🔍 MercadoLibre's Ambitious Plan
MercadoLibre is in discussions with Mexico's central bank, finance ministry, and banking regulators to apply for a banking license. Osvaldo Gimenez, president of Mercado Pago, revealed this news on May 21, 2024. He highlighted the potential, drawing parallels to Brazil's financial growth over the last decade. "The opportunity is phenomenal," said Gimenez. He emphasized the company's goal to be a major player in this space, enabling the launch of more financial products.
💳 Advantages of a Banking License
Currently holding a FinTech license, MercadoLibre aims to leverage a banking license for greater flexibility. This would allow them to receive payroll deposits, lift limits on held amounts, and expedite credit card approvals and issuance. Gimenez stated, "The banking license will make a lot of things easier, from how we offer credit to users to how we can offer investment products." The process to obtain this license might take 12 to 24 months.
📈 Mexico's FinTech Landscape
Mexico is becoming a hotspot for FinTech startups, with less than half the population having bank accounts. British FinTech Revolut recently obtained a banking license, and Brazilian company Nubank has applied for one. This growing interest is driven by the need to improve financial inclusion and digital payment adoption in Mexico.
🛒 Hybrid Shopping Trends
The Click-and-Mortar™ shopping model is gaining traction in Mexico, where consumers appreciate the combination of in-store experiences and digital convenience. PYMNTS Intelligence research shows that nearly 40% of Mexican consumers use these hybrid shopping resources. This trend presents a wealth of opportunities for merchants to enhance their digital features and appeal to the growing digital-savvy consumer base.
Will MercadoLibre dominate Mexico's digital banking?
