The growth of virtual wallets has no brake. Because of the benefits they offer, they have become the option that Argentina's preference is gaining when making a purchase or paying for a service.And it is logical that this is the case: sales in hundreds of shops, transfer comfort and greater security are some of the "beans" that are in their favor. By the way, its advantages do not only apply to ordinary citizens. Also to businesses, which reduce commission costs and that makes each day add more. Even those who did not come accepting another form of payment other than cash.When it comes to putting figures into the matter, from the consulting firm Kantar they point out that six out of 10 Argentines recently made a transaction through the cell phone. In addition, this boom not only brings together the youngest, but two thirds is between 35 and 49 years old.In the midst of this climate of bonanza, a cloud appeared in the sky of the fintech: AFIP announced that these companies will become agents of withholding of Value Added Tax (VAT) and Profit, as it was quickly criticized by the firms of the sector."It is through the lobby of the banks to see that they are losing ground," he tells iProUP a high source of the fintech ecosystem that asks not to be identified for fear of avoiding a break in the truce between the traditional financial sector and online.He clarifies that this confrontation comes from a handful of entities that do not want to share synergies and believes that such onslaught "makes no sense, since most of our users are people that traditional banks have decided to leave out."Strictly speaking, the new "tax backpack" is a "lukewarm" water bucket, as the industry expected that at some point it would happen. To the point that he was negotiating ways to cushion its effects. Even so, they observe that it goes against several BCRA principles, such as reducing the use of cash and promoting financial inclusion.What does the treasury sayThe AFIP published the general resolution 4622/2019, which establishes that, as of November 19, the electronic payment means must make withholdings of two taxes. That is, when a transaction is made, the fintech must immediately deduct the levies (by way of tax advance of the merchant or point of sale).This will be done as follows:In the case of micro companies or potential Micro Companies, they must access the AFIP site with a tax code, go to the "Special Registries" menu, "Special Features and Registries", "Benefit Registry" and select the characterization "430 - Benefit Exemption of Withholdings - Electronic payments ".For their part, "the monotributistas should not suffer withholdings since they are exempt from both taxes, in such a way that they would not have a financial impact," Sebastián M. Domínguez, partner taxpayer of the SDC Asesores study, tells iProUP.According to experts consulted by iProUP, while the rule seems like a "hands-on" tax between the wallet and the merchant, it will surely affect the prices of goods and services in establishments that use these tools as a means of payment."The main objective is to achieve traceability of all operations. Someone who sells through a virtual wallet receives the money and instead of transferring it to the banks, pays a supplier or consumes in other stores, thus avoiding the system of retention, "says Dominguez.In his vision, the electronic money circuit is off the AFIP radar, in addition to making it difficult for him to know who made the purchase and where he made it. For example, expenses with QR using the unicorn wallet appear in the card summary with the legend "Mercado Pago"."With the information regime that launched last week, the Treasury seeks traceability. And with this resolution it withholds taxes. Traceability is good, but it also needs to raise more," the taxpayer completes.Pocket impactThe success of virtual wallets is based on the flexibility it offers merchants to accept cards. Although their commissions are higher than those of POS charging devices, they do not have a fixed monthly charge like the latter, so entry barriers are much lower.In another order, the accreditation of money is faster, an item that is very taken into account in times of high inflation and exchange volatility. For example:- In the traditional system: a credit card sale is tied to a commission of 2.15% final. Meanwhile, the merchant receives the money within 10 business days (about 15 calendar days)- On the other hand, with the QR or the Mercado Pago Point device, that same purchase is subject to the following charges: 5.49% if it is with immediate transfer, 2.15% after 14 days, it is reduced to 1.49 % at 30 days and becomes 0% at 60 daysThe company commanded by Marcos Galperín does not charge any commission to the establishment if the user pays with debit or account balance, so thousands of businesses have begun to adopt this option to extend the benefits they propose for cash payment.Now all this changed: after the resolution of the AFIP, Mercado Pago will charge the seller a 0.6% charge. And the commission for card payment and receiving the funds will instantly climb to almost 6% (plus VAT).According to Dominguez, there is no doubt that it will be more expensive to sell with QR and, ultimately, that cost will end up moving to the user. Likewise, the collection agency seeks to avoid informality since wallets allow anyone to accept collections regardless of their situation before the treasury.Without going any further, the regulation imposes a 10.5% retention on those who are not registered as autonomous or in Monotax. These sellers may stop accepting wallets or apply increases. "If the trade has a balance in favor of both taxes and does not ask for the certificate for not having everything in order, it will transfer it to the price," says Dominguez.Ignacio E. Carballo, director of the UCA Fintech & Digital Banking Program, says: "In an economy without reference prices, such as Argentina's these days, it is very likely that this measure has an impact on the final amounts. , I encourage you to say that it will encourage the slogan 'cheaper in cash' that is still seen in many places in the country. From the maximum, it will directly increase the good, "he adds.The only thing that will be out of a possible price increase will be mobile phone recharges, SUBE card and payment of services, as is the case with home banking systems.CriticsThe measure reaps more criticism than praise. Moreover, considering that the Central Bank of this government was the one that led to the sustained growth of fintech."Since March we have spoken with the AFIP. We believe that it goes against the flow and what is being done in the world, where tax incentives are granted to digital payment methods. Not only virtual wallets, but also credit cards. credit and debit, "says Juan Pablo Bruzzo, president of the Argentine Fintech Chamber, to iProUP.The manager, who is also CEO of Moni, describes the decision as a "short-term measure to increase revenue collection, in a context of crisis. The medium and long-term impact that the incentive for the use of digital payments can have is lost, not only at the level of collection, but also of financial inclusion "At this point, remember how in Uruguay a VAT discount for debit payment generated an increase in transactions that more than offset the collection.For economist Ariel Setton, this measure "is a consequence of the fintech boom. Particularly of the explosion of MP, the arrival of the QR payment and the emergence of competitors of weight, such as NaranjaX". He points out that "although it balances the balance with respect to 'traditional' methods, it in turn discourages the massive emergence of new traders.""Not only will they have withholdings on account of VAT and Profits: it will cause MP to start charging them more for payments with QR even if it is with debit or wallet balance," he adds."For Carballo," it is a measure inconsistent with the position taken by the State to reduce the use of cash and generates a disincentive to the use of electronic payment means. ""Fintech will adapt, as is its nature, but these intermittences do nothing but give diffuse signals that limit long-term planning in any type of investment," he concludes.