Although the growth of digital payment methods is an undeniable trend of the last three years, the prevailing among merchants cash preference at the time of payment.
Tickets continue to be the most used means of payment for consumers and business owners point out that the tax costs, commissions and credit delays of payments are the main “disadvantages” that digital money finds.
According to data from the Central Bank, digital payments, especially those made by mobile phones, they doubled in a year. However, Argentina remains the second country in the region where the use of cash is in forceonly behind Paraguay.
According to a study carried out by the consulting firm OH Panel, in the neighboring country, 91% of those questioned stated that physical money is the most used form of payment; while in Argentina this figure drops to 84%. In the country they rank behind virtual wallets, which according to 69% of respondents are the most used and, finally, debit cards.
This was demonstrated by the study, conducted by the consultant at the request of the Prosegur transporter in four countries of the region 64% of merchants said they prefer to receive payments in cash above all other alternatives. This despite the hassle and additional costs what can it mean to treat with more and more bills due to inflation.
In comparison with other countries, cash appears less appreciated among Argentine merchants than those of neighboring countries: while 64% of locals highlighted their use, this figure rises to 69% of Paraguayans and 83% of shops in Uruguay.
In Argentina, the preference for using cash stands out because it is exempt from charging fees and also due to delays in credit times for other methods, such as debit or credit cards.
For this reason, 74% of those interviewed plan to pay by ticket the cheapest wayand 36% as the safest. Similarly, 41% of companies and SMEs declare that, of total sales, over 50% are made in cash.
Interviewees also indicated the reasons why they do not prefer electronic or card payments: the main one, highlighted by 47% of the total, is the frequent system malfunctionsan issue that caused 76% of companies surveyed to lose money or sales.
Additionally, 77% are concerned about the possibility of being one crime victim electronic and another 64% say they lose money or sales if the payment is made by credit card.
Despite very high inflation, six out of 10 Argentine merchants said they prefer to collect in cash Facilitate daily cash control.
“The results obtained from the study show that the majority of businesses and SMEs prefer to have banknotes and that the existence and growth of other means of payment does not replace cash, as it is the most direct, simplest, without commissions, safe and inclusive, as well as not depending on technological factors”, highlighted Prosegur, which in fact has its main activity is the transfer of cash.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.