continued its year-on-year growth, the credit card stunted its growth at a share of 51,06% of the total, according to the report. 

READ ALSO: Argentina was the country where e-commerce grew the most in 2020

Financing plans in the short term and Ahora plans (fixed quotas installments) are the most demanded long-term purchases, with more volume. According to the report, payment plans of up to six installments are the most used by Argentines, with 80% participation. The full report is available here.

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