Fintech
MercadoLibre’s Fintech Division Targets Digital Banking in Mexico with License — TradingView News
Mercado Pago, the fintech arm of Latin American e-commerce giant MercadoLibre, announced Tuesday that it will apply for a banking license in Mexico in a bid to become the country’s largest digital bank.
The announcement makes Mercado Pago the latest online company looking to expand its offerings in an increasingly crowded market.
Brazilian neobank Nubank NU, which already has 7 million customers in the country, last year applied for a license to operate as a multiple banking institution. Meanwhile, London-based Revolut obtained its own license in April.
The license would allow Mercado Pago to provide services such as savings and checking accounts, certificates of deposit (CDs), business loans and mortgages in the country.
In Mexico, Mercado Pago currently offers credit and debit cards, foreign transfers, interest on funds stored in its digital wallet, as well as personal and small business loans.
“We already offer services similar to traditional banking, but in a digital, inclusive and efficient way. Now we want to formalize this and become the largest fully digital bank in Mexico,” said Pedro Rivas, national head of Mercado Pago, in a statement shared with Reuters.
Founded in 2003, Mercado Pago operates throughout Latin America and records more than 15 million transactions per day.