MercadoLibre secures $250 million financing from JPMorgan to expand fintech's credit profile in Mexico
Adds context, details
MEXICO CITY, Sept 18 (Reuters) -Latin American e-commerce giant MercadoLibre MELI.O announced on Wednesday that it signed a $250 million financing deal with JPMorgan JPM.N aimed at expanding its fintech arm Mercado Pago's credit profile in Mexico.
WHY IT'S IMPORTANT
MercadoLibre said the financing deal will strengthen its commitment to Mexican small and medium-sized businesses, allowing the firm to reinvest and finance more businesses and individuals in the coming years.
KEY QUOTE
"This alliance not only confirms the trust of one of the world's major financial companies in what we do within MercadoLibre for the Latin American economy, but it allows us to reaffirm our commitment to the millions of people in Mexico who are seeking a boost to improve their financial life," said Facundo Cuppi, Mercado Pago's regional Director of Strategy and Operations.
CONTEXT
Mercado Pago has seen rapid growth in Latin America, particularly in Mexico where cash is still king.
Despite lagging behind Brazil on the digitalization front, the fintech has seen adoption of its mobile credit-card readers more than double, the fintech has seen adoption of its mobile credit-card readers more than double in the past year, competing with traditional banks and other digital payment platforms.
BY THE NUMBERS
At the end of the second quarter of 2024, Mercado Pago's loan portfolio in Mexico reached $1.5 billion, MercadoLibre said.
WHAT'S NEXT
Mercado Pago in currently seeking a banking license in Mexico. Securing this would enable the firm to provide services like savings and checking accounts, commercial loans, and mortgages.
Reporting by Diego Ore; Writing by Brendan O'Boyle; Editing by Gabriel Araujo and Aurora Ellis
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