Mercado Pago, Mercado Libre’s fintech, assured that it is not interested in obtaining a banking license to operate in Mexico, this despite the fact that other competitors in the sector are migrating towards this new service channel.
“The license we have for now allows us to offer a wide range of products in many business verticals and we believe there is more to do. The banking license is not a need that we have, therefore we have not gone there,” said Pedro Rivas, general director of Mercado Pago, in an interview with El Sol de México.
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The executive recalled that Mercado Pago was born as a solution for Mercado Libre users themselves, who had to receive or collect payments for the sale of products. Then, the fintech migrated to the card payment terminal market, while launching QR codes to make payments from a mobile device, the manager explained.
“Currently, we have given more than one million loans to small and medium-sized businesses in Mexico, and with that we have both sides of the equation: sellers and consumers,” Pedro Rivas stressed.
In addition to payments within Mercado Libre, today the fintech offers various services in its mobile application, among which the collection of electricity, electricity, water or telephone services stands out, as well as subscriptions to entertainment platforms or purchase of cryptocurrencies. With the help of its ally GBM, Mercado Pago also allows its users to earn returns on their savings. In addition to this, it is used to recharge the Mexico City mobility card, which is valid on the Metro and Metrobús, among other public transport.
In Mexico, the Argentine company operates under the license of an Electronic Payment Fund Institution (IFPE), with which it can open accounts in an electronic wallet, in this case within Mercado Pago, to make transfers or payments.
According to the manager, although the company continues to explore all types of alternatives for the benefit of users, for now they remain focused on strengthening their offer of digital services in general.
“Being an IFPE has worked as a very good tool for us to place these products; practically most of the products that a bank offers we can do ourselves.”
In March, Mercado Pago reached one million credit cards less than 10 months after launching this product for its users. Rivas specified that the average financing line is 10 thousand pesos, with an approximate ticket of 600 pesos for each purchase.
“Beyond the license, which is something you must have, it has not given us advantages or disadvantages (over other competitors) to do what we are doing. Today we are the second most used financial application in the country, only behind a bank, and they use us for a lot of things.”
Data from the Fintech Association of Mexico show that, at the end of 2023, this sector was made up of more than 770 national and foreign companies.
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According to the organization, investments in this market last year amounted to almost six billion dollars, while concentrating more than 70 million users nationwide.
Until now, Nu México and Kapital are two of the fintech companies that are in the process of obtaining authorization from the National Banking and Securities Commission to be able to operate as a bank.
2024-04-23 11:00:00
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