Market Trends of Argentina Payments Industry
High Proliferation of E-commerce, Including the Rise of M-commerce and Cross-border E-commerce Supported by the Increase in Purchasing Power
- Increasingly, digital payments are becoming popular. More and more of these business models will be based on subscriptions. For instance, companies such as Loot Crate and Birch Box will experience an increase in orders due to their specialized services. New eCommerce companies can replicate a similar subscription strategy to enter this market. They are also able to generate recurring sales per month or annually. On a monthly or yearly basis, they can generate regular sales.
- Social payments are another concept of e-commerce that is rapidly becoming popular. Social payments, which PayPal popularises, enable users to send money via social media. There's a version on practically every Central Social Media Platform. Other services are available, such as Apple Pay, Google Wallet, Facebook Payments, Twitter Buy, etc. These are similar to digital banking accounts in that they can be used for payments. Platforms or shops accepting this payment can sell goods directly to their users on Social Media sites.
- The gradual growth of targeted and programmed advertising is observed. Social networking sites have already adapted their designs to take account of these changes. The use of data for determining the target audience is a new trend in programming advertising. This advertising shall be shown to the target audience of consumers. They are targeted to achieve higher returns after a certain period. It depends on getting a proper audience to the correct advertisement at the exact moment. E-commerce merchants using programmatic advertising will be able to reach a wider audience than usual retargeting because they have access to more diverse audiences.
- The industry in Argentina will continue to develop as e-commerce becomes a more popular option for consumers shopping for goods and services, and businesses in the market are likely to consolidate.
- In April 2023, according to Worldometer, Argentina had a population of about 46,340,611 and had been engaged in consumption for some time. Over 90% of consumers who have access to the Internet make their purchases online, as stated in a study recently published by CACEamara Argentina de Comercio Electronico. As a result of natural market developments and the development of new technology, e-commerce is forecast to continue growing by at least 10 % per year over the next decade.
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Point of Sale is Expected to Hold Significant Market Share
- By its ability to increase returns on investment and ease of access, the POS market has seen significant growth in recent years. In companies of small and large sizes, point-of-sale systems have become an important element in facilitating transactions from a core part of the business throughout industries such as retail, restaurants, transport, or banking.
- In addition, how consumers shop has been substantially changed by the COVID-19 pandemic affecting several vertical markets. As a result of the pandemic, the retail sector has undergone a dramatic change. Consumers are also increasingly using various selling methods, e.g., curbside pickovers, online consultation, contactless payments, and even so-called social commerce, such as shopping on Facebook. According to recent retail experts and consumer surveys, this new behavior is expected to remain in place over the forecast period. These trends affected the demand for point-of-sale terminals in the various regions.
- In recent years, global financial fraud has put pressure on government regulatory bodies to secure payment transactions. The need to use secured payment methods has become more important, given consumer demands for safe and reliable online transactions. Therefore, these regulatory bodies have positively affected the adoption of POS terminals. Mobile payment systems are becoming increasingly popular due to growing mobility trends worldwide. POS adoption rates have been increasing due to the use of cashless transactions.
- There has been an uptake in the contribution of nonbanks as cooperative agreements with the banking industry have developed in-network providers and potential issuers of payment instruments. There is considerable growth potential for swift developments in line with market trends.
