Mercado Pago enters talks with regulators for banking licence in Mexico
Mercado Pago, the online payments subsidiary of MercadoLibre, is in talks with the National Banking and Securities Commission (CNBV) in Mexico as it looks to apply for a Multiple Banking Institution (MBI) licence.
Mercado Pago to apply for MBI licence
Initially founded in 2003 to facilitate payments for MercadoLibre’s online marketplace, Mercado Pago has operated as an Electronic Payment Funds Institution (IFPE) for over two years.
During this period, the subsidiary has worked to position itself as a comprehensive financial services provider, broadening its offering to include debit and credit cards, remittance deposits, insurance products and loans for both consumers and SMEs.
“Today we offer services similar to those of traditional banks in a digital, inclusive, and efficient manner,” comments Mercado Pago GM, Pedro Rivas.
“Our millions of users see us as their digital bank. Now we want to formalise this and become the largest 100% digital bank in Mexico.”
Mercado Pago confirms that “meetings with regulators have already commenced”, with the formal submission of its MBI application to take place “in the coming months”.
“We were born with the mission of democratising financial services, and while we’ve made progress, we want to evolve to have a greater impact on Mexico’s digital banking system,” adds Rivas.
In comments made to Bloomberg, Osvaldo Gimenez, president of Mercado Pago, says he expects the process to take between 12 and 24 months, and revealed that the subsidiary has opted to pursue the traditional route of applying for a banking licence rather than buying one.
