Nearshore Americas
Libre Mexico

Mercado Libre Will Give Commercial Banking a Shot in Mexico

Argentine e-commerce giant Mercado Libre secured a US$250 million credit from JPMorgan to launch a full-scale commercial banking service in Mexico.

Mercado Libre is seeking a banking license to offer savings and checking accounts, as well as commercial loans and mortgages, according to a report by Reuters. These services would be provided through the company’s fintech arm, Mercado Pago.

Mercado Pago already provides some financial services, such as credit cards, savings accounts, personal loans and payment processing. Its most recent plan, however, would take the company into full-fledged banking.

Securing a banking license would position Mercado Libre as a direct competitor in Mexico’s established financial institutions, potentially making it one of the largest digital banks in Latin America.

A portion of the US$250 million credit line will go toward extending loans to small and medium-sized enterprises (SMEs) in Mexico. The rest will be used for ramping up retailing operations.

Over the past year, Mercado Libre has seen a doubling of its mobile credit card readers in Mexico, and its loan portfolio has grown to US$1.5 billion as of Q2 2024.

Mercado Libre made its first steps into financial services in 2017. Back then, it clearly stated it had no plans to seek a banking license and that it would rely on its own capital for loans.

Sign up for our Nearshore Americas newsletter:


Mexico and Brazil account for nearly half of Mercado Libre’s revenue. Consequently, the company has invested heavily in both markets over the past couple years.

Founded in 1999, Mercado Libre serves over 150 million users across major Latin American countries, including Chile, Colombia, the Dominican Republic, Panama and Peru, earning it a reputation as “the Amazon of Latin America.”

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

Add comment