Although the development of e-commerce in Argentina is not as good as that of Brazil and Mexico, it has demonstrated its strong vitality and development potential through the momentum of headwind growth.
During the period of economic difficulties and policy adjustments in the past few years, Argentina’s real economy has suffered significant setbacks, and general commodity consumption has dropped by 5%. Against this background, e-commerce business has always maintained a high growth trend. Argentina’s e-commerce has reached an annual growth rate of 28%, which can be described as “outstanding” during a period of sluggish overall economic growth. Nowadays, as the policy tilts towards business, Argentina’s e-commerce industry has also ushered in an opportunity to rebound, becoming one of the countries with the most development potential in the Latin American e-commerce market.
(1) The potential for the development of e-commerce in Argentina
Argentina is located in the southeast of South America and is the third largest economy in Latin America. The national education level is relatively high, with a literacy rate of 98. % and has a larger middle class than other Latin American countries. The total population is approximately 44.49 million, 37% of which is concentrated in the capital Buenos Aires. The number of Internet users nationwide is 41.59 million, with a penetration rate of 93%. The number of mobile users is 38.47 million, with a penetration rate of 86%.
MercadoLibre, Latin America’s largest e-commerce website, was born in Argentina. Argentina is currently the fastest-growing e-commerce market in Latin America, with an annual growth rate of 28%. Estimated share of e-commerce in total retail sales in the three Latin American countries from 2015 to 2020.
Passionate about online shopping
Up to 20 million people in Argentina are expected to shop online by 2021. Compared with other Latin American countries, Argentina’s main consumers are concentrated in people aged 25 to 34 with stable incomes. Argentines are very fond of online shopping. Chinese online stores are especially favored by young Argentine consumers due to their rich products, low prices, and often door-to-door and free shipping services. Instructional posts such as “How to shop on Chinese websites” can also be seen on some websites and forums in Argentina.
2. Various payment methods
The main e-commerce payment methods in Argentina include cash payment, online banking transfer and credit card payment, etc.
(1) Cash Payment
Rapipago – a local offline payment method in Argentina. After placing an order online, consumers can complete the payment at any offline Rapipago outlet.
PagoFacil – a payment company in Mexico. Users can complete payment online using credit card POS machines, emails, etc., or they can complete payment offline in small supermarkets.
Banelco – a local electronic banking service provider in Argentina, has an extensive automatic cash withdrawal system in Argentina.
DineroMail–After users register an account with their email address, they can deposit money into the account and then complete the payment using their email account.
(2) Online banking transfer
When users register for online banking accounts, the four major banks in Argentina are the first choice.
Banco de la Naci6n Argentina (National Bank of Argentina) is the largest bank in Argentina. The National Bank of Argentina has long been the main institution for domestic lending in Argentina’s credit-crunched economy.
Santander Ri6 (Santander Bank), also known as Banco Internacional de España, is a world-renowned multi-functional bank. The bank’s transaction size currently ranks ninth in the world and second in the Eurozone
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Ita (Itaú Bank), the largest bank in Latin America, merged with Unibanco in November 2008 to form Ila Unibanco. The bank is headquartered in Sao Paulo, Brazil. It has approximately 96,000 employees and operates in more than 20 countries and regions in the Americas, Asia and Europe.
Banco Provincia (Provincial Bank of Buenos Aires), a state-owned bank in Argentina. It is Argentina’s second-largest bank by the value of assets and deposits.
(3) Credit Cards
The popularity of credit cards in Argentina is gradually increasing, but due to the government’s foreign exchange controls, consumers who use credit cards to spend overseas have to bear an additional 35% tax.