(Argentina) Card spending on tourism and gastronomy grew almost 50% in the first quarter

Travel, airlines and tourism dominated card purchases by Argentines during the summer. Credit still prevails over debit and instalments are on the rise

Buenos Aires – During the first quarter of 2022, purchases with cards (debit, credit and prepaid) in the travel, tourism and airlines category grew 48.58%, according to the recent Prisma Medios de Pago Index. A category that had fallen 6.13% in 2021, as a result of the restrictions due to the pandemic, and grew pushed by the liberalisation of the same and also by the pre-retirement programme.

The Prisma index, which for the first time measured the performance in purchases of different items, showed that during the first quarter of the year card purchases in restaurants grew 35.26% year-on-year (y.a.).

Items with more card purchases:

Travel, tourism and airlines: +48.58% year-on-year.
Restaurants: +35.26 y.a.
Education and health: +20.78 y.a.
Auto parts and motorbikes: +20.64 y.a.

The Prisma study also highlights that, during the first quarter of 2022, Argentines used credit cards more than debit cards. Credit cards, which grew by just 1.50% compared to the same period in 2021, accounted for 49.49% of all card purchases.

What is striking is how much debit card spending grew: 23.20% year-on-year, accounting for 49.20% of card transactions. Among other things, this is explained by a much more active use for expenses that were previously (more frequently) made with cash (growth of e-commerce in even traditional items).

In the first quarter of 2022, the year-on-year growth in the number of credit and debit card transactions that we saw in the last quarter of 2021 will continue”, explained Julián Ballarino, Head of Institutional Relations at Prisma Medios de Pago, a company that operates in Argentina and 14 other Latin American countries and processes more than 12.5 billion transactions a year.

More marginal is the representation of prepaid cards, whose use fell 63.21% and represents only 1.37% of card transactions.
Debit is growing but credit still prevails

Consumption by type of card Debit is growing but credit still prevails (Prisma medios de pago)

Credit cards: banks do not update limits and their use falls in Argentina
What is debit used for?

Credit card purchases accounted for 52.86% of transactions, followed by ATM withdrawals (43.60%) and finally cash withdrawals in shops (3.54%).
Purchases with this card grew during the first quarter of 2022.

What is debit used for? Purchases with this card grew during the first quarter of 2022 (Prisma medios de pago)
What about instalments?

In terms of credit card consumption, one-payment purchases accounted for 56.75% of spending, followed by purchases with “Ahora” instalment plans (24.60%) and instalment plans (from banks), with 18.64%. Ballarino pointed out that “there is a slight year-on-year growth in the Ahora 3 and Ahora 6 plans”.
One-payment purchases are the majority

Installments with credit Purchases in one payment are the majority (Prisma medios de pago)

Author: bloomberglinea.com