In Argentina, 62% of people increased their use of digital payments during the pandemic and 40% experimented with new payment methods. This was reported by the Fintech BKR and they shared some tips with Cointelegraph en Español for handling cards.
“”The alternative to using prepaid cards issued by digital wallets is a financial inclusion solution that allows those without a bank account to shop online for free and get discounts. Prepaid cards allow more people to become part of the online consumer ecosystem, ”it said in a statement.
“The Argentine market is at the forefront when you consider that 40% of consumers were introduced to new payment methods during the pandemic and that there are already at least 25 of these types of products. However, the truth is that their use is becoming increasingly widespread, but doubts about their use may remain, ”they later added.
From the Fintech BKR they shared some key points for users in Argentina:
– What is a prepaid card? It’s a card that resembles a wallet or a fintech company and works similarly to a debit card issued by a bank.
– Does it work like a credit card? No. If it is a prepaid card issued by a wallet, it is currently being paid for with the money we put on our account. It is a digital cash payment that can only be operated against credit. There is no credit, but debit.
– How can money be loaded onto the prepaid card in order to use it? Funds can be provided by bank transfer, transfer from another digital wallet or by making deposits in Rapipago.
– How do I get a prepaid card? What papers or procedures are required? First you have to register in the app using a DNI. This is the only requirement. You don’t need to have a bank account. Once the registration has been confirmed by email – which takes no more than 24 hours – all you have to do is request the prepaid card via a button in the same application. No other documents or additional documents are required. Anyone registered in the application can use the card to withdraw money from an ATM or Rapipago and also present the DNI after checking that they have funds in the account.
– Can you pay with the Pregaga card and also with QR in the same store? Yes you can. It is only required that the merchant accept payments with the flag of the card (e.g. Mastercard) and also have the QR of the wallet in which the funds are located (this is the case until the interoperable QRs are implemented, i.e. there is a QR only for all wallets). Both transactions use the unique balance of the same digital account.
According to a survey by Mastercard and Kantar cited by BKR, at least 38% of respondents tried a new payment method (digital or contactless) during the months of the pandemic, and 37% said they had changed their payment behavior due to the crisis.
In total, there are already more than 25 prepaid card issuers in Argentina, including Mercado Pago, Naranja X, Moni, Pago24 and BKR.
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