- Similar to Mercado Pago, Dimo’s goal is to spread the use of a free mobile tool that allows QR code payments and integrates with allied banks;
- 25 banks will offer the service, which will target QR payments and transfers between people via smartphone;
- According to Infobae, while there is no official launch date, several banks consulted by the media outlet aim to roll out it by September.
Play Digital, a new company made up of public and state banks to provide digital financial services in Argentina, is speeding up the process to launch its e-wallet Dimo, short for dinero móvil, in Spanish (mobile money). According to what Infobae learned, while there is no official launch date, several banks consulted by the media outlet aim to roll out it by September.
Targeting QR code payments and transfers between people via smartphone, without requesting the CBU (bank identification number), the digital solution will be available free of charge to all clients of the banks that comprise it.
Dimo is expected to be the traditional banking’s main asset to compete with Mercado Pago, the most widely used solution currently, and with the rest of the fintech universe.
However, Play Digital assures that Dimo will be an open solution, being able to play out a dual role: it will be a competitor of Mercado Pago at the time when the client has to choose with what wallet to pay, but could also be a partner as an acquirer. Play Digital aims to work with both Mercado Libre, Prisma and First Data, the leaders in the acquisition segment.
As Infobae learned, there are already 25 banks that have confirmed their incorporation into the company; among all of them, they account for 79% of the operations with debit and credit cards of the Argentine financial system. The remaining 21% is in the hands of the 3 large state banks: Nación, Provincia de Buenos Aires, and Ciudad.
State banks, on their side, welcome the project based on not needing to hinder their individual projects, while being able to accelerate the digital transformation and update their technological platform at the same pace as the private banks.
At the beginning of the year, the four largest banks in the local financial system launched their own fintech for means of payment, not only to compete with Mercado Libre but also to combat the Argentine habit of using cash for almost all types of operations.
Dimo will be led by Rafael Soto, former General Manager at Nubank in Argentina.
