In Buenos Aires, its common for locals and tourists to regularly visit ATMs for cash transactions, like tipping. Many establishments do accept credit cards, but it’s advised to carry both to cover all situations. Tipping in restaurants usually equates to around 10% of the bill, and in taxis small change is accepted. It’s crucial, however, to keep belongings secured to avoid theft.
Recently, Argentina has seen a shift toward digitizing payments, propelled by the fintech industry and policy changes. Traditionally, tipping has been done with cash, but with an increase in digital transactions, it’s transitioning to digital platforms. Fintech businesses are developing and promoting digital tipping services that offer convenience and safety. Government actions aiming to modernize the country’s financial systems have heavily endorsed this shift. Stakeholders across Argentina are now appreciating the benefits of digital tipping.
Leading the way in this transition is Mercado Pago, the country’s primary e-commerce platform.
Shift towards digital tipping in Argentina
The company has added a feature for digital tipping in response to the disruption of the traditional tipping system by digital payments. The move symbolizes Mercado Pago’s constant effort to drive digital transformation and improve customer experience. By doing so, the company is solidifying its position in the e-commerce sphere by promoting cashless transactions.
The Argentine government plans to support this digitization trend by permitting tipping via credit and debit cards. They’re also considering QR code payments for public transport, and urging businesses to adopt digital payment methods. This should increase financial inclusion, decrease tax evasion, and make public transport transactions more efficient.
Despite a decrease in cash usage for local payments, the significance of the US dollar remains strong. As inflation rates rise, more Argentinians are favoring credit card payments and interest-free installments. Traditional businesses have adapted to this shift by including card scanners and mobile payment apps in their point of sale systems. Various government initiatives, including subsidies on debit card purchases, have encouraged this switch from cash to card.
Pedro Filippini, a Buenos Aires barista, has embraced Mercado Pago’s digital tipping feature and noticed a trend of more generous tipping. However, he insists on the continued relevancy of cash, especially for those grappling with financial struggles.
