Debit, Credit, QR or Cash Card: Which is Better

in March, Mercado Pago’s QR payment function is barely five years old in Argentina, With the appearance of its CEO, Marcos Galperin, Unicorn fires up revolution that grows without stopping And it has received an additional boost in the years of segregation.

Since then, many competitors, both fintech and banking, have joined the “movement” of digital wallets. Not only this: the Central Bank along with the main players designed- Transfers 4.0, an interoperable payment system From which user can pay from any wallet regardless of whether the business has another QR code provider or not.

QR code: where is it in the ranking of means of payment

According to the Central Bank, Currently five times more operations are performed on QR, 253,000 during the first half of JanuaryThat’s compared to about 47,000 in the same period last year.

however, within the system pay with transfer (which also includes credit invoices and electronic checks), He QR already represents one operation out of four, It is counting only interoperable systems, that is, when a person makes a payment with the same application as the provider of the merchant code.

According to a study prepared by Fiserv, Argentina has payment preferences,

• Wallet/QR: 34%
• Debit card: 34%
• Credit card: 12%
• Cash: 14%
• Other: 7%

,Virtual Wallet and QR Code considered as one Consumer facing and strengthening their link through various mediums, Although they use cards,, cash loses importance in the ranking of favourites, but it remains as ever”, details the report.

In this sense, the report highlights that with the payment Wallets and QR grow (11 points, from 23%), while those of debit and cash decreased,

With regard to projection, however the intention to use cash falls, a higher percentage is observed across all means of payment. In the case of virtual wallet, Eight out of 10 people declare that they will continue to use“, highlights the document, and details how cell phones are most commonly used as a means of payment.

QR code: where is it in the ranking of means of payment

while choosing Electronic means of payment highlight user security, convenience, promotions and discounts, These factors compel more and more people to adopt them.

,we are enough in argentina Towards Digitization of TransactionsWith a wider range of options: QR, what the Central Bank calls ‘payments with transfers’, has grown enormously”, he confirms. iProUP George Larravide, specialist in means of payment.

And he adds: “According to the BCRA data, Credit card transactions are more or less constant. instead, Shows exponential growth with QR payments or digital wallets”.

the thing is that, There are many advantages of this mode., Larawed breaks them down as follows:

• ,No need to visit ATM again and againBecause cash is less and less accessible due to high inflation”
• ,Rest, simple operation, Today in Argentina there are many apps that are safe and easy to use.”
• , Publicity: Greater traction with discounts”

On this last point, Laraide highlights “Banco Province DNI Account and Method “Almost all wallets If you pay with QR, they geolocate you to show you discounts on a map“, express.

“It’s one of Drivers who collect the most digital payments. They also compete with cash, There are shops that offer discounts if you pay in cash, but in others they offer even higher discounts if the transaction is electronic,” he stressed.

In short, says Laraide, “It is suitable for all: User, Merchant and State, because the operation is empty, It’s not a fad, it’s here to stay, and it’s spreading more and more.”

Payment with QR: what points can be improved?

Gustavo Fazio, CBO Merchants of orange Xhighlights iProUP He “Transferencias 3.0 Giving System leaps and bounds since its implementationHelps promote interoperability To ensure immediate transition to the financial system and to the industry as a whole with transparency and competitiveness”.

It ensures thatfor greater inclusion We must continue to invest in technological solutionsTo adapt to new scenarios and needs”.

,one has to Continue to drive the adoption of new approaches To continue to improve the experience at the point of sale. some examples are Transfers 3.0 and Open BankingRising trend in global financial market Which we hope will also reach Argentina”, he concluded.

Mariano Bioca, director of the Argentine Fintech Chamber, celebrates transfers 3.0 is working fine, although he cautions: “There are aspects that are being improved and this occupies a large part of the agenda.” “The Chamber is actively working as it has issues to follow operational and functional for fraudWhat do you want joint work between the companies and the BCRA”, he explains.

Of these key items on the agenda, the manager comments that “SAnd today you join Transferencias 3.0you have to do a kind approval with each acceptor,

,now it’s working in something that will speed up the system a lot And the ability to add people: He Acts as a single integration ‘plug in’, This will streamline the way acceptors and wallets connect to the system,” commented Bioca.

Respondents confirm this One point to highlight is the synergy between banks, fintechs and BCRA to continue the development of Transferencia 3.0. According to Bioca, “There will always be areas in which competition arises, but it is also becoming increasingly clear what are the issues on which we can work together.”

“For example: what is better tackle fraud together, As the sector grows and raise the ‘cake’It is clear that there are places to do much more and others in which there is a commercial competition to look at how to add more value to the user”, he explained.

it is also necessary that The well-oiled link between the private and public sectors, “You can always improve a conversation, but Transfers 3.0 A good associate example to reduce the use of cash isFazio says.

The director assured that “Relationship with BCRA and industry players it’s been fluent, We have new payment system developed, something that is necessary to integrate and adopt the norms. This collaborative path is still on.”

With regard to the link with the Central in recent years market pay maintain that “many of the measures taken since the beginning of 2020 are of concern to us, as they hinder growth and discourage financial inclusion. We believe that regulatory framework should guarantee Clear rules, competition and drive for growth of technology and innovation.

“For digital payments to grow and gain ground over cash, It is very important to measure the orderliness, simplification and harmonization of various taxes, National and Provincial. It’s a correlation in inclusion purpose”, they conclude from Unicorn.