The two most used fintech wallets in Argentina offer the possibility to capitalize profitably and access money when you need it
non bank wallet they arrived about six years ago and became One of the most practical and simple to use means of payment for QR codes, Now, the best-positioned fintech companies are looking for users Investment options at your fingertips.
The two most used applications are Mercado Pago and Ulathat allows to get Daily returns for each customer’s in-app balance, through a Common Investment Fund (FCI) with immediate protection.
they are kind money market, Invest in the safest financial instruments (fixed terms, sureties, remuneration accounts). Proposal Guaranteed instant liquidity and positive returns,
Ula and Mercado Pago Funds: How They Work
Those who wish to access these tools can do so directly from the app, With no minimum stay time and being able to subscribe and make your money available at any time,
,At Ualá we offer the option of investing in low risk mutual funds through Ualintec Capital, Anyone over the age of 18 can generate returns with a minimum investment of $1,” he revealed iProUP Andres Rodriguez Lederman, vice president of wealth management at Ula.
The company also offers more sophisticated options, such as Argentine Certificate of Deposit (CEDEAR), an instrument issued in Argentina that represents the shares of foreign companies. You can access the numbered value with liquidation with dollars or pesos.
Ula Fund generated Nominal Annual Rate (TNA) of 62.75 in the last month
In November 2022, the company also added the possibility Work with cryptocurrencies, buying and selling bitcoin (BTC) and ether (ETH) for pesos With a minimum investment of $350.
for his part, Mercado Pago offers Mercado Fondos, an FCI managed by BIND group company Industrial Asset Management. is one Simple, low risk and 100% digital option to earn daily returns of the invested balance,
To start investing in the Mercado Fondo: the Minimum capital is $2 and no bank account required like Ula, Unlike fixed term, He money is always available To make purchases, pay for services, withdraw cash or make transfers.
Ualá and Mercado Pago Funds: What Rates Do They Offer?
Both funds offer a rate that, although it does not exceed inflation, allows for example Freeze your salary and pay it until you need to make a purchase (How to pay with QR), While interest continues to accrue on the remaining amount.
From ula Sure last month, for example, Fund generated nominal annual rate (TNA) 62.75%, Thus, if a user decides to invest $200,000 and withdraw it at the end of a month, would have made a profit of approx. $10,500,
Meanwhile, invested the remaining amount Mercado Pago yielded 63.4%So with the same capital the rent for 30 days would have been ,10,570. “In Mercado Pago you can get returns as long as you want: no minimum stay, Stop investing it whenever you want and we don’t charge you anything: You will get Your capital and the total return generated so far“, they say iProUP from unicorn
Mercado Fondo offered a return of 63.4% in the last month
On his part, economist Ignacio E. Carballo highlighted iProUP People who invest in these types of funds should know this The yields they get won’t beat inflation,
,They keep an emergency capital with immediate liquidityUnlike depositing money in a savings account, which does not earn any interest. There is no better or worse option to invest in, but it will depend on the economic reality of each investor and their degree of risk aversion.”
Funds from Ula and Mercado Pago: what to pay attention to
The benefits offered by these devices can The factors affecting the value of the fund vary according to: As the devices making up these FCIs increase or decrease, their reference rates will affect the performance.
However, Carballo points out For this type of FCI to be highly effective, you have to A market crash occurs as happened in 2018 with debt restructuring.
“At that time, Mercado Pago had just launched its fund and had a slight fall. The factors that hurt this type of FCI are those that affect the most secure assetsCarballo says.
Besides, A decision that positively affected returns was adopted by the Central Bank in January, when Pass rate for FCI increased from 75% to 95%, With this pass-through operation, it obtains financing by selling public securities to third parties or banks. Then, within a certain period, it repurchases those titles at a higher price, Which includes the interest rate.
Mercado Pago and Ualá funds can’t beat inflation, but they allow you to put the money to work on a day-to-day basis and use it when you need it.
Thus, the remuneration he received for keeping his money overnight at the center was 68.4% per annum. this decision was targeted Make sure investors want to stay in daily payment instruments and thus avoid the weight that is today money market dollar, which is equivalent to about $3.6 trillion, 53% of the total investment in FCI in Argentina.
Furthermore, this move generated a movement in market rates, so Remuneration accounts in banks and fixed terms, master fund instrument t+0 (immediate redemption), Registered Average growth of 4.5 and 4 percentage pointsrespectively.
“Our money markets experienced a yield increase of 3 percentage points,” explained Lederman. ula, However, a few days later, BCRA reversed the measure and reduced the passive transfer rate to 61.19%. ,Rates stabilized with latest revisionsreturning to a similar location as before the measurement but with a slight increase in rotation,” says Lederman
According to the Argentine Chamber of Mutual Investment Funds (CAFCI), Ula FCI Portfolio is made of:
- Remuneration 46% of bank accounts (Comafi, Supervielle, Province and Services and Transactions)
- 54% for other assets (such as sureties and sureties)
in the matter of market fundsPortfolio includes:
- 65% of remuneration bank accounts
- 26% fixed terms
- 7% bail
- 2% other assets
It should be kept in mind that Tools change based on decisions taken by a team of experts One who manages money.
Funds from Ula and Mercado Pago: How they enable financial inclusion
brought technological acceleration Changing behavior of users who now want to simplify their daily transactionsFrom making payments to recharging the SUBE card. They value being able to invest easily And, as they figure out the ways, participation grows: some start with $100 and then increase that amount significantly. Sources state that:
- 5 million users own the Mercado Pago Fund
- 1.8 million people invest in Ula
- Overall, they represent 91% of the 7.48 million FCI accounts in Argentina.
“We see great inspiration every time we make a new investment tool available. The many people who choose us invest for the first time, so we preferred to make a Simple, clear and few steps experience“, says the Ula executive.
Ula and Mercado Pago account for 90% of the common funds operating in Argentina
Besides, The company made Oola Oola, stage with educational material On economics, finance and investment. It is an online space in which anyone, without using ULA, Access Free Online Courses With certificates, video tutorials, blogposts, downloadable content, talks at schools and a monthly newsletter. All content was approved by the Argentine Chamber of Fintech.
Therefore, Ualá and Mercado Fondo want to bring more people closer to the financial system Guaranteed security and access.