The Latin American horizontal MarcadoLibre has reportedly been given permission to act as a financial institution in Brazil, a privilege which will allow the Buenos Aires headquartered company to greatly expand the range of financial services it offers in the country.
Financial services is a market that MercadoLibre has made no secret about wanting to get into. The opportunity to provide small business loans to its vendors is clearly a big one, and the company recently received financial backing from Goldman Sachs to fund its ‘MercadoPago’ financial services offering in Brazil, a market that accounts for some 60% of its revenues.
The latest news is a shot in the arm for MercadoLibre and another step away from a pure pay-to-advertise model in a country which has been earmarked by management as one with massive growth potential despite rivals OLX sewing up the purchase of Grupo ZAP earlier in the month. The VP of MercadoPago Tulio Oliveira said of the authorization: “Thanks to this authorization, the company will have more autonomy to formulate financial and credit products and services.”