In a recently viral video, a young woman outlines her financial strategy: “I take out a AR$20,000 loan from Mercado Pago. And to pay that loan, I take out a loan from Ualá. Then I take out another loan from Mercado Pago and use that to pay Ualá. Mercado Pago and Ualá pay each other; I don’t put in a single peso.” The friend capturing the moment advises her: “Don’t inform your father, as he will be furious.” The clip might elicit laughter, yet it underscores the serious challenges that numerous Argentine families are presently encountering. Official figures indicate that delinquency in non-bank credit, primarily consisting of e-wallets, stood at 22.8% in December. This indicates that almost 25% of personal loans obtained via virtual wallets are currently in default. Non-bank lending is experiencing significant growth. Consultant firm EcoGo reports that the figure increased by 1.2% month-on-month in real terms in December, culminating in a total stock of AR$ 13.15 trillion. In the last quarter, it has experienced growth at a rate surpassing that of bank credit. According to a source, an economist holding a master’s degree in development, the increase in app usage alongside rising delinquency can be partially explained by “an economy that grows without generating jobs or redistributing income.” According to the national statistics institute INDEC, Argentina’s economy experienced a growth of 4.4% in 2025. That growth, however, was primarily propelled by agriculture and financial intermediation, two sectors that do “not translate into more money for the middle and lower classes,” Cirmi Obón contended. “Debt is currently filling the gap left by missing wages or insufficient income, even for people holding multiple jobs,” she stated. EcoGo reports that non-bank credit currently represents 2.4% of consumer lending, equating to 143% of the total wage bill for self-employed and informal workers.
Cirmi Obón noted that virtual wallets have emerged as a borrowing source, largely due to a significant portion of the population being “excluded from the credit system, either for not meeting requirements or because of risk aversion in a country where the banking system left people out for a long time.” Ariel Parajón notes that lenders of last resort surfaced in the country amid economic crises, particularly during the late 1990s and early 2000s. “These were financial institutions or lenders where individuals could deposit their ID card or a copy to secure rapid credit and acquire cash,” he stated, noting that fintech companies have supplanted them. “Technological infrastructure enables the coexistence of the casino, in the context of digital betting, and the bank that provides financing, all on a single device,” stated Parajón. “Permanent immediacy, the acceleration of information flow, and economic urgencies lead to a lack of reflection,” he stated, noting that applications focus on users’ financial transactions, which may evolve into suggestions for incurring debt. Cirmi Obón concurs, noting that fintech companies frequently impose elevated or less regulated interest rates to mitigate that risk. “But there’s also another factor: the profound lack of financial education we all have,” stated the economist.
Today, for instance, the Annual Total Financial Cost (which encompasses interest, insurance, commissions, and administrative fees) of a 12-month personal loan from Mercado Pago can fluctuate between 400% and 500%. In contrast, a comparable loan from Banco Nación, excluding the “Cuenta Nación” service package, has an interest rate of 169%. This reporter conducted an analysis: on the application established by Marcos Galperín, a loan of AR$916,146 could be settled in 12 monthly payments of AR$158,369.89 — resulting in a total repayment surpassing AR$1.9 million, which is more than double the initial amount borrowed, excluding any supplementary fees. “The space previously occupied by companies providing usurious loans has now transitioned to these applications, which frequently enable individuals to utilize credit for essential expenditures. “That’s largely what people are covering with these loans,” the economist added.
A report indicates that 88.1% of households in that province financed food purchases using credit cards, virtual wallets, store credit, or borrowed funds. Consequently, merely 11.9% managed to meet those expenses without the need for any financing options. “A significantly accelerated digital access indicates that numerous individuals are currently incurring debt without fully recognizing it. “We have countless cases like that,” Cirmi Obón stated. In her perspective, these applications require regulation and taxation — not solely concerning interest rates. She contends that it represents “an opportunity for the state to understand a world that until now has been informal,” while also serving as a means to assist individuals who depend on virtual wallets and “improve tax collection to fund future pensions.”