MercadoLibre’s Fintech Arm Seeks Banking License in Mexico

MEXICO CITY (Reuters) – Latin American e-commerce giant MercadoLibre (NASDAQ:MELI)‘s fintech arm, Mercado Pago, has submitted its request for a banking license to the Mexican regulator, the unit said on Wednesday.

The application to the National Banking and Securities Commission (CNBV) was sent earlier this month, Mercado Pago stated.

In May, Mercado Pago expressed its ambition to become the largest digital bank in the country with the license.

“This will allow us to continue innovating and broadening our financial services, which millions of people need,” said Pedro Rivas, Mercado Pago’s head in Mexico.

The license would enable Mercado Pago to provide local services such as savings and checking accounts, certificates of deposit, commercial loans, and mortgages.

In Mexico, Mercado Pago ranks as the second-largest digital wallet. It currently offers credit and debit cards, international transfers, interest on funds stored in its digital wallet, as well as personal and small-business loans.