Free Market: Most Valuable Company in Latin America
The most valuable company in Latin America is Mercado Libre, with a valuation of US$95,000 million, exceeding Petrobras (US$88,000 M). However, its offerings differ across countries. In Brazil and Mexico, its main markets, Mercado Libre accounts for 55% and 23% of its turnover respectively.
Mercado Pago: Services Reaching the Country
Mercado Pago has not yet launched all its fintech services in Argentina, but plans to do so in the future.
1. Credit Cards:
Mercado Pago already offers credit and debit cards in Mexico and Brazil, partnering with Mastercard and Visa. In Mexico, users can also enjoy interest-free installments on selected Mercado Libre products.
2. Cryptocurrency:
Available in Mexico, Brazil, and Chile, users can buy, sell, transfer, and receive Bitcoin, Ethereum, and USDC. The service is free, with monthly purchase limits.
3. Investments in Bonds:
Brazilians can invest in Bank Certificates of Deposit, a fixed income instrument, through Mercado Pago.
Mercado Libre: Services Coming to the Country
Mercado Libre is continuously expanding its logistics network and has plans to offer:
1. Air Logistics:
Mercado Libre already owns its own fleet in Mexico and Brazil, enabling fast and efficient deliveries.
2. Sustainable Distribution:
Mercado Libre has 2,321 electric vehicles and has delivered over 22 million packages in Brazil, Mexico, Colombia, Chile, Uruguay, and Argentina.
3. Cross-border Trade:
Since 2021, Mercado Libre has enabled buying and selling products in the USA for Mexico, Brazil, Chile, and Colombia.
Reasons for Limited Service Availability in Argentina
Mercado Libre faces several challenges in entering the Argentine market:
Mature Market: Argentina has a mature digital market with 15% penetration.
Lack of Infrastructure: Limited access to air storage and frequencies hinders air logistics.
* Regulatory Barriers: Strict regulations and complex customs codes pose significant hurdles for cross-border trade.
Conclusion
Mercado Libre’s expansion into Argentina is hampered by various factors, but the company remains optimistic about the future, anticipating greater opportunities with market deregulation.