Mercado Pago, Mercado Libre's fintech arm, has announced major expansion plans in Chile following a year of remarkable growth. The company intends to launch a credit card by mid-2026 and broaden its consumer credit offerings. This strategy solidifies its position as a formidable challenger to the nation's traditional financial institutions.
A Year of Unprecedented Growth
Matías Spagui, Mercado Pago's Senior Director in Chile, called 2025 a spectacular year of consolidation. A key achievement was migrating the Redelcom merchant network, which expanded tenfold to over 130,000 businesses. This move establishes the company's presence in both e-commerce and physical retail payment sectors.
The company's digital account and prepaid card also experienced explosive adoption, positioning it as a market leader. According to regulatory data, seven of ten Chileans with a prepaid card use Mercado Pago's product. With 2.8 million active cards, the fintech has rapidly become a significant financial player.
Beyond payments, Mercado Pago drove innovation with its "Haz crecer tu dinero" investment feature, developed with Banco Bice. This product, offering users returns on their balances, has attracted 2.2 million customers. Spagui noted this initiative successfully spurred greater competition within a market dominated by traditional banks.
Charting a Course for Market Leadership
Looking ahead, Mercado Pago aims to surpass incumbents like the state-owned BancoEstado. Spagui argues the distinction between prepaid and debit cards is becoming irrelevant to consumers. He believes Mercado Pago's integrated value proposition of payments, investments, and credit will attract users from traditional accounts.
The company's strategy is not just issuing cards but building a comprehensive financial ecosystem. This approach includes services like bill payments, cryptocurrency purchasing, and integrated public transport payments. The goal is to become the primary financial hub for its users, outperforming competitors across multiple fronts.
Strategic Product Launches on the Horizon
A cornerstone of the 2026 strategy is the planned launch of a credit card, slated for mid-year. The company has already applied to Chile's Financial Market Commission (CMF) for the necessary license extension. This move will place Mercado Pago in direct competition with the country's established banks.
The new credit card will be deeply integrated with the Mercado Libre e-commerce platform, offering unique benefits to users. Furthermore, the company aims to expand credit access for underserved populations by leveraging its data. This is complemented by plans to extend its popular "buy now, pay later" loans.
A Call for Faster Regulatory Innovation
Despite its rapid growth, the company has no immediate plans to seek a full banking license in Chile. Spagui explained its current regulatory framework is sufficient for its business objectives, unlike in other regional markets. A future application would only be considered if the company's scale made it essential.
Spagui expressed concern over the proposed one-year delay in implementing Chile's open finance system. He warned that Chile is falling behind regional peers like Brazil and Mexico, which have embraced similar innovations. He stressed an open system is crucial for fostering competition and expanding credit access.
Mercado Pago's ambitious roadmap for Chile underscores its commitment to disrupting the country's financial landscape. By combining rapid user acquisition with strategic product launches, the company is poised for continued growth. Its success will depend on executing this vision while navigating a regulatory environment it views as lagging.