2023-09-25 23:52:30
Mercado Pago questioned this Monday the “switching off” of the immediate debit, a measure ordered by the Central Bank of the Argentine Republic (BCRA) and which, it assured, was promoted by traditional banking.
The fintech division (finance technology company) of MercadoLibre came to the crossroads of suspending immediate debit, which allows a user to easily enter funds they have in their traditional bank account into their digital account, something that has become common in users looking for better performance on virtual platforms.
According to Mercado Pago in a statement, “the banks want to prevent 4 million people from being able to generate returns with their money” by having “promoted” the end of automatic debit operations ordered by the Central Bank on September 14.
According to the provisions of the Central Bank, the immediate debit will be replaced from December 1 by the “immediate pull transfer” tool which, according to Mercado Pago, “has more friction for the user”, presents “flaws and does not serve as replacement”.
When it established this modification, the BCRA argued that the replacement of one mechanism with the other seeks to prevent fraud, but Mercado Pago asserted this Monday that the immediate debit “is the safest means of transfer that exists.”
“The announced measure is a new direct attack on financial inclusion, which will negatively affect the experience of millions of users and will induce the use of cash,” the company warned.
For its part, the Central Bank responded this Monday in a statement that the modifications arranged were “agreed upon” with “all actors with participation in the country’s payment system” in order to “improve the experience of users and provide to the system of better safety standards.”
According to the monetary authority, “these modifications do not alter in any way the ability of users to manage their funds among the different providers of financial products.”
The Argentine Fintech Chamber had already requested the Central Bank to review its “sudden and unconsulted decision” from the middle of this month, according to the EFE agency.
According to data from the business entity, immediate debit is used each month by regarding 4 million users, who execute an average of seven monthly transactions with this tool.
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