An important chapter has just opened, so it is expected to pave the way for new forms of payment in Argentina.
Future payments will have no cash or cards. Enough with bring a cell phone or other device to a collection terminal. The cashless era will be based on passing values in bits and without "real" exchanges. Almost like magic.
Like 2019 is the year that contactless technology (which enables compatible card payments) expands to reach 60% of the collection of payment devices, Argentina has just entered the next phase of payment methods.
The first step in that direction is taken. Galicia and Mastercard with the watchmaker intelligent Garminwhose the team may Direct support on the device. for him pay for surgery by simply stretching your arm, making the experience almost frictionless.
Repeating the prestigious statement of the Argentine witch, "it can't be done any faster". Other than that, this method is still faster that QR code itself, where you must open the application, scan the code, choose a card and accept transactions. And who lives it moment of glory with 2.3 million monthly users and 1.2 million monthly transactions are recorded every month Payment Market.
So that practicality of the contactless transaction (no contact) strongly drives developing trends worldwide: according to eMarketer, more than 1 billion people will pay using this method by 2020. That is, one in seven.
Within this framework, Argentina can pay with yours Smart watch and taste the bite of what has already appeared: the operation to be performed with mobile, bracelet, rang and whatever other elements that integrates a device that does all the "tricks": NFC chip.
While foreign users of Google Pay, Apple Pay o Samsung Pay can now pay with their cell phones and smart watches in the Albiceleste region, La Banco Galicia and Mastercard clients will be Argentina first they can do it locally.
As anticipated iProUPthat next step from "Revolution without contact"realize that tokenization the card is plastic information encryption so it can be used digitally and minimize the possibility of fraud.
"Here development is our MVP (Minimum viable products), we have been tokenizing whole container MasterCard, it has the possibility of being used in wallet, Clothing products like Fitbit, Apple or Samsung, "he said iProUP Alejandro Falco, coordinator of digital payment instruments at Banco Galicia.
Executives anticipate that this does not only refer to those who have Contactless Mastercard, but also for other technology. "All who have card with a band or chip you also can Take advantage of discounts of the Sunday without contact"He said.
According to Falco, tokenization will also allow plastic to be used in digital environments, such as Netflix, Spotify, or Uber. "That tokens are associated with users, devices and merchants"It is possible to use the card only in that condition, avoiding fraud," he explained.
So that Galicia will bring this functionality to mobile banking application for people to pay for goods or services directly by carrying a cell phone. They also plan to bring this technology to Visa, even though they are starting with their competitors on the issue of available capacity. "First Data came first to give Mastercard a sign that Prisma is a Visa," he said.
What will come
With card tokenization Credit, experts ensure fans are opened for new digital payment instruments, allowing you to increase financial inclusion.
"I should have reached NFC phone"said Ignacio E. Carballo, director of programs at Fintech & Digital Banking UCA. This is what Jorge Larravide, technology and payments specialist agreed, except for phones and cards, the rest are devices that" do not have a large volume but contribute to innovative growth. "
"That The next revolution is biometrics.both enter facial recognition how fingerprint. I have all the devices related to me and I will authenticate myself in front of the terminal, who will ask me how I want to pay, "he anticipated.
However, paying with "anything" will largely depend on consumer habits and the company's efforts to make the method as comfortable as possible.
"Of course, the younger ones will be encouraged to try it first. But more than the product offering, it will mostly depend on the design. It will initially be used for small purchases, such as runners who wear Garmin watches and stop to buy a bottle of water. "he explained. Carballo
Larravide made sure of this new payment instrument They are aimed at people in large cities, from 25 to 45 years old and with a medium and high socioeconomic level. Therefore, it is recommended that companies communicate more and the government encourages this product.
"When electronic media was launched in cash, there was a promotion behind it. Companies had to invest in communication to report on available media and teach how to use it, because virtual wallets have been around since 2016, but there are still people who don't know." , he pointed.
The era of "cashless" has begun. And according to Larravide, there is a number the factors that make it that Argentina is a profitable country for massification electronic money:
– Great need reduce operating costs and to move cash
– because of fear bank robbery and shops
– Comfort, to avoid regularly going to an ATM
"The most important thing in a cashless era is that people have alternatives. People want to be included, but they also want options to be chosen," Carballo said.
As revealed to iProUP The two main card players, so far the following amount of plastic has been issued:
– Mastercard: 2.2 million
– Visa: 10 million
Like this new technology represent close 15% of total payment credentials: According to the Central Bank, the park consists of 90 million cards (not all active), divided into 42 million credits and 48 million debits.
Juan Fantoni, Director of Business Development at Mastercard, assured iProUP that there are already more than 360,000 stores they have Contactless collection systemso this technology has shown expansion rate even that higher payment QR, when Mercado Pago recruited around 260,000 stores in the country.
The manager ensures that apart Galicia and Garmin, "we are already in a conversation and go ahead with a proposal, both with fintechs and traditional banks, to make it possible digital wallet and use Clothing products – Watch or bracelet – as a means of payment ".
Meanwhile, Gabriela Renaudo, Country Group Manager for Argentina and Southern Cone Visa, pointed out that for many years paid application with great players "around the world along with stations like Apple, Google, Samsungamong others "And they also do it in the region, so Argentina will be the next country on the road map.
"Get in Chile we throw two digital wallets And enter Paraguay, since the beginning of the year, 10 banks They have their own visa. Something similar happened with the introduction of Bigo in Uruguay. "In Argentina, this technology may also be available in the short term," Renaudo said.
The executive noted that the brand has experimented with smart clothing, how rings and even gloves, so you don't need to take out a cell phone or a credit card. "Almost all connected devices can become places to buy, buy and pay. This is a new era of connected commerce," he said.
For what cell phones became a means of payment, You must have NFC chip, technology that allows communication between nearby equipment and those currently integrated into mid and high range telephones.
Just as that would be a "substitute" for plastic, that is Stores can also use it receive payments from contactless plastic (or other phone) without using additional equipment.
"Master card available Touchez on phone technology Through the region. In other countries already operating. "In Argentina it can be used as soon as the buyer wants to implement it," said Fantoni.
Banks can offer greater benefits Mobile banking, such as the possibility of paying in trades or what your clients do transfer each other "To crash against"that mobile. In addition to Mercado Pago, bigtech can offer its wallets: Google Pay, Apple Pay and Alipay, among others.
In this way, Argentina prepares to start new stage in digitizing money. Cash will continue to lead, but nothing can stop the cell payment revolution.