Argentina’s digital wallet market was valued at US$2.233 billion in 2020.
The country has been witnessing a rapid rise in the number of smartphone users and the growing internet penetration in the internet country. As such, digital wallets are gaining popularity among Argentines, driving the digital wallet market growth in the country. The recent regulatory changes regarding QR codes in Argentina will further boost the market growth of digital wallets in the country during the next five years. The government in Argentina is trying to drive innovation in mobile payments in the country by setting out a local standard for QR payments. The growing e-commerce industry in the country is also a significant driver of the Argentine digital wallet market. According to the Cámara Argentina de Comercio Electronico (CACE), Argentina's e-commerce sales volume increased by 56% in the first half of 2019 compared to the same period in 2018, with total sales exceeding the US $2.5 billion. According to the Cámara Argentina de Comercio Electronico (CACE), the e-commerce sales volume for Argentina surged by 56 per cent in the first half of 2019 compared to the same period in 2019, with total sales amounting to more than US$2.5 billion.
An increasing number of digital wallet platforms being launched in Argentina will also propel the country’s digital wallet market growth during the forecast period. Recently, in May 2020, Ohana, an Argentina-based Fintech firm, launched its digital wallet, which will allow users to pay for daily goods and services and taxes. The company’s digital wallet can also be used to send money to friends and family members, with an option to perform transactions using QR codes at no extra cost.
Argentina’s D digital wallet market has been segmented based on the device and application. The market has been segmented as PCs, /laptops, and smartphones by the device. By application, the Argentine digital wallet market has been classified into money transfer, recharge, movie booking, food ordering, and others.
Covid-19 Impact On The Argentina Digital Wallet Market
The Covid-19 Pandemic has boosted the market growth for the digital wallet in Argentina. Due to pandemics and lockdown, Argentines cannot go out, make withdrawals, and make payments at a nearby payment juncture as they used to. As per the Financial Times, Ualá, a digital bill payments service, which works with Western Union, has seen a 300% increase in transactions during the disease outbreak. Uala Founder told the growth thought to achieve over the years they had achieved those over the weeks time. According to the World Bank Data, 49% of Argentines have a bank account with debit cards, making digital payment a swift deal. During the time of the pandemic. People adopted for digital form payment to avoid coming in contact with infection; even the innovation and technologies and startups also invested in the digital wallet services to enter into the growth prospects, which had driven the market growth for the digital wallet in Argentina over the forecasted period.
Market Strategies and Development
On May 2020, Ohana disclosed the launch of its digital wallet that allows users to pay for regular daily goods and services and taxes. The electronic wallet provided by the company can also be used to transfer funds to family members and friends. There is a free option to carry out transactions using QR codes.
On January 2022, Strike, an electronic wallet and mobile payment company that specializes in Bitcoin-related services, has recently launched in Argentina. objectives for entering the country is that the company's goal is to improve the country's financial experience
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