Argentina Loyalty Programs Market Intelligence and Future Growth Dynamics - 50+ KPIs on Loyalty Programs Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2025 Update

The loyalty market in Argentina is expected to grow by 16.7% on annual basis to reach US$729.2 million in 2025.

In value terms, the loyalty market in the country has recorded a CAGR of 19.2% during 2020-2024. The loyalty market in the country will continue to grow over the forecast period and is expected to record a CAGR of 14.1% during 2025-2029. Loyalty market in this region is expected to increase from US$624.6 million in 2024 to reach US$1.23 billion by 2029.

This report provides a detailed data-centric analysis of the loyalty market opportunities and risks across a range of end-use sectors and market segments in Argentina. With over 50 KPIs at the country level, this report provides a comprehensive understanding of loyalty market dynamics, market size and forecast, and market share statistics.

The publisher’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

Key Insights

The loyalty programs landscape in Argentina is dynamic, with businesses adapting to technological advancements, collaboration opportunities, sustainability imperatives, and the e-commerce surge. Argentine businesses are trying to gain competitive advantage by incorporating advanced technologies, creating coalition partnerships, promoting sustainability, and focusing on personalization. Focus is on aligning loyalty strategies with these trends to drive customer retention and long-term growth.

Integration of Advanced Technologies in Loyalty Programs

• Argentine businesses leverage advanced technologies such as artificial intelligence (AI) and data analytics to personalize loyalty programs. For example, Banco Galicia, one of Argentina's leading banks, uses data analytics to customize its "Quiero!" rewards program, offering tailored benefits to cardholders based on their spending patterns.
• The rise of digital payment adoption in Argentina, accelerated by the pandemic, has created abundant consumer data.
• Increasing competition in retail, banking, and e-commerce sectors encourages brands to differentiate by using AI to personalize experiences. The popularity of digital wallets like Mercado Pago, which collects data from millions of users, has pushed brands to adopt data-driven strategies.
• More brands will adopt AI and predictive analytics, refining customer segmentation and improving loyalty programs.
• Advanced analytics will drive more dynamic reward structures, increasing customer satisfaction and retention. Companies that fail to adopt data-driven approaches risk being left behind in a competitive market.

Growth of Coalition Loyalty Programs

• Coalition loyalty programs, where multiple businesses collaborate, are on the rise. Club Personal, operated by Telecom Argentina, partners with various retail brands, allowing customers to earn points through diverse channels and redeem them across multiple categories, such as shopping, entertainment, and travel.
• The success of coalition programs like Club La Nación, which aggregates rewards from different sectors, demonstrates the value of such collaborations.
• Coalition programs will likely expand their partnerships, including with small and medium enterprises (SMEs), to widen their appeal. Consumers will benefit from greater flexibility in rewards, boosting program participation. Companies joining coalitions will strengthen their customer retention strategies while sharing operational costs.

Emphasis on Sustainability in Loyalty Initiatives

• Sustainability-focused loyalty programs are becoming popular. For example, YPF Serviclub, a loyalty program by the state-owned oil company YPF, offers environmentally conscious rewards, such as discounts on eco-friendly products and services.
• A growing awareness of environmental issues among Argentine consumers, particularly younger demographics, pushes businesses to align their programs with sustainable practices.
• The government's sustainability initiatives and green policies have encouraged companies to integrate eco-friendly measures into their business models.
• Loyalty programs emphasizing sustainability will attract environmentally conscious consumers.
• Companies will increasingly incorporate eco-rewards, such as carbon offset credits or green products, into their offerings. Sustainability as a value proposition will differentiate brands in a competitive market.

Expansion of E-commerce and Digital Loyalty Platforms

• The boom in e-commerce has driven the growth of digital loyalty platforms. For example, Mercado Libre, Argentina’s leading e-commerce platform, has integrated loyalty through its "Mercado Puntos" program, offering discounts, free shipping, and streaming service benefits based on purchase volume.
• Increased internet penetration and smartphone usage in Argentina have shifted consumer behavior towards online shopping.
• The convenience of digital wallets like Ualá and seamless payment systems drive e-commerce adoption.
• E-commerce platforms will further enhance loyalty offerings, integrating gamification and instant rewards to boost engagement. Small and medium-sized businesses (SMBs) will join digital loyalty ecosystems to remain competitive. Mobile-first strategies will dominate, with an increased focus on app-based loyalty engagement.

