Mercado Pago, the financial arm of Latin American e-commerce leader Mercado Libre, announced plans on May 28, 2025, to seek a banking license from Argentina’s Central Bank.
The move aims to expand its digital financial services, including investment tools and credit lines, under a fully digital model. This strategy mirrors ongoing efforts in Brazil and Mexico, where the company has already established significant fintech operations.
The platform reported 64 million monthly active users across Latin America in Q1 2025, a 31% year-over-year increase, with Argentina being its most penetrated market.
Mercado Pago processed 11.3 billion transactions in 2024, up 20% from the previous year, and its credit portfolio surged 75% to $7.8 billion.
These figures reflect its dominance in a region where 99% of Argentine adults now access financial services, compared to 50% unbanked in 2017.
“We’re building the largest digital bank in Latin America,” said Juan Martín de la Serna, President of Mercado Libre Argentina. The company plans to create a new bank from scratch rather than acquire existing institutions, a process expected to take six months to two years.
Alejandro Melhem, Senior Vice President of Mercado Pago, emphasized the license would enhance products for underserved populations, including small businesses and rural users.
Argentina’s financial sector faces disruption as digital banks like Mercado Pago challenge traditional institutions. The top three digital platforms control nearly 90% of the market, driven by user-friendly interfaces and rapid rural adoption.
Mercado Libre’s push aligns with President Javier Milei’s economic reforms, which prioritize deregulation and competition. The fintech’s growth coincides with stabilizing macroeconomic conditions in Argentina, attracting investor confidence.
With 35 million digital accounts locally and billions of pesos transacted monthly, Mercado Pago’s expansion could further reshape financial inclusion in a region where mobile wallets outpace global adoption rates.