Argentina, Brazil and Chile are Rapidly Migrating to Europay, MasterCard, Visa (EMV) Technology-Enabled Payment Cards and POS Terminals

Date: 2015-10-13

“• The government increased tax on all credit and debit card purchases made abroad from 20% to 35%, in December 2013, with 50% tax on online purchases above US$25 (ARS201.9) from foreign websites. The restriction on online shopping and use of payment cards abroad was an attempt to control a drop in foreign currency reserves, which fell by 29% in 2013 to US$30.9 billion (ARS168.7 billion), a seven-year low. These restrictions are expected to result in slow growth in credit card transactions over the forecast period (2015–2019).

• The central bank of Argentina, Banco Central de la República Argentina (BCRA), in June 2014, imposed a cap of 40% on interest rates for personal loans and credit cards in an effort to increase consumer spending and to restrict lenders from charging high interest from consumers. This move encourages consumer spending, but is anticipated to negatively impact banks’ profitability. To compensate for revenue loss, banks are likely to increase fee-based charges and reduce reward programs and other benefits. 

• Argentina, Brazil and Chile are rapidly migrating to Europay, MasterCard, Visa (EMV) technology-enabled payment cards and POS terminals. American Express launched EMV cards in Argentina in June 2014. Initially, the company introduced the cards, with Citibank, for its Black and Platinum customers. However, it is expected to expand this technology to its entire card portfolio, and other banks. The implementation of EMV is expected to help reduce card fraud activity in the country over the forecast period.”

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