MercadoLibre’s fintech arm applies for banking license in Mexico

MEXICO CITY : Latin American e-commerce giant MercadoLibre’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 said in a statement.
In May, Mercado Pago said it aimed 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,” Mercado Pago’s Mexico head, Pedro Rivas, said in the statement.
The license would give Mercado Pago the ability to locally provide services such as savings and checking accounts, certificates of deposit, commercial loans and mortgages.
In Mexico, Mercado Pago is the second-largest digital wallet, it said. 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.