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The Argentine fintech ecosystem has grown by 11.7% in the last year.
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Despite the economic crisis, only 3.2% of companies announced permanent closure.
The fintech sector in Argentina reached 383 companies this year, which represents a growth of 11.7% compared to 2023 and the incorporation of up to 40 new local ventures. Within this panorama, the Bitcoin and Cryptocurrency sector stood out with an increase of 80%, going from 20 to 36 national projects between 2023 and 2024.
The data comes from the study “Finnovista Fintech Radar Argentina”prepared by Finnovista, an organization that is dedicated to holding events and publications to promote the development of financial technology in Latin America. The study was done in collaboration with the people at MasterCard and Galileo.
In this way, the report highlights how the fintech sector in Argentina continues to adapt to the needs of users and adverse economic conditions. According to researchers, this capacity for constant adaptation has allowed the country to consolidate itself as one of the most dynamic markets in the region in the field of fintech. In 2020, the number of companies in this sector was 217.
Thus, the results show an annual growth rate of 15.3% since 2020and reveal that only 6.7% of fintech startups closed operations, changed their business model or were acquired in 2023; In addition, 3.2% announced a permanent closure or no longer offer a functional online product.
“Argentina maintains one of the most diversified local ecosystems on the continent, highlighting Payments and Remittances solutions, financial services for its business fabric and Lending,” the report emphasizes.
In a context marked by exchange restrictions, a lots of regulations and difficulties in accessing foreign currency, the study highlights that fintech companies in Argentina have taken advantage of these conditions to grow, consolidating digital payment services and offering products such as credits and investments.
In general, the business and co-creation climate among Fintech companies in Argentina is very enriching. Everyone aligns efforts and works towards the same objective, creating an environment of collaboration that benefits both local and foreign actors.
Lucas Bianchi Etcheberry, founder and CEO of Finket.
On the other hand, it is important to mention that Foreign fintechs play a relevant role in the Argentine marketgenerating on average 21.5% of its global turnover in this market. Most of these companies, from Chile, the United States, Mexico and Colombia, stand out in sectors such as payments and remittances, in addition to offering technological infrastructure solutions for banks. Together, these areas represent more than half of the foreign presence in the country.
Among the companies of foreign origin, linked to bitcoin and cryptocurrencies that operate in Argentina, are: Binance, Bitso, Buda.com, Trubit and Cryptomarket, among others.
International startups in Argentina come, for the most part, from Chile, the United States, Mexico and Colombia.
The report also highlights the impact of inflation in Argentina in recent years, emphasizing how Citizens have turned to cryptocurrencies to protect their assets. According to Finnovista analysts, their data supports publications that establish Argentina as one of the countries with the largest number of cryptocurrency projects in the region, both of local and international origin.
Argentina is the second country in Latin America with the most operational cryptocurrency businesses. Source: Finnovista.
Due to the boom in cryptocurrency adoption, fintech companies in Argentina have intensified their offer of digital wallets. María Paula Arregui, COO of Mercado Pago, comments: “Today, users seek to protect their assets from inflation, and fintech companies have managed to capitalize on this need.”
Likewise, analysts say that consumers have become increasingly demanding and digital, demanding greater interoperability and convenience in electronic transfers. According to Finnovista, the volume of transactions processed by fintech has grown considerably, and the interoperability of the financial system has made great progress, especially with regard to payments using QR codes.
With the rise of digital wallets, consumers are demanding more convenience and ease. Source: Finnovista.
A promising future?
From Finnovista it is projected that Argentine fintech companies will experience an increase in their income in the coming yearsdriven by the growing demand for digital and accessible solutions; Furthermore, they highlight that collaboration between fintech companies and traditional players will be an important factor to continue driving this growth.
B2B Fintechs are transforming financial infrastructure, and we see enormous potential in collaborations with traditional companies to accelerate this change.
Federico Cofman, SVP, Mastercard Cluster Leader for Argentina, Uruguay and Paraguay.
According to researchers, banks have begun to see fintech companies as allies that can distribute financial services more agilely, especially in areas where they have less presence, such as credit to the most vulnerable sectors.
Banks see fintech as strategic allies to offer financial services. Source: Finnovista.
The solid growth of the fintech ecosystem in Argentina goes hand in hand with its leadership in the use of cryptocurrencies in Latin America. According to data from Chainalysis, in 2024 Argentina beat Brazil as the country with the highest volume of cryptocurrency transactions in the region, reaching USD 91.1 billion. This was reported by CriptoNoticias.
It is worth highlighting that Argentina has also established itself as an epicenter for international events related to the cryptocurrency industry.. Charles Hoskinson, founder of Cardano, recently flew to the southern country for the Constitutional Convention 2024.
Hoskinson’s talk at the University of Buenos Aires Law School not only addressed issues about the future of Blockchain technology, but also highlighted the relevance of political changes that the government of Javier Milei is carrying out throughout the territory.
Other Argentina’s recurring player is Vitalik Buterín the Russian-Canadian developer who is co-founder of the Ethereum network, whose cryptocurrency ether (ETH) is the second largest market capitalization, after bitcoin.
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