Argentina’s payment system is influenced by both local economic conditions and global trends. Economic uncertainty has historically driven a reliance on cash, but the country’s seen several major shifts in recent years. Ecommerce transaction volume reached $33 billion in 2024 and is projected to reach $50 billion in 2027. This indicates that the country is eagerly moving toward more digital transactions.

However, these changes also present challenges. The volatility of the Argentine peso (ARS) has necessitated newer solutions and has contributed to the rise of alternative payment methods, including local digital wallets like Mercado Pago and Ualá. These popular payment methods have helped bridge the gap between traditional banking systems and the changing needs of younger, more urban populations. The country’s strong ties to trade partners such as Brazil, China, and the US reinforce the importance of simple cross-border transactions, which have elevated Argentina’s position in the global payment space.

In this guide, we’ll examine the forces that shape Argentinian payments, along with what you should know about entering this market, including:

• Working strategically with local payment methods
  
• Understanding currency fluctuations and regulations
  
• Prioritizing security and fraud prevention
  

The state of the market

The Banco Central de la República Argentina (BCRA), the country’s central bank, plays a pivotal role in determining monetary policy and regulating the country’s financial institutions. The Comisión Nacional de Valores oversees the securities market.

While cash is commonly used across demographic groups, electronic transactions are on the rise. For example, Ualá offers a card linked to its mobile app to combine the functionality of a traditional bank card with the flexibility of a digital wallet. As of 2024, Ualá has served more than 9 million customers since its 2017 launch.

Credit cards are also widely used in Argentina. This broad acceptance is bolstered by the country’s high internet penetration rate, which reached over 89% in 2023 and is projected to exceed 95% in 2025. Greater internet access has also supported the growth of ecommerce, and Argentinians very frequently use credit cards to pay for online purchases.

Argentinians also have a growing affinity for contactless payments, particularly in the cities, where the technology infrastructure supports those advancements. Many Argentinians are also taking advantage of contactless payments via digital wallets on their smartphones.

Payment methods

While Argentina has traditionally been reliant on cash for many transactions, technology has begun reshaping the country’s payments. Here’s a closer look at the most popular payment methods in Argentina.

Current usage

Mobile banking and online transactions are on the rise. In 2023, digital wallets accounted for more than 100 million transactions per month. Digital wallets like Mercado Pago have also made strong inroads by offering users a simple way to pay bills, replenish credit, and even make investments.

Credit card installment payments (known as “cuotas”) are also popular, with about 77% of households using them in 2019. While Argentinians are increasingly drawn to the convenience and traceability of electronic transactions, cash use remains strong, with 27% of point-of-sale transactions made with cash in 2024. Many residents prefer cash due to distrust in the banking system, which stems from historic economic crises and privacy concerns. Customers can often feel more in control when they use physical currency.

Argentina’s government and regulatory bodies have moved to modernize the country’s payments infrastructure. The BCRA has promoted digital banking solutions to reach unbanked and underbanked populations. Regulators have also introduced limits on cash withdrawals and incentives for electronic payments to encourage a shift away from paper money. But inflation and other economic forces have resulted in tight controls on foreign currency. This drives a reliance on tangible assets, including cash.

Popular B2C payment methods in Argentina

• Cash
  
• Credit cards
  
• Debit cards
  
• Digital wallets (e.g., Mercado Pago)
  

Popular B2B payment methods in Argentina

• Credit cards
  
• Digital wallets
  
• Bank transfers
  

Emerging trends

In 2027, digital wallets are projected to gain a larger market share for ecommerce than credit cards—59% for wallets, compared to 25% for credit cards.

Mercado Pago, an offshoot of the ecommerce giant Mercado Libre, is one of the most recognized mobile payments platforms in Argentina. It’s more than just a digital wallet: it has developed into an all-encompassing financial tool, with options for investments, bill payments, and mobile replenishments. Ualá is another major player. These platforms, built with local preferences and spending habits in mind, have seen strong adoption.

Ease and friction of entry

Entering Argentina’s payment market presents several challenges. Here’s a closer look at some of them.

Taxes

Customers and businesses are impacted by value-added tax (VAT). In Argentina, the standard VAT rate is 21.0%, but it can be 10.5% or 27.0%, depending on the good or service. While customers pay this tax directly on their purchases, businesses must collect and remit it to the government. Proper documentation and timely remittance are important, as inaccuracies can lead to penalties.

Chargebacks and disputes

The BCRA sets the rules and regulations regarding chargebacks and disputes. There’s a set window of time, which is often shorter than in other countries, for customers to flag unauthorized transactions. Once a transaction is flagged, the financial institution must investigate and resolve the issue. These investigations tend to favor the customer unless the business can provide conclusive evidence that the transaction was valid.

The country also has strong consumer protection laws that emphasize the rights of customers in disputes. The General Directorate for Consumer Protection oversees disputes and ensures that customers are treated fairly. Businesses in Argentina often work closely with payment processors and banks to keep detailed transaction records in the event of chargebacks.

International payments

Argentina’s payment market has unique characteristics, but it overlaps with global markets through its trade partnerships, financial technology, and regulatory efforts. Here’s what to know about international payments in Argentina.

• Currency conversion
  The BCRA oversees currency conversion and sets the official exchange rate. This can create some distance between the official rate and the “true” exchange rate, known as the “blue dollar” rate. Finding ways to circumvent the official exchange rate is common and legal. Tourists often wire themselves money to take advantage of the blue dollar rate, which is often half the official rate. This two-tiered system can create challenges for businesses that conduct transactions in foreign currencies. Many Argentinians monitor exchange rates closely. Online platforms, apps, and newspapers frequently provide updates on both the official and blue dollar rates. The difference between these rates also incentivizes the practice of holding or transacting in US dollars or stablecoins pegged to the US dollar for stability.

