Mercado Pago: "We're halfway through the banking license process."

Mercado Pago México is on schedule with its banking license application process, which began in September 2024. Pedro Rivas, the institution's general manager in the country, says they are halfway there.

In an interview with El Economista, he commented that from day one they knew it was a process involving many steps, and one that required coordination with the regulator and other external auditors.

However, he points out that they are on schedule.

"We've already submitted the application, we've received the initial comments from the regulator, we're addressing those comments, and there's a validation process in progress, in which we're still presenting to the authority what we want to do, how we want to do it. They're showing us what they want us to change, strengthen, and so on," he says.

He adds: "It's a natural process that everyone who has gone through this license, or obtained it, has had to go through. So we're halfway there."

The director of Mercado Pago in Mexico comments that while the entity has an estimate for resolving this issue, it will depend on the regulator's timing, but he believes that "the sooner we do it, the better."

Each of the parts does its job

Pedro Rivas emphasizes that the response and reception from the authorities in this process has been positive, and each party is doing its part.

"The regulator is ensuring that if there's any risk in the operation, it's identified and mitigated; and for our part, we're trying to move as quickly as possible so we can focus on serving the market. So everyone does their job," he argues.

He emphasizes that Mercado Pago, in seeking to become a bank in Mexico, is in the process of ensuring that it complies with everything the regulator requires.

Reasons to seek to become a bank

Pedro Rivas explains that the main reasons for seeking to become a bank (currently operating in the country as a regulated Electronic Payment Fund Institution, IFPE) are the stability and security provided by the sector's regulations, as well as the opportunity to expand its product and service offerings.

"For example, today we can't collect funds; today we can't do payroll portability. So we know it's important for people who are receiving some kind of steady income to begin accessing that money through the bank where they receive their paycheck. Today we don't have the capacity to do that; that will open up new horizons for us," he emphasizes.

The executive believes that for these and other reasons, it's a good step to move in that direction and ensure that they always have a role in important decisions regarding the future of financial services in Mexico.