The use of prepaid cards in Argentina has experienced a notable increase, with young consumers leading this trend, according to a report by Global Processing. There has been a significant rise in contactless payments and the use of virtual cards. The geographical distribution of transactions is mainly concentrated in the urban regions of the country, with a low participation of international transactions.
Patricia Furlong, CEO and President of Global Processing, pointed out that the growth of prepaid card transactions in the last year reflects the consolidation of this payment method in Argentina. She also highlighted that digitalization is marking a turning point in the fintech industry.
During the second half of 2024, 45% of transactions were made through contactless payment, with 95% of the volume operated with prepaid cards corresponding to national transactions, mainly in supermarkets, fuel, and gastronomy as the main consumption sectors. Virtual prepaid cards experienced a 75% increase compared to the previous year.
Among virtual prepaid cards, usage was led by categories such as gaming and entertainment (27%), followed by professional services (14%) and TV and streaming (14%). Notably, young people were the main drivers in the consumption of these cards, conducting 60% of transactions through automatic debits and purchases in e-commerce.
In general terms, prepaid cards recorded a growth of 39% in the number of transactions and 234% in the volume operated compared to the previous year.
