Adolescents and young people up to 24 years they use it more and more often digital wallets and explain the growth of prepaid cards associated with these applications, which have increased by 52% in the last year.
In transaction volume, these plastics have grown by 370% over the last twelve months and although its use is still much more limited than debit and credit cards, this growth speaks of a change in trend and a growing familiarity of Generation Z with digital currency.
According to data from Global Processing, a company that develops digital payment solutions in Latin America 4 out of 10 prepaid card holders are under the age of 24.
Since the Argentine financial system allows those over 13 to create an account in an app to make transactions or invest, The minimum age of wallet users has dropped significantly in the last few years. Young people use these cards to pay in physical or virtual shops, especially to play online or access streaming services.
The report shows how these digital solutions advance and go hand in hand with rising inflationthese sectors of the population use fewer and fewer banknotes and they turn more to digital money. Of the total money circulating via prepaid cards, only 5% corresponds to cash withdrawal via ATM, while 90% were intended for purchases within the countryand the remaining 5% for international consumption.
Young people are no longer so interested in owning plastic and 40% of the cards issued were in virtual formataccording to data from Global Processing, a company that manages the movement of 89% of prepaid cards operating in the country.
With a half-yearly growth of over 60%, This payment method is used 52% for gaming and entertainment purchases, while with physical paper the greatest consumption occurs in supermarkets and food shops.
With a half-yearly growth of more than 60%, this means of payment is used for 52% of purchases of games and entertainment, while the greatest consumption with the physical card takes place in supermarkets and grocery stores, the report specifies.
“As the leader in issuing prepaid cards in Argentina, it seems important to us to make valuable information available to understand the movements of the sector and the requests of users. This allows us to anticipate consumption behaviors and dynamics. The fintech ecosystem is constantly evolving and at the forefront of digital payments,” said Patricia Furlong, CEO and President of Global Processing.
Although 35% of prepaid card users reside in the Buenos Aires metropolitan area (AMBA), A high level of demand was observed in the Pampean areaa, with 31% of users and almost the same percentage in volume and number of transactions. In terms of number of users, they are followed by the NOA and NEA regions, while Patagonia and Chile have the lowest number of registered users over the past year.
On a semi-annual basis, GP Insight is carried out based on the collection and analysis of statistical information from the company, which processes more than 2.7 billion transactions per year, with the aim of making available the latest trends in the fintech sector . Through Global Processing, companies, banks, fintechs and enterprises can consolidate all money movements in one place.
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Source: Clarin
