Among many other issues left by 2019 in the field of digital economy, one of the most relevant is that of virtual wallets and electronic payments, due to its important drag effect towards 2020. While QR codes are consolidated to pay in stores, alternatives arise of fintech and banks to incorporate facilities at the time of purchase.
In this context, the question arises about whether it is possible to think that in Argentina and in the region "super apps" such as Wechat or AliPay will be developed, in which the payment is "invisible" to the activities carried out by people ( that is, those who decide to pay do so right there, without having to leave / enter another application).It is estimated that there are 4 million mobile wallet users in the country. Much of it was added during the last year and a half, as a result of the proliferation of fintech and digital banks that also began to offer more facilities and benefits. Of that total, about three million correspond to Mercado Pago.
From the Central Bank they indicate that the launch of the Uniform Virtual Key (CVU) allowed to extend the routing system of traditional bank accounts (CBU) to payment service providers (PSP) to facilitate traceability of operations. Measures of this type are key to expanding the means of payments and promoting the emergence of alternatives that streamline everyday transactions.
In the so-called "super apps", there is the possibility to find out about a product, its price, where it is convenient to buy it, consult others by chat to know its experience of use and close the purchase, at the same time and space in which it Chat with the trade. All this is possible thanks to the development of some variables that allow it.
At the regional level, Brazil stands as the example to follow. There, the first signs of platforms that allow the creation of conditions for the development of one or more "super apps" have begun to appear."These are emerging ecosystems that show if certain conditions are met. That is, if there is sufficient level of banking and if the population density is high, the retail market lends itself to that evolution," Pablo Sansuste, a partner, tells iProUP. from the consultancy Bain & Company, specialized in digital payments.
To this is added the role of the different actors in this evolution: banks, credit cards, shops, telecommunications operators and technology companies involved in both generation and processes. Success will depend on this chain and the value offered to consumers and merchants.
In other words, the ecosystem concept must contemplate a 360 view of customers, in which their data is used correctly and in order to have the best experience. "I have to surround him with those possibilities so that the means of payment becomes invisible," adds Sansuste.
If the closest regional antecedent is Brazil, how much more will we have to wait in Argentina for this evolution, which is undergoing its process, to be consolidated? Although it is difficult to risk a date, experts agree that it will go to a system in which the goal is to have a super app from which to do everything.
"In the country, different models grow in parallel. On the side of the wallets associated with CBU, VALEpei, from Link, stands out, exceeding 250,000 active users with a focus on the PtoP (sending money between people). CVU, Mercado Pago is distinguished, with a more focused use on shopping in stores by scanning QR codes, "Jorge Larravide, a technology and payment specialist, tells iProUP.Ualá, Wilobank, Naranja X, Todo Pago, Mercado Pago and Nubi make up the starting squad of the wallets and digital payment methods that have been positioned in recent years and managed to reinforce their bets whenever they had a chance. Everything indicates that, in the future, more companies will join this group.Figures time
The same leading firms begin to give their numbers. Ualá, one of the ones that stands out among the fintech, has already surpassed the growth of 1 million cards. It is the only Argentine company that was part of the Fintech 100-2019 Ranking of KPMG with just two years of operations.Mercado Pago, meanwhile, is the option that each user chooses to pay 2.6 bills per average month, which led this firm to experience a 500% growth in the amount of services paid through this virtual wallet.
This way mainly pay the benefits of DirecTV (20%), Metrogas (16%), Edesur (15%), Edenor (14%), Movistar (12%) and AySA (11%), among others. This led to the wallet recently including the "reminder" function, which facilitates and drives this behavior much more.
"In Argentina there are no major retailers. It is the reason that Mercado Libre is so strong. The use of QR grew a lot and positions it as one of the best exponents to become a super app," adds Sansuste. The executive points to Brazil, where there is not a single QR but several and where, in addition, investment in virtual wallets is high.
"There are almost daily ads. The difference is that here, being Mercado Libre the only one that offers to pay with QR, it alone assumes the cost of educating users. And part of its effort is based on communicating that benefit ", describes the Bain executive.Beyond the "traction to promo", for Larravide there are three concepts that ensure the success of virtual wallets:- Mandatory: Larravide exemplifies the imposition of the debit card in 2001, so it considers that if progress was made to a similar extent with payment apps, the sector would gain new momentum. "In fact, this path was followed in India. Practically, the use of physical tickets was replaced by payment app," he says.
- Ease of use: the specialist emphasizes that "a digital wallet, like any other application that is easy to use, generates greater engagement with the user and its frequency of use will be more relevant"- Capillarity: the key goes through the number of shops that adhere, because it is the way in which critical mass is obtained. "A wallet that develops many collection points will be more successful than one that does not have them. Here the Mercado Pago example applies well," he said.First volume, finally gain
And this is moving towards the super app? No, there is more. Sansuste, from Bain, points out that virtual wallets have no profitability for now. "It is won with cross selling. That is, from how each user uses it, information is obtained, the customer is known and, just there, new services can be offered.""That is why the user is not charged for payment and the commission to businesses is not high. The goal is to sell other products and services later," he says. Hence, the proposal focuses on where there is a higher population density, such as the City of Buenos Aires, El Conurbano, Rosario, Córdoba and Mendoza.
Once this use was incorporated, it seeks to boost profitability through the consumption of new products and services (cross selling). And that is why, little by little, more and more proposals will be seen that integrate, for example, the purchase of a product that can be received through a delivery app and paid through a virtual wallet.
In coincidence with Larravide, Sansuste points out that the instant payment worked very well in India. "And Argentina is close to going towards that scheme. The system takes care of everything. That is, the clearing of the system between the wallets with control of the BCRA," he emphasizes.
That definition allowed services such as Uber and Whatsapp to be part of virtual wallet providers. As new digital firms constantly develop technology, it enables them to venture into any business with some ease, as they handle huge volumes of user data.
The countries that better mobile phone penetration experience will be the most receptive to these technologies. In Argentina there are more than 34 million smartphones in use, according to data from Carrier and Associates. The projection for 2020 is that they climb to 51 million, which will be equivalent to a penetration of 71%, according to information from the GSMA, the association that drives the development of the mobile market in the world.
Will the evolution be towards a scenario of more diversity of digital payment services or towards consolidation? "It depends," says Larravide. In his view, from a technical point of view, few include characteristics such as biometrics to identify and authenticate people - such as VALEpei - due to issues of scale, costs and integrations.From the point of view of the business model, "the most likely scenario is to have all integrated digital wallets that dialogue with each other with QR codes that are interoperable," he says.
"There are initiatives in this regard that are beginning, but what would really make it massive is that the interoperable QR does not arise from the agreement between market players, but facilitated by a regulatory body, such as the BCRA or the AFIP, that sets unique guidelines for integration and game rules, "he says.
Sansuste and Larravide agree on the possibility of moving towards a more open ecosystem - today, wallets do so in closed ecosystems - will allow a group to lead digital payments. There may be a player more prepared than another today. But nothing prevents others from joining on proposals that seduce users, in a move like the one faced by AliPay and WeChat in China, which have their well-armed ecosystems.
A fact to show the relevance of super apps. 10 years ago the Chinese giant Alibaba created