Personalization of Loyalty Programs

• Personalization in loyalty programs has gained prominence. For instance, Aerolineas Plus, the frequent flyer program by Aerolíneas Argentinas, uses customer data to personalize offers such as bonus miles, discounted flights, and tailored vacation packages.
• Advancements in CRM (Customer Relationship Management) systems enable companies to use real-time data to customize rewards and communication.
• Competition in the travel and hospitality industry, including from global players like LATAM Pass, has increased the focus on personalized services. Hyper-personalized loyalty programs will become the norm, with businesses offering real-time rewards based on customer behavior.
• Companies excelling in personalization will achieve higher customer satisfaction and loyalty.

Competitive Landscape and Regulatory Changes in Argentina’s Loyalty Market

The loyalty market in Argentina is highly competitive, with a fragmented structure, but consolidation is expected in the coming years. Key players leverage partnerships and digital innovation to stay ahead, while smaller entrants face market and cost barriers. On the regulatory front, stricter data privacy laws and tax implications add complexity, pushing businesses to innovate while ensuring compliance. Over the next 2-4 years, companies that successfully integrate technology, adapt to regulations and offer transparent, customer-centric loyalty strategies will maintain a competitive edge.

Competitive Intensity in the Loyalty Market

• Retail giants like Cencosud (via the Jumbo Más loyalty program) and Carrefour offer competitive loyalty initiatives to retain customers in a market characterized by price sensitivity.
• Financial institutions such as Banco Galicia and Banco Santander Río focus on offering robust loyalty and reward credit card programs, leveraging cashback and points to differentiate themselves.
• Marketplaces like Mercado Libre have introduced loyalty tiers (e.g., Mercado Puntos), significantly intensifying competition by blending e-commerce and loyalty benefits.

Type of Players and Market Structure

• The fragmented market has numerous players operating across various industries, including retail, banking, airlines, and digital platforms.
• While traditional players dominate, startups and tech-focused companies (e.g., mobile app-based loyalty platforms) are increasing their presence.
• Growing coalition programs like Club La Nación integrate multiple businesses, creating competitive differentiation and driving customer retention.
• High initial investment in technology and data analytics is a barrier for smaller businesses. Entrenched customer loyalty to existing programs of major players poses significant challenges for new entrants.
• Consolidation is likely as smaller players find competing difficult, leading to dominant programs from major players. Collaboration across sectors will intensify, with loyalty partnerships between airlines, retail, and banks becoming more common. Increasing adoption of digital and AI-driven analytics will differentiate competitive offerings.

Recent Regulatory Developments

• Argentina’s Personal Data Protection Law (PDPL), modeled after the EU’s GDPR, enforces strict data collection, storage, and usage standards.
• Loyalty programs relying on customer data for personalization face challenges in complying with these regulations. For instance, programs must secure explicit customer consent before using data for analytics or targeted promotions.
• Rewards and points accrued through loyalty programs may face increased scrutiny from tax authorities, especially for programs tied to financial institutions or high-value rewards.
• Rising compliance costs for companies implementing loyalty programs, especially in maintaining data security and adhering to privacy laws.
• Programs must clearly inform customers about point expiry, redemption processes, and customer rights, increasing business operational complexity. Programs with strong data protection measures could gain customer trust, providing a competitive advantage.
• Enforcement of PDPL is expected to intensify, prompting businesses to adopt robust data governance frameworks. Regulations may favor increased consumer rights, such as the portability of loyalty points across programs, disrupting traditional loyalty structures.
• Governments may further seek to regulate and tax loyalty programs, impacting the financial viability of smaller players.

Scope

This report provides in-depth, data-centric analysis of loyalty programs in Argentina. Below is a summary of key market segments.

