Why did digital transactions grow more than 2000% in Argentina?
Among many direct and indirect effects, the pandemic accelerated the digitalisation of consumption and commerce worldwide. To understand this, digital transactions in Argentina increased by 2000% during the pandemic.
This exorbitant growth marks a clear trend: online shopping is now part of the consumer mainstream. People have become accustomed to the convenience, speed and security of shopping and paying online.
What is the effect of the pandemic on digital transactions and how can businesses take advantage of this trend? Find out these and other answers below.
The effect of the pandemic on digital transactions
For well-known reasons, the whole world was forced to stay indoors in 2020. Alongside global confinement measures, the volume of digital transactions grew to unprecedented levels.
As we have already said, digital payments in Argentina grew by more than 2000% in the last 12 months. This is according to a specialised report by the Electronic Clearing House (Coelsa).
More specifically, the document takes the timeframe between January 2020 and January 2021. During that time , 74.8 million transactions between bank and non-bank accounts were carried out in the country. The transactions amounted to approximately 931 billion pesos, or 10.4 billion dollars.
2020 also saw other milestones in relation to digital payments and e-money. Red Link conducted a study based on data from 31 million customers. The report showed an acceleration of growth in the number of debit cards in circulation.
According to the study, debit cards rose from 27 million at the end of 2019 to an all-time high of 31.7 million. They thus achieved an increase of 17.7% year-on-year.
Red Link's report also showed increased use of home banking in Argentina, with a year-on-year increase of 20.9% in 2020. The peak was in July, with a record 241.4 million digital transactions.
How to benefit from this trend?
Current trends show that the digital payments industry will continue to grow at a rapid pace. The question then is: how to reap the benefits of this trend? We tell you now.
The first value to take into account in your business is the diversification of payment methods. This step will be crucial for immediate business development in the remainder of 2021 and 2022.
These digital transaction channels must not only be agile and convenient. They must also satisfy customers' concerns about security and data protection.
This brings us to the second key point to benefit from the growth in digital transactions: cybersecurity. As digital payments become more widespread, criminal activity and fraud also evolve.
For this reason, companies need to keep abreast of current trends in fraud prevention and detection. This is one of the best ways for organisations to protect themselves and their customers.
General considerations
Making a contactless payment or entering a card number on a mobile device has become the new normal for many users.
Most consumers have smartphones. Therefore, businesses have the opportunity to increase their sales through electronic payments.
Selling and buying services and products online and managing customer accounts - these are some of the key reasons why every business should adopt digital payment applications quickly.
For example, QR Code payments are gaining traction especially in emerging markets. They are very easy to use and inexpensive to implement. This payment method is expanding its reach day by day, on a par with digital wallets.
Optimise your transactions with PAGO46
Specific technological tools are available to facilitate sales. At the same time, they optimise collection processes to improve performance and achieve greater competitiveness in the market.
One of the most innovative and effective systems for digital payments and transactions is PAGO46, the fastest, safest and simplest cash payment network in Latin America.
With PAGO46, your customers will be able to buy and contract services by paying cash through the Socios46 network. This way you will reach those people who do not have a bank account or credit card.
You will be able to automate your payment channels and increase the security of your transactions. Moreover, you don't need a lot of technical resources to incorporate this tool. You can start receiving cash payments even without integration on your website.
Conclusion
While it was a pre-existing trend, the pandemic accelerated the growth of digital transactions at a dizzying pace. Today, most people have become accustomed to making purchases and payments electronically.
To stay competitive, businesses have to adapt to this reality. How can they do this? By expanding the payment possibilities they offer to their customers.
Having the best digital payment methods will allow you to reach more consumers and make more sales. Digitise your sales with PAGO46, the best cash payment solution online. Contact us today.
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