Argentina Digital Wallet Market Forecasts from 2023 to 2028

The Argentina digital wallet market is predicted to grow at a CAGR of 25.84% to increase from US$2.592 billion in 2021 to US$12.955 billion by 2028.

The rising consumption of online services and the growing penetration of the internet driven by the growing number of smartphone users are facilitating the expansion of the digital wallet market in Argentina. In addition, the lockdown imposed during the pandemic substantially increased online payments and transactions due to which the Argentina digital wallet experienced a surge in its demand. Consequently, many companies are innovating their digital wallet technology and products to capture larger market shares which will lead to the development of digital wallet consumption across different provinces of Argentina.

The favorable initiatives taken by Argentina's government to promote online payment services will further provide an opportunity for the growth of Argentina's digital wallet market. For instance, the Argentina Government has set domestic standards for QR transactions to enhance online payments through smartphones in the country. Further, the Central Bank of Argentina laid down several regulations to monitor digital wallets by asking them to connect payment processes with bank accounts in 2022. This initiative by the Argentina government will assist in standardizing the digital wallet functioning in Argentina by encouraging customers to easily use virtual wallets. According to Finserv, a company involved in payment transaction provision services, approximately 34% of people in Argentina opt to use digital wallets and QRs for payment transactions. Therefore, the rise in digital wallet consumption and the simultaneous implementation of regulations by the government will aid to facilitate the smooth functioning of digital wallet applications.

In addition, the launches of new digital payment platforms in the country are increasing the consumption of digital wallets across the nation. For example, a financial technology company in Argentina, Ohana introduced a new digital wallet product to enable customers to make daily payments of GST in May 2020.

The massive expansion of the e-commerce sector is a significant market driver propelling the expansion of Argentina's digital wallet market.

The availability of buy now pay later schemes and discount offers on availing online payment options are promoting the increased use of digital wallets to purchase products and services through virtual retail sectors. The Cámara Argentina de Comercio Electronico reported that the e-commerce sales in Argentina for 2022 multiplied by approximately 187% to reach US$2, 846, 000 million pesos from its previous year's value of US$1, 520, 000 million pesos. In addition, it also revealed that weekly purchases increased from 39% in 2021 to 43% in 2022 indicating that online purchases are becoming a regular shopping style among a large portion of consumers. Consequently, the growth in online purchasing activities will boost the use of digital wallets to facilitate such purchases.

PAYMENT OUTLOOK ARGENTINA

The payment outlook in Argentina consists of payment solutions, bank account holders, electronic transfer trends, and transfer systems. A digital wallet offers a range of features and services that make it an attractive option for people looking to transfer money. For example, the platform allows users to link their accounts to their debit or credit cards, making it easy to add funds to their wallets. It also offers a variety of payment options, including QR code scanning, online transfers, and in-store payments, which provide users with flexibility and choice. The growing internet penetration in Argentina and rules & regulation laid by the government related to QR codes have provided a positive outlook to the country’s mode of payment. Furthermore, the growing smartphone penetration is also acting as an additional driving factor, boosting the usage of electronic means of payment in Argentina, thereby propelling the overall digital wallet market growth.

By application, the Argentina digital wallet market is segmented into money transfer, recharge, food ordering, movie booking, and others. Digital wallet is also a secure and reliable platform for money transfer as it uses encryption and other security measures to protect users' personal and financial information, ensuring that transactions are safe and secure. This level of security is important for consumers who may be hesitant to use digital payment platforms due to concerns about fraud and identity theft. For instance, Prisma Medios de Pago, a leading payment processor in the country, partnered with Argentina Digital Wallet to offer customers a new digital wallet feature. This integration allows users to manage their payments and transfer money using the Prisma mobile app. Further, in 2021, Banco de la Nación Argentina, one of the country's largest banks, partnered with a company to offer customers a new digital payment solution. The platform, called "PIM", allows users to transfer money among other applications using their smartphones. Customers of Banco de la Nación Argentina can link their accounts to the platform and manage their payments using the bank's mobile app.

Segmentation:

By Device

• PC/Laptops
• Smartphones

By Application

• Money Transfer
• Recharge
• Movie Booking
• Food Ordering
• Others

By Province

• Buenos Aires Province
• Chubut
• Santa Cruz
• Tierra del Fuego
• Others