More Argentines turn to apps for loans as debt stress hits record

In Buenos Aires, Argentina, as many gig workers struggle with debt, turning to digital loans has become a common solution. Albert Quintero, a 41-year-old courier, often faces fines and fees around 140,000 pesos ($90) for retrieving a seized motorcycle, an amount many cannot afford without borrowing. Fintech apps such as PedidosYa and Personal Pay provide loans to riders, but at exorbitant interest rates of 131% and 170% annually, respectively.

As Argentina grapples with rising living costs and job insecurity, these apps have become a crucial source of credit. The country's fintech lending sector has surged 20-fold, reaching 10 million individual loans, up from 500,000 six to seven years ago, according to Mariano Biocca, executive director of the Argentine Fintech Chamber.

President Javier Milei's economic reforms have contributed to this trend, as improved economic stability has led to increased lending by both banks and digital platforms. However, nearly 6 million Argentines are more than 90 days behind on repayments, a third of all borrowers, and the ratio of bad loans among households has reached 12.8%, the highest since records began in 2010.

Analysts note that this debt crisis extends beyond the economy, affecting young people who rely on easy credit from digital wallets but are unaware of the high real interest rates they pay. Milei's government has avoided calls for state-backed debt relief, instead viewing rising household debt as a private matter. With jobs now a top concern for Argentinians, analysts warn that personal indebtedness could become a significant political issue before the 2027 election, as the economy's stability remains a critical factor in voters' decisions.