According to Payway, the use of installment plans to finance credit card spending has increased due to lower rates and promotions from issuers. Compared to the previous year, payments made in a single lump sum decreased from 58.6% to 55% in December. This change reflects the trend towards the digitalization of spending by Argentines, at the expense of cash. In the last quarter of 2024, there was a 7% decrease in the use of cards for purchases, a 15% reduction in cash withdrawals at stores, and a 4.2% decline in ATM withdrawals. On the other hand, transactions made through QR codes experienced a year-on-year increase of over 268%.
Payway indicated that credit cards accounted for 61.2% of card transactions made during the past year. This is attributed to the impact of devaluation, inflation, and the subsequent reduction in rates with the emergence of promotions and more extended installment plans. The company reported that the share of credit cards continues to rise due to extended financing plans. These data coincide with the Retail Payments Report from the Central Bank of the Argentine Republic (BCRA), which indicated a 23% increase in credit transactions in December 2024 compared to the same month in 2023, and a 7.7% decrease in the use of debit.
Emiliano Porciani, Chief Business Officer of Payway, mentioned that the year 2024 marked a significant advance in the digital transformation of payments in Argentina, thanks to greater interoperability in the ecosystem, reduced tax burdens, the implementation of "Request the POS," and the promotion of new use cases such as contactless payments and NFC devices in public transportation, in addition to tips. Porciani expressed optimism regarding bimonetarism and anticipated opportunities for 2025.
