Argentina's Credit and Debit Card Market sees surge in transactions - 2024.06 Rankings
The Argentine market for credit and debit cards experienced notable growth in both transaction volumes and values during the first half of 2024, reflecting both increased usage and the impact of inflation on nominal figures. By the end of Q2 2024, debit card transactions had surged 31.5% year-on-year, with 1.49 billion transactions compared to 1.13 billion during the same period in 2023.
More strikingly, the total value of these debit card transactions grew by 287.4%, from AR$ 5,560 billion in the first half of 2023 to AR$ 21,540 billion in 2024. While part of this increase is driven by higher consumer activity, a significant component can be attributed to inflationary pressures, which have inflated the nominal value of transactions across the country.??
Credit card usage followed a similar pattern of growth. The total number of transactions grew by 38.6%, reaching 911 million in the first six months of 2024, compared to 658 million during the same period in 2023. The value of these credit card transactions saw an even larger jump, with a year-on-year increase of 314%, rising from AR$ 6,599 billion in early 2023 to AR$ 27,322 billion in 2024. Inflation continues to play a central role in these nominal increases, influencing both consumer purchasing power and the average transaction size across the board.
Market shares and Competition
Competition within the debit and credit card market is intensifying as several key players gain market share. In the debit card sector, NARANJA DIGITAL COMPA?íA FINANCIERA stands out, having gained 2.50 percentage points in market share, followed by BANCO DE LA PROVINCIA DE BUENOS AIRES, which increased its share by 1.74%. Notable gains were made also by BANCO MACRO BMA (ex ITAU), ICBC Argentina, and BRUBANK, showing a diverse competitive landscape that is increasingly favoring digital-first and regional banks.
In the credit card market, BANCO DE LA NACIóN ARGENTINA leads the pack in terms of market share gains, adding 1.09 percentage points. Other notable competitors include BANCO MACRO, BANCO DE LA PAMPA, BANCO BBVA ARGENTINA and NUEVO BANCO DEL CHACO, all of which posted smaller but significant increases in their market share during the same period.
Despite this shifting competitive landscape, the market remains highly concentrated. The top five issuers of credit cards (BANCO NACIóN, BBVA, BANCO PROVINCIA, SANTANDER and BANCO GALICIA) collectively control 64% of the total credit card market in Argentina. Similarly, the top five leaders in the debit card market (BANCO NACIóN, BANCO PROVINCIA, NARANJAX, BANCO GALICIA, and BANCO MACRO) account for 59% of the total market.
Concentration is even more pronounced in terms of financing through credit cards. The top five institutions (BANCO GALICIA, SANTANDER ARGENTINA, BBVA ARGENTINA, BANCO NACIóN and BANCO PROVINCIA) hold 61% of the market for credit card loans, underscoring the dominance of these leading financial institutions in Argentina’s credit landscape.??
This landscape highlights both opportunities and challenges for smaller and emerging players looking to capture more market share in a highly competitive and inflation-impacted environment.