BUENOS AIRES — Argentina’s interoperable QR payment system was set in motion this week, enabling any virtual wallet or bank application to read and receive an instant money transfer in a country were a 50% annual inflation and sinking local currency make speed and easiness valuable assets.

3.0 Transfers, an initiative implemented by Argentina’s central bank, known as BCRA, is expected to expand the use of electronic money with more competition instead of cash, and to encourage greater financial inclusion. “For individuals, transactions are easy, safe, fast and free. The buyer never pays commission,” the bank said in a public statement.

On its first day of operation, November 29, the BCRA said that the interoperability QR system was “successful and auspicious”. In addition, it confirmed that more than 20,000 transactions were made by the end of the day.

The service allows users to choose the most convenient payment platform, driving stakeholder’s competition to guarantee an application which offers the best user’s experience, and that works in a fast and easy way.

Suppliers will also benefit from completely instant transfers with the lowest commission. The maximum period for clearing into an account will be 25 seconds, and a charge of 0.6% to 0.8% will be applied, depending on the supplier and its price competition policy.

Since its inception in 2018 Argentina’s QR payment system has already more than 1.5 million retailers accepting the service, and until now Mercado Pago, a unit of e-commerce and online auctions Mercado Libre Inc., has been one of the leading companies.

“After one year of hard work alongside the regulator and other players in the industry, today Mercado Pago’s QRs accept other wallets and banks’ payments,” said Agustín Onagoity, Mercado Pago’s Director.

Last year, 35 public and private banks joined forces to launch MODO, an app that also could compete with Marcos Galperín’s wallet service. Both services have played an important role in driving interoperability. MODO’s chief executive officer, Rafael Soto, praised the launch of the interoperable QR system. “Everyone worked together with the Central Bank to make this possible,” he said, according to El Cronista.

Argentina’s economy contracted 9.9% last year, and in its most recent regional economic outlook the International Monetary Fund projects a 7.5% recovery for this year, followed by a 2.5% expansion in 2022.