The company said it began testing the unit a year ago and now has more than 4 million users enabled for wholesale purchases, Reuters reported Monday (Sept. 22).
This move expands Mercado Libre’s business beyond the consumer market it has traditionally served, according to the report.
Mercado Libre said in an Aug. 4 press release that it offers technology solutions that enable eCommerce and digital financial services and that it is active in 18 countries.
The company’s eCommerce platform brings together buyers and sellers in Latin America, while its FinTech platform offers services to merchants and individuals within its eCommerce platform and outside it as well, according to the release.
Mercado Libre said in an Aug. 4 earnings release that it saw double-digit revenue growth in the second quarter, with its revenue rising 34% year over year to reach $6.8 billion and both its commerce and its FinTech businesses maintaining “strong momentum and growth rates.”
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“Our disciplined investments and consistent execution continue to strengthen our leadership in eCommerce, FinTech and digital advertising across Latin America,” Mercado Libre Chief Financial Officer Martin de los Santos said in the release. “Highlights this quarter included the expansion of our free shipping program in Brazil, high-impact marketing campaigns for Mercado Pago, and the integration with Google Ad Manager to broaden our reach among advertisers.”
In May, the company’s FinTech unit, Mercado Pago, said it planned to apply for a banking license in Argentina to expand the service offering of its digital model in the country to include more investment tools and new lines of credit.
The company said that it has pursued this strategy in Brazil and Mexico and that is has already facilitated the economic development of individuals and small businesses in Argentina with its current offering in that country.
On Sept. 12, it was reported the Mexico’s antitrust watchdog Cofece found that Mercado Libre and Amazon create barriers to competition for sellers on their platforms but that it will not order corrective measures because it was uncertain if consumers and small businesses would benefit from it doing so.
