Argentina's President, Javier Milei, has implemented a series of economic reforms that are having a significant impact on the country's monetary system and payment landscape. As a result of Milei's economic overhaul plan, Argentina is experiencing a shift towards digital payments and away from cash. The fintech boom, coupled with the government's reforms, has contributed to this transformation [606d8447].
One of the key players in this shift is Mercado Pago, the payments unit of e-commerce giant MercadoLibre. Mercado Pago has introduced a tipping function in its app, reflecting the integration of fintech in Argentina. This move has led to a decline in the use of cash for gratuities, as more people opt for digital payments. Additionally, credit card payments have surged as Argentines take advantage of interest-free payment installments. The government is also considering formalizing tipping on credit and debit cards and introducing digital payment options for public transport. These developments indicate a growing acceptance and adoption of digital payment methods in the country [606d8447].
While the shift towards digital payments is evident, cash still plays a significant role in Argentina. Many people in the country still rely on cash, especially those who struggle financially. However, the advantages offered by platforms like Mercado Pago, such as convenience and security, are driving the adoption of digital payments. Cash payments at supermarkets have decreased, but the use of US dollars remains prevalent. This suggests that while digital payments are gaining popularity, there is still a need for cash in certain transactions and situations [606d8447].