Argentina Retail Sector Spend Value Trend Analysis

• Ecommerce Spend
• POS Spend

Argentina Loyalty Spend Market Size and Future Growth Dynamics by Key Performance Indicators

Value Accumulated and Value Redemption Rate of Loyalty programs in Argentina

Argentina Loyalty Spend Market Size and Future Growth Dynamics by Functional Domains

• Loyalty Schemes
• Loyalty Platforms

Argentina Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Program Type

• Points programs
• Tier-based programs
• Mission-driven programs
• Spend-based programs
• Gaming programs
• Free perks programs
• Subscription programs
• Community programs
• Refer a friend program
• Paid programs
• Cashback programs

Argentina Loyalty Spend Market Size and Future Growth Dynamics by Channel

• In-Store
• Online
• Mobile

Argentina Loyalty Schemes Spend Market Size and Future Growth Dynamics by Business Model

• Seller Driven
• Payment Instrument Driven
• Others

Argentina Loyalty Spend Market Size and Future Growth Dynamics by Key Sectors

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Argentina Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Online

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Argentina Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by In-Store

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Argentina Loyalty Spend Market Size and Future Growth Dynamics in Key Sectors by Mobile App

• Retail
• Financial Services
• Healthcare & Wellness
• Restaurants & Food Delivery
• Travel & Hospitality (Cabs, Hotels, Airlines)
• Telecoms
• Media & Entertainment
• Others

Argentina Loyalty Spend Market Size and Future Growth Dynamics by Retail

• Diversified Retailers
• Department Stores
• Specialty Stores
• Clothing, Footwear & Accessories
• Toy & Hobby Shops
• Supermarket and Convenience Store
• Home Merchandise
• Other

Argentina Loyalty Spend Market Size and Future Growth Dynamics by Accessibility

• Card Based Access
• Digital Access

Argentina Loyalty Spend Market Size and Future Growth Dynamics by Consumer Type

• B2C Consumers
• B2B Consumers

Argentina Loyalty Schemes Spend Market Size and Future Growth Dynamics by Membership Type

• Free
• Free + Premium
• Premium

Argentina Loyalty Platform Spend Market Size and Future Growth Dynamics by Software Use Case

• Analytics and AI Driven
• Management Platform

Argentina Loyalty Platform Spend Market Size and Future Growth Dynamics by Vendor/Solution Partner

• In House
• Third Party Vendor

Argentina Loyalty Platform Spend Market Size and Future Growth Dynamics by Deployment

• Cloud
• On-Premise

Argentina Loyalty Spend Market Size and Future Growth Dynamics by Loyalty Platforms

• Software
• Services

Argentina Loyalty Spend Market Size and Future Growth Dynamics by Software Use Case Platforms

• Custom Built Platform
• Off the Shelf Platform

Argentina Loyalty Spend Market Size and Forecast by Consumer Demographics & Behaviour

• By Age Group
• By Income Level
• By Gender

Reasons to buy

• Insights on Strategy & Innovation: Navigate through future direction of the loyalty programs and platforms market by understanding strategic initiatives taken by key players to gain market share and innovation.
• In-depth Understanding of Loyalty Market Dynamics in Argentina: Understand emerging opportunities and future direction of the loyalty programs and platforms market, key drivers, and trends. Benefit from a detailed market segmentation with 50+ KPIs.
• Value and Volume KPIs for Accurate Understanding: Value and volume key performance indicators (KPIs) help in developing an accurate understanding of market dynamics.
• Competitive Landscape: Get a snapshot of competitive landscape with key players and market share in Argentina. Formulate your strategy by gaining insights into the current structure of the market.
• Develop Strategies to Gain Market Share: Create and fine tune your targeting strategy in the loyalty sector, identify growth categories and target specific segments across the value chain; evaluate important trends and risks unique to your market.
• Deeper Understanding of Consumer Behaviour: Increase ROI by understanding how consumer attitudes and behaviours are evolving. Get a detailed view on retail spending dynamics across consumer segments.