Cash Still King In Paraguay, Argentina Despite Increased Digital-Payment Penetration

Argentina is the second country in Latin America after Paraguay where banknotes and coins are most used, according to a private sector survey

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Buenos Aires — Paraguay is the South American country in which more people continue to use cash, followed by Argentina, according to a private sector survey on payment-method preferences in Argentina, Chile, Paraguay and Uruguay.

Two out of every three Argentine merchants prefer cash payments due to commissions and delays in crediting other methods, such as debit or credit cards and digital payments, according to the survey carried out by Prosegur, a global security company.

Most merchants and small businesses in Argentina prefer cash as a form of payment, while eight out of ten consider it as “fundamental for the development of their business”, the report states, adding that, for 84% of those surveyed, cash is the most-used means of payment, followed by virtual wallets (64%), and debit cards, with 59%.

Meanwhile, 64% of those surveyed said they prefer to conduct sales with cash over other types of payments.

However, despite the fact that most merchants still opt for cash, a recent survey by MercadoPago shows that 70% of people in Argentina claim to be using cash less and less.

Methods of payment in Latin America

The Prosegur study, which aims to understand the perception of retailers and small businesses on the role of different means of payment for the management of their business, was conducted simultaneously in Argentina, Chile, Paraguay and Uruguay, among companies across different industries and cities.

In all four countries, cash is the form of payment that is most valued by merchants: Uruguay (83%), Chile (77%), Paraguay (66%) and Argentina (64%).

In three of the four countries surveyed, cash ranks first among the payment methods used.

In the comparison by country, Argentina ranks second in terms of cash use, only behind Paraguay, where 91% said that it is the preferred means of payment.