MICROCAPITAL BRIEF: MercadoLibre, PayPal Linking Mercado Pago Payment System, PayPal Merchants to Expand Online Payment Options for 348m Customers, Particularly in Brazil, Mexico

MercadoLibre, an Argentina-based platform for online sales and payments in 18 countries in Latin America and the Caribbean, recently entered into a cross-platform agreement with US-based payments firm PayPal. This will allow: (1) MercadoLibre sellers in Brazil and Mexico to accept money from 300 million PayPal customers in about 200 countries via MercadoLibre’s Mercado Pago service; (2) PayPal merchants to accept payments from 48 million Mercado Pago users in Brazil and Mexico; and (3) Mercado Pago users to receive remittances via PayPal’s Xoom service.

PayPal CEO Dan Schulman said both companies “want to help businesses compete globally and offer innovative financial solutions to help people who are underserved by the traditional financial system.”

During the third quarter of 2019, PayPal earned revenue of USD 4.4 billion on transaction volume of USD 179 billion. During the same quarter, the MercadoLibre marketplace hosted 243 listings, and its Mercado Pago product handled transactions totaling USD 7.6 billion.

During March 2019, PayPal agreed to purchase a block of shares of MercadoLibre for USD 750 million. Both companies are traded on the US-based NASDAQ stock exchange.

Sources and Additional Resources

LinkedIn article
https://www.linkedin.com/pulse/paypal-signs-commercial-agreement-mercadolibre-dan-schulman/

MercadoLibre homepage
http://www.mercadolibre.com/

MercadoLibre investor data
http://investor.mercadolibre.com/

PayPal homepage
https://www.paypal.com/

PayPal financials
https://investor.paypal-corp.com/

Additional MicroCapital coverage on Brazil
https://www.microcapital.org/?s=Brazil

Additional MicroCapital coverage on Mexico
https://www.microcapital.org/?s=Mexico

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