📈 Record Sales Surge
Mercado Libre reported selling 20 million products in August 2024, its highest ever in Argentina. Initially, only supermarket products saw growth. But since May, there has been a significant rise in nonessential items. Technology products, like notebooks (up 173%), tablets (up 91%), and TVs (up 59%), led the recovery. This shows a positive shift as Argentina navigates its “economic transition.”
💰 Expanding Consumer Loans
Mercado Libre’s financial unit, Mercado Pago, reported a 69% increase in lending to consumers, merchants, and SMEs in September. More than 125,000 SMEs have received loans. These credits help small businesses with working capital and consumer financing. Interest-free installment financing also boosted physical store purchases by 68%, thanks to QR code transactions.
🌍 FinTech Growth in Latin America
Mercado Libre is thriving in Argentina, but its ambitions extend across Latin America. The company is aiming for a banking license in Mexico, with hopes to become the country’s largest digital bank. Mercado Pago’s users in Mexico have quintupled, and it’s already one of the leading digital accounts in the country. Brazil is another key market, where 63% of people engage in digital banking.
📊 The Bigger Picture
Mercado Libre’s success aligns with the broader transformation of financial services in Latin America. FinTech companies are capitalizing on smartphone use, digital banking, and changing consumer behavior. Mercado Libre’s role in this space will continue to grow, especially with its strategic push in eCommerce and financial services. The company’s next big move may reshape how millions of people manage their finances.
How will Mercado Libre’s success impact SMEs in Argentina?
