Greater freedom: The national government is moving to enable credit card payments in dollars and in installments.

Thenational government is working to expand currency competition in the country and facilitate new forms of consumption. After allowing dollar payments with debit cards, the goal is now to also add the ability to install credit card payments.

"The Central Bank is working to adapt the credit card systems, because they have a lot of engineering behind them. But so that credit card purchases can also be made in dollars. Also in installments," explained Silvina Rivarola, director of the bank, during an interview on the Tiempo Libre program.

The initiative comes after Economy Minister Luis Caputo predicted a boost in sales if dollar installments are enabled. "Anyone who sells in dollar installments will see a significant increase in demand," he stated a few days ago in a publication where he appeared alongside Ford officials and economic officials after a meeting on investments and "dollar remonetization."

Today, consumers can already pay in installments within the country using a mechanism called scheduled immediate debit, although its use is still limited. This system was launched in February, at the same time as dollar payments with debit cards were enabled. It allows prearranged payment arrangements to include the purchase value, the number of installments, the currency, and the dates of automatic debit payments from a savings account.

However, the scheme has a key drawback: there's no guarantee for the merchant if the customer doesn't have a balance at the time of the debit. "It's a very risky operation for merchants, since they deliver the product or service and payment depends on whether there's enough money when the debit date arrives," warned one firm in the electronic payments sector.

A financial institution added that banks do not mediate in these types of transactions. "The merchant assumes the risk of nonpayment, and the bank will not intervene to cover the shortfall," they stated. They also asked: "Given the photo Caputo posted, we have to determine who is assuming that risk... whether it is the dealership, Ford, or both."

The model the Central Bank used as a reference was originally developed by the Despegar platform, which since last year has allowed travelers abroad to pay for their trips in three interest-free installments, even during the lockdown. To achieve this, it implemented its own financing, with the condition that the customer completes payment seven days before the flight. This logic is what inspired the BCRA to design the current scheduled immediate debit system.