The Rising Cost of “Hamburger Credit” in Argentina

As Argentines grapple with economic challenges, a growing number are turning to credit cards and digital wallets to finance everyday purchases. This trend is coinciding with a surge in late payments and interest rates, making even small indulgences like a prompt-food meal increasingly expensive when financed. Purchasing a seemingly simple combo at McDonald’s on credit can now result in paying more than double the original price over a year.

Consumer Credit on the Rise

Data from Argentina’s Central Bank reveals a concerning trend: consumer credit broke a four-month streak of declines in December 2025. Personal loans grew by 1.4% in real terms, and card financing advanced by 0.8% in real terms. Year-on-year, personal loans have increased by 35.9%.

Delinquency Rates Soar

Alongside the increase in credit usage, delinquency rates are also climbing. Credit card delinquency reached 8.9% in December 2025, up from 8.4% in November and a significant increase compared to the 1.7% recorded in December 2024. This rise in defaults is prompting banks and digital wallets to raise interest rates to mitigate financial risk.

Interest Rates Skyrocket

Interest rates on personal loans have surged, ranging from 90% to 900% TNA (annual nominal rate). When factoring in taxes and administrative charges, the total financial cost (CFT) can reach 300% to 400% annually in leading banks, and even up to 1,500% annually in smaller financial institutions, according to the Central Bank. This translates to a monthly cost exceeding 8%.

The McDonald’s Combo Example

To illustrate the impact of these high rates, consider a McDonald’s Medium Quarter Pounder combo priced at $17,900 (as of the example provided). Financing this purchase through Mercado Pago reveals the escalating costs:

• 5.8% Surcharge for Installments: The price increases to $18,944.
• 3 Installments: The total cost rises to $21,861, a 22.1% increase over the original price, with monthly payments of $7,287.
• 12 Installments: The effective annual rate (TEA) reaches 112.8%, resulting in a total repayment of $38,090 – more than double the original price – in monthly installments of $3,174.

Mercado Pago and Risk Assessment

Financial advisor Nahuel Bernues, CFA, of Quaestus Consulting, explains that fintech companies like Mercado Pago base interest rates on individual credit scoring. Higher rates are applied to those with lower credit scores. Even with stable user activity, Mercado Pago, like other digital wallets, needs to ensure it can recover borrowed funds at a higher interest rate.

Andres Mendez, director of AMF Economía, notes that a 112.8% rate isn’t necessarily exorbitant given the risks and costs involved, especially for relatively small amounts. He points out that even large private banks charge around 93% TNA for salary advances, often to employees with guaranteed income.

The Broader Economic Context

Bernues adds that numerous taxes contribute to the inefficiency of the financial system, driving up rates beyond the funding rates of fintechs and banks. The current economic climate and rising debt levels paint a concerning picture for Argentinian consumers.