Mercado Libre will build the largest digital bank in the country

In a move that shakes the financial system, Mercado Libre officially announced that it will apply for a banking license from the Central Bank of the Argentine Republic (BCRA) to turn its fintech arm, Mercado Pago, into the country's largest digital bank. The measure, confirmed by company sources, marks a turning point in the battle for the future of money in Argentina and consolidates a regional strategy that is already advancing in countries such as Brazil and Mexico.

The application will be submitted in the coming days and, although the process usually takes up to two years, the financial sector doesn't rule out that the timeline could be shortened, given the close relationship between Mercado Libre's founder, Marcos Galperin, and President Javier Milei. Both share a vision for the country based on deregulation, genuine competition, and individual freedom as engines of progress.

"We are building the largest digital bank in Latin America. In a region that still faces challenges in accessing quality services, we want to change the way users interact with the financial system with a digital bank where everyone wins," said Juan Martín de la Serna, President of Mercado Libre Argentina.

The company had already registered the trademark "Mercado Banco" with the National Institute of Industrial Property (INPI), although it will continue to use the name Mercado Pago commercially. Company representatives state that the banking license will allow them "to continue improving services, create more investment tools, and develop new lines of credit within its 100% digital model."

Alejandro Melhem, Senior Vice President of Mercado Pago for Hispanic America, was clear:  "The application for this new license is a natural step to offer more products and continue improving the user experience. This doesn't imply a change in our strategy, but allows us to continue developing a simple financial ecosystem that benefits everyone. We will continue to grow to become the largest digital bank in the region."

Melhem also highlighted the social impact of this technological evolution: "Mercado Pago democratized access to finance in Argentina, allowing people who were historically excluded to now save, collect, pay, invest, and obtain loans from our digital account. This has had a direct impact on the economic development of individuals and SMEs in every corner of the country."

The announcement comes amid a tense dispute with traditional banks, which are resisting giving up ground to the advance of fintech. Since 2023, Mercado Libre and Modo—the digital wallet of public and private banks—have been engaged in a high-stakes legal battle. Modo filed a complaint against Mercado Pago with the National Commission for the Defense of Competition (CNDC) for "abuse of dominant position." However, the response was swift: in August, Mercado Libre countered with a complaint against Modo for "cartelization."

"The banks are illegally concentrating in MODO, and they never notified or requested authorization from the CNDC to operate jointly," company representatives stated, pointing to a possible violation of the Competition Defense Law.

The background is both economic and strategic: the traditional banking system manages deposits of more than $65 trillion, while virtual wallets—led by Mercado Pago—move about $3.5 trillion and continue to grow. The fintech is already involved in the payment of social welfare plans and seeks to expand into pensions and salaries, something that will now be legally feasible by acquiring regulated bank status.

In this context, Marcos Galperin's departure from the CEO position—announced last week—doesn't imply retirement, but rather a strategic reconfiguration of leadership. With a fortune estimated at USD 9.8 billion according to Forbes, the country's richest businessman is preparing for a new chapter in the development of the Latin American digital ecosystem, now with the support of a government that is unafraid of innovation or disruption.