Credit card transactions grow due to the consumption of coverage

The phenomenon of Argentines who save by consuming was noticed in the second quarter of the year (last April, May and June), since the credit card transactions grew by almost 10% (9.52%) vs. same period of 2021.

The data is derived from Prism Index, a market study based on the information that the company has from the products it manages – La Pos terminals, the Banelco network and transactions through the Todo Pago platform – together with Indec statistics and the Central Bank.

In the second quarter of 2022, the year-on-year growth in the number of credit and debit card transactions continues. Credit ones grow 9.52% and debit ones, 23.62%”, explained Julián Ballarino, head of Institutional Relations at Prisma Medios de Pago.

However, consulted by THE NATION, Ignacio Carballo, director of the Fintech Ecosystem at the Argentine Catholic University (UCA), said that the credit card recovery data can generate a misinterpretation because It would not have to do with a reactivation of the economy but with a macro and currency crisis.

“Anything that can be consumed on credit in this super inflationary economy is welcome. There is a population, some consumers who, in addition to having returned to the streets and consuming in this post-normality, find this factor. So what we see is that the debit lasts in 45.39% of the total transactions, that the credit grows to 53.51% and that the prepaid cards continue in free fall after the departure of the Alimentar card, representing 1 ,10%”, he detailed.

On the other hand, he highlighted that, in the use of debit cards, purchases maintain their tendency to exceed 50% of the volume of this means of payment (51.61%), followed by withdrawals by ATMs (44.81%). ) and cash withdrawal at stores (3.58%). “All of this speaks to the structural change brought about by the Covid-19 pandemic and that the new normal is much more digital,” he added.

plans now they represent 24.92% of the composition of credit card consumption, behind purchases in one installment (55.96%) and followed by purchases with installment plans (19.12%). According to Carballo, the growth of these plans is not something to celebrate.

“The Plan Now is to get the financial sector used to operating with medicine, with the intervention of these plans that bias the entire market and discourage the private sector. But in the end, consumption is there and consumption with credit is always good news for MSMEs because it allows them to sell more, so we can also see it from that side“, he pointed out.

Finally, in the second quarter of the year, the items with the highest YoY growth in credit, debit and prepaid card transactions were Travel, Tourism and Airlines, with 97.78%; Restaurants, with 63.50%, and Clothing, with 54.63%.

“If compared to the first quarter of this year, Travel is up 15%, which would have to do with a carryover effect from the Pre-Trip program, but there is growth in everything, with the exception of service stations and trades,” Carballo concluded. .

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