While the Government works on drafting the decree “remove exclusivity” to the SUBE card when paying for public transport, fintech companies have highlighted the change What will this step imply in terms of financial inclusion and they asked that, among the payment methods that will be added to pay for buses, trains and subways, digital wallets should not be excluded.
The “opening” of SUBE, confirmed this morning by presidential spokesman Manuel Adorni, It comes after months of plastic shortages and long queues to register cards, an obligation to avoid paying the expected transport increases. The idea, archived for years in public and private officesis to exploit NFC technology, which is available in the majority of debit, credit and prepaid cards operating in the country, and which is the same used by SUBE, to offer other means of payment that coexist with the transport card.
“Opening public transport could be the third major milestone in financial inclusion for Argentina over the last fifteen years”, explains the Fintech Chamber in a document. “The first was the inclusion of social benefits in the bank in 2011 and the secondly, the development of the CBU/CVU immediate transfer system between 2018 and 2020, which occurred alongside the growth of the fintech sector. The common denominator was an active public policy on the matter”, underlined the business group.
“The measure will bring approximately 14 million people even closer to digital payments and the use of financial products in daily life and reduces the need to use cash”, underlined the Fintech Chamber. “This is not about replacing the SUBE Cardwhich has a singular value not only for the application of social tariffs, but also for expanding the offer of payment methods with more efficient options for people, businesses and the State”, underlines the document.
Specific, The Chamber calls for payment options to be opened up for all media: credit, debit and prepaid cards, as well as QR and NFC payments with mobile phones. “The initiative must be implemented gradually and progressively according to the cost/opportunity paradigm. At the same time, transport companies must be able to freely choose the procurement system that best suits their needs”, underlined the organization.
The business entity requires it “open competition” and “do not change one monopoly for another”. “The solution is to promote an open and interoperable system that allows users of bus, train and subway networks to choose to pay for their journeys with debit, prepaid and credit cards. contactless and via mobile phone with the different solutions made available by digital wallets”
“Regulators must ensure that the paradigm of incorporating open solutions enabling transactions with all debit, prepaid, credit cards and other solutions provided by virtual wallets into the market is respected, promoting healthy competition between all players, which will translate into greater benefits for passengers.”
“The central point is to add alternatives – rather than limit the possibilities – while respecting the tariff and control structures established by the service regulatory and control authorities,” the document highlights.
SN
Source: Clarin
