MercadoLibre secures $250 million financing from JPMorgan to expand fintech's credit profile in Mexico (updated)

MercadoLibre

18/09/2024 18:55

(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
)
 ((Brendan.OBoyle@thomsonreuters.com;))