Mercado Libre expands in the region: Acquired a payment processing company in Chile

RIO DE JANEIRO, BRAZIL – Argentinean Mercado Libre continues to expand in the region and yesterday took another step to accelerate its presence in Chile. The company founded by Marcos Galperin announced the acquisition of Redelcom, a Chilean company operating since 2010 as a payment service provider. In October 2019, began offering point-of-sale (POS) terminals to retailers. The amount of the transaction was not disclosed.

“Mercado Libre seeks to consolidate its value proposition in Chile and enhance the growth of its multiple payment tools and digital financial solutions,” said the statement the company sent to its shareholders.

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Mercado Libre, through Mercado Pago, is a relevant player in the POS market in different countries in the region, where it sold more than one million terminals during the third quarter of 2021. “Chile has presented a significant growth in the region, and this has led the company to seek alternatives to enhance the offer for SMEs and companies that operate with Mercado Libre,” the company said.

“Redelcom has the best product in the market and, leveraging the experience of the Mercado Libre ecosystem; we will continue to consolidate financial services in Chile. Redelcom is a company in tune to democratize commerce and achieve financial inclusion. Ninety-nine percent of its customers are SMEs and micro-entrepreneurs, and they will continue to receive the same quality of service,” said Matías Spagui, director of Mercado Pago.

Redelcom’s POS accepts payments with all credit and debit cards from any national and international bank. In addition, it provides merchants with tools to facilitate their money management, such as an electronic receipt issuing system linked to the Internal Revenue Service and the cash register control system, which provides merchants with a detailed statement of their financial flow. Also, the POS offers services such as bill payment and cell phone recharges, among others.

“We are very pleased to be part of Mercado Libre, a leader in e-commerce and digital payments in the region. We believe this is a great opportunity to expand the technological solutions offered to our customers throughout Chile, adding the products and distribution strength of Mercado Libre and Mercado Pago,” said Redelcom’s general manager, Roberto Charme.

The acquisition of Redelcom reinforces Mercado Libre’s ecosystem, which offers different alternatives to SMEs and companies through its marketplace platform and its fintech Mercado Pago. More than 32,000 SMEs and entrepreneurs currently sell on Mercado Libre, and almost half of them joined amid the pandemic. On the other hand, Mercado Pago has made its digital payment tools available to merchants. Currently, more than 65,000 merchants process their payments with the company, of which more than 55,000 joined during the pandemic.

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