Mercado Pago to Apply for Banking License in Mexico

Mercado Pago, the fintech arm of Latin American e-commerce giant MercadoLibre, announced on Tuesday its intention to apply for a banking license in Mexico, aiming to establish itself as the largest digital bank in the country.

This move places Mercado Pago among the growing number of online firms seeking to broaden their services in the competitive market. Brazilian neobank Nubank, with 7 million clients in Mexico, applied for a banking license last year, while London-based Revolut obtained its license in April.

If granted, the banking license would enable Mercado Pago to offer a range of financial services in Mexico, including savings and checking accounts, certificates of deposit (CDs), commercial loans, and mortgages.

Currently, Mercado Pago provides credit and debit cards, international transfers, interest on stored funds in its digital wallet, as well as personal and small-business loans in Mexico.

Pedro Rivas, Mercado Pago's country head, expressed the company's commitment to providing digital, inclusive, and efficient financial services, stating, "We already offer services similar to traditional banking but in a digital, inclusive, and efficient way. Now we want to formalise it and become the largest completely digital bank in Mexico," according to a statement shared with Reuters.

Founded in 2003, Mercado Pago operates across Latin America and facilitates over 15 million transactions daily.