Argentina’s fintech ecosystem continues to grow rapidly, both in terms of new players and the operations of those that already have years of experience under their belts.
During August, the number of users of electronic money in Argentina grew for the sixth month in a row, reaching some 43.3mn, up by 220,000 (+0.5%) compared with July and rising 14.2% compared with August 2020, according to a report by Red Link, a payment information processor owned by a group of Argentine banks.
This growth is expected to continue unabated, particularly since the Argentine central bank (BCRA) recently ruled that interoperable QR codes should be implemented by November 29 this year, as part of its Transferencias 3.0 initiative.
This system basically makes electronic wallets and bank accounts interoperable, regardless of the app used, meaning that payments can be made to businesses easily by simply using a QR code on a mobile phone.
With this initiative, the BCRA aims to pave the way for 1.5bn more digital transactions by 2022, leading digital payments to reach 15% of the total made, or a volume of some 4bn digital transactions per year, which means there is a burgeoning market to tap for both new and more experienced companies.
Here, BNamericas take a look at some of the latest developments in Argentina’s fast-expanding fintech ecosystem.
Earlier this month, PagoNxt, the Fintech that brings together the Santander group’s payments businesses, launched Superdigital, a platform that is intended to promote the use of electronic money among people who still use cash.
The company plans to replicate its experience in Brazil. There, Grupo Santander developed Superdigital after acquiring ContaSuper in 2016. In that country, the payment platform now has around 1.9mn customers.
Superdigital has also announced that it plans to expand its operations to the rest of Latin America too.
Banco Galicia’s fintech, Naranja X is expanding and has announced that it will add 600 staff over the next few months in areas to develop new digital financial products and services, despite the fact that it has already added some 260 new people this year.
Naranja X has close to 5mn users and 9.5mn credit and prepaid cards issued. It also has some 2.18mn active insurance policies.
This year, the company plans to set aside 160bn pesos (US$1.61bn) for consumer financing.
Payments fintech Moni is one of the first to announce the implementation of the interoperable QR system in September, as part of BCRA’s Transferencias 3.0 program.
It has also added a service that can immediately grant loans to make purchases for users who lack the available funds.
Moni has already exceeded 1.5mn transactions in 2021 and has granted consumer loans for more than US$260mn, it claims.