ARGENTINA

Significant e-commerce opportunities in the fastest-growing market in Latin America

17.8 million online shoppers set the trend towards successful e-commerce potential in Argentina

44 Million
21 World Rank

72% Bank Account 
51% Credit Card

$7 Billion E-commerce Market 
17.8 Million Internet Shoppers

48% Penetration 
40% M-commerce Share

Experiencing an outstanding compound annual growth rate (CAGR) of 37%, Argentina is considered the fastest growing market in Latin America, with a booming e-commerce forecasted to reach $12.4 billion by 2019. In unity with a phenomenal internet penetration rate of 79%, as well as stellar smartphone penetration of 48%, among the highest in the region, Argentina sets the stage for an abundance of e-commerce opportunities. Despite recent economic difficulties, under the reign of the new business-friendly government, through prioritization of business growth and trade, policies were reversed, greatly focusing on open cross-border commerce in Argentina.

With the economic and political situation continuing to stabilize, income distribution is improving, resulting in a significant growth in Argentina's middle class, along with their spending power. Even though 77% of all online transactions are completed by card, only 21% of these are enabled for international transactions. Thus, processing locally can greatly benefit securing a wide reach over the Argentinian online shoppers. 

Similar to other emerging markets, Argentina is subject to low credit card penetration and hosts a substantially large unbanked population. Intriguingly though, in terms of e-commerce purchases, credit cards are a typical mode of transacting. Of all online transactions, 77% are made using credit cards, however, only 21% of these cards are enabled internationally. Such value for credit cards stems largely from convenience offered through payments in instalments. Instalment options make up 65% of all credit card transactions, and PayU permits merchants an avenue to access the prevailing local card schemes, such as Tarjeta Naranja effortlessly. 

In addition to credit cards, direct debit from customer’s bank account is gaining popularity, especially amongst millennials, acting as a prominent driver for online purchases. Another highly powerful payment method for e-commerce in Argentina is cash, an online payment solution offered by local brands such as Rapipago and Pago Fácil, enables customers to pay for their online purchases at thousands of locations country-wide. To pay via Rapipago or Pago Fácil, the customer simply prints out a receipt when purchasing online and then pays cash, in local currency, at one of the 24,000  delegated payment points that accept such payments. 

Bearing the most internet penetrated population in the region, along with financial inclusion priorities, Argentina is observing pivotal changes and is headed toward maturity. Through 14 years of refined experience, PayU has a preeminent footprint in Argentina’s expanding market, recognises the existing challenges and cooperates with local banks to gain status as a widely trusted brand    

Having a local entity is not always required, talk to us to find out more.

Payment Methods Available in Argentina With PayU

Credit and Debit Cards 

Cash Payments