• Cross-border transactions
  Businesses and individuals who engage in international payments must understand Argentina’s foreign exchange regulations, especially given the rates of hyperinflation. The BCRA sets guidelines for access to the foreign exchange market in line with international standards.

• Role of foreign exchange controls
  Argentina’s economic difficulties have had a profound influence on its regulations and controls. Regulators have implemented foreign exchange controls to stabilize the ARS, which can create unique challenges for businesses that operate internationally.

Security and privacy

Argentina aims to nurture businesses while prioritizing consumer protection. Here’s a look at how the country handles security and privacy matters.

• Data protection laws
  The Personal Data Protection Law governs the collection, use, and sharing of personal data. Introduced in 2000, this regulation focuses on the rights of customers, in keeping with EU standards. The law mandates that organizations, including payment processors, seek explicit consent before they collect personal data and gives individuals the right to access, correct, and delete their data.

• Consumer rights and protections
  The General Directorate for Consumer Protection oversees customers’ rights in financial transactions. This body requires financial entities to be transparent, uphold customers’ rights, and offer mechanisms to handle disputes.

• Regulatory considerations
  The BCRA has been proactive in regulating mobile payments. While it encourages digital transactions to boost the economy, it has also established guidelines to help related platforms protect their data and implement other security measures.

• Digital and mobile payments
  Argentina’s move toward digital payments is evident with the expansion of mobile and online payment solutions. These platforms are subject to the same rigorous standards set by the BCRA to protect users’ data and money.

Key success factors

While Argentina offers a wealth of opportunities, its economic conditions, regulatory changes, and market-specific trends require close attention. Stakeholders should stay informed and agile to operate effectively in the Argentinian market. Here are some major factors to consider.

• Possible macroeconomic shifts
  One of the primary challenges in Argentina’s economy is the country’s history of inflation. Annual inflation exceeded 100% in February 2023, making it one of the highest rates in the world at the time. These conditions can complicate payment processes, particularly for international transactions, and make pricing strategies difficult.

• Currency fluctuations
  Given the fluctuations of the ARS, price adjustments and recalibrations are often necessary. Businesses should have systems in place that enable real-time currency conversion to provide customers with accurate pricing and prevent losses from rapid devaluations.

• Argentina’s major trade partners
  Argentina collaborates with its neighbors on financial initiatives such as the Latin American Integrated Market, which unifies the stock markets of member countries. Argentina’s trading partners also have a direct influence on its payment market through cross-border transactions, related currency conversions, and trade. Brazil is Argentina’s primary trading partner, and both countries are part of the Southern Common Market (or Mercosur), a bloc that aims to simplify trade and cross-border payments among its members.

• Security and fraud prevention
  Electronic payments, especially through digital wallets, are expanding in Argentina, which makes cybersecurity a chief concern. By integrating advanced encryption and authentication processes, businesses can reassure customers and reduce the potential for disputes.

Key takeaways

The Argentinian market presents numerous opportunities. Here are our top tips for working through Argentina’s payment system.

Take advantage of local payment methods

• Offer installment payments
  In Argentina, credit card installment payments (known as “cuotas”) are common. By offering a range of installment options, businesses can accommodate local spending habits and even increase sales.

• Consider integrating with popular local payment methods
  Payment methods like Mercado Pago and Ualá are very popular. Integrating with these options offers familiarity for customers and can also expedite checkout.

• Facilitate cross-border transactions
  As an export-driven economy, Argentina has strong trade ties with Brazil, China, and the US. Businesses that work with international customers should invest in payment gateways that can easily accommodate multicurrency transactions, while keeping compliance and taxes in mind.

Know the complexities of the currency and regulatory environment

• Stay up-to-date on compliance
  Argentine regulations change frequently, particularly with respect to foreign exchange and capital controls. This can pose challenges for businesses involved in cross-border transactions. Businesses need to stay up-to-date with these regulations to operate smoothly and reduce the risk of compliance-related disruptions.

• Be aware that access to international payment gateways might be limited
  Due to Argentina’s currency controls and economic policies, many global payment processors have limited operations in the country. These restrictions can stifle businesses, especially ecommerce platforms, that want to expand their global footprints. They also limit customers’ access to international products and services as certain payment methods aren’t universally accepted.

• Know the local credit card market
  Argentina’s credit card market is unique. Many online shopping transactions are facilitated through installment payments. While this allows customers to manage their finances when inflation is high, it introduces complications for businesses regarding cash flow management and revenue predictions.

Prioritize security and fraud prevention

• Ensure mobile payments are secure
  The rise of digital payment methods in the country necessitates strong security protocols. While the growth of Mercado Pago or the BCRA’s own national digital payment system indicates a shift, it also drives the need for advanced cybersecurity, fraud detection methods, and the digital infrastructure to support these measures.

• Learn the role of regulators
  Argentina’s regulators have been setting guidelines to protect customers. In 2022, the BCRA established mandatory security guidelines for companies that offer mobile payments services.

• Combating fraud and money laundering
  Argentina’s Financial Intelligence Unit sets standards to combat fraud, money laundering, and the financing of terrorism. This body requires financial institutions, including banks and payment processors, to implement risk management strategies and report suspicious transactions.