In the retail payment system in Argentina, the participation of a bank or a Payment Service Provider (PSP) that provides bank or payment accounts is fundamental, as well as various actors that perform functions such as administration, acceptance, and initiation to ensure that transfers and payments are effectively completed.
In July, bank accounts in pesos nearly doubled those of payment accounts, with 98.4 million CBU provided by banks to the private sector in pesos and 50.6 million CVU provided by PSPs. Larger banks are subject to differential liquidity, capital, and operational complexity requirements due to their systemic importance.
Access to accounts is primarily through banking institutions, which receive funds from depositors and credits from various programs. The number of CBU in pesos from the private sector and CVU has experienced significant growth in the last two years.
In terms of managed balances, banks significantly outperform PSPs, with bank deposits in pesos to the private sector reaching $60 trillion, while PSPs managed $3.1 trillion in July. However, when analyzing entities individually, it is observed that a single PSP has a size comparable to one of the 15 largest banks in Argentina.
According to the International Monetary Fund, it is necessary to modify regulatory frameworks to ensure fairness between traditional banks and FINTECH companies. PSPs must meet registration, security, and reporting requirements to the Central Bank, while banks operate under comprehensive risk-based regulation.
In the retail payment system, it is essential to have a bank or payment account to carry out electronic transfers and payments. Regulation must consider the operational risk of each PSP, systemic risks, and the protection of individuals' funds in times of crisis.
Banks are subject to a comprehensive regulatory framework that aims to ensure the safety of depositors, while PSPs may have a more limited regulatory reach. The number of accounts per adult in Argentina is above one on average, with many holding both CBU and CVU.
The growth of CVU accounts stands out in recent years due to the digitization of payments and the increased familiarity with technology, especially after the Covid-19 pandemic.
