Argentina's digital wallet boom and Mexico's rising unpaid consumer credit

In Argentina, the adoption of digital wallets and embedded credit is reshaping financing. Digital payment accounts grew about 21% between April and August 2024, reaching 228.5 million, while mobile transactions rose 248% in the first half of the year. The market for payments is projected to expand from USD 113 billion in 2025 to USD 570 billion by 2031 (CAGR 30.9%). Embedded credit tied to wallets reached roughly AR$13.15 trillion (about USD 9.4 billion) at the end of 2025, outpacing traditional bank lending. Fintechs such as Mercado Pago and Ualá have launched BNPL products using AI‑driven risk models to serve consumers and small businesses.

In Mexico, unpaid consumer credit is accelerating faster than new lending. During Q1 2026, the delinquent loan portfolio rose 20.6% year‑over‑year, while total new credit grew only 4.8%. The overall delinquency rate remains low at 2.2% of the banking portfolio, but credit‑card arrears hit a record MXN 23.553 billion (3.5% of the card balance) by March 2026. Consumption‑linked credit expanded 22.3% annually, far outpacing financing for services (7.2%). Specific sectors, such as agriculture in Jalisco, saw delinquency spikes of 54.5%, underscoring mounting pressure on household finances.