Argentina's banking sector has successfully blocked a legislative provision that would have allowed employees to receive salaries via digital wallets. The clause was dropped after President Javier Milei's party agreed to remove it to secure broader parliamentary support. This means that despite the rapid adoption of digital wallets, salary payments must still go through traditional bank accounts.
Banking Monopoly on Payroll: History and Current State
Current Argentine law mandates that salaries be deposited into bank accounts. However, trust in banks is extremely low—a 2022 central bank survey found that half of Argentines do not have a bank account. Years of economic turmoil, marked by high inflation, cash withdrawal limits, and the infamous 2001 "corralito" freeze, have fueled deep skepticism toward conventional banking. Many prefer to hold cash or U.S. dollars instead of relying on banks. Millions excluded from the formal financial system have turned to digital payment apps like Mercado Pago, Modo, Ualá, and Lemon, which serve as a vital gateway for the unbanked.
Legislative Battle: Banking Lobby Wins
The original bill let workers choose digital wallets for salary deposits. Banking sector representatives strongly opposed it. Banco Provincia argued that "the regulatory and oversight framework that applies to banks does not yet cover digital wallet providers. Such a practice could introduce legal and financial risks." In contrast, fintech firms pointed out that digital wallets are already supervised by the central bank and have expanded access to financial services. Maximiliano Raimondi, CFO of Lemon, noted: "Digital wallets have seamlessly included millions into the financial system, for free and with ease. All providers are subject to central bank regulations."
Research supports the fintech side: nine in ten Argentines want the freedom to choose where their salaries are deposited, and three-quarters of all money transfers in the country now happen through digital wallets. Yet during final debate, the government opted to drop the clause under pressure from the powerful banking lobby. As a result, the old system remains: salaries must go to banks first, then be manually transferred to digital wallets.
Digital Payment Dilemma: An Extra Step
For millions of Argentines who rely on digital wallets daily, the outcome adds unnecessary friction. While the central bank already regulates digital wallets, the law explicitly requires salaries to be paid only through banks. The banking sector insists that direct digital wallet payroll would create systemic risks. The legislative fight reflects a deeper divide between traditional banks and fintechs in Argentina's payment landscape—and consumers bear the inconvenience.