Mercado Pago expands its investments and aims to compete with fixed-term deposits

Mercado Pago expanded its investment offer with the launch of two new mutual funds aimed at different user profiles. The fintech seeks to strengthen its presence in the financial market and attract those looking for higher yield alternatives.

The initiative comes in a context of growth in digital investments and a reduced role for fixed-term deposits. With minimum amounts starting at $100, the new instruments will be available directly from the app.

What are the new investment funds from Mercado Pago

The platform has added two options for those who wish to diversify their savings within Mercado Pago.

• Bonds, fixed terms, and more: a fixed income fund aimed at conservative profiles.

• Argentinian Companies: an equity fund focused on local stocks for investors with a higher risk tolerance.

Both products can be operated from the app with a minimum investment of $100 and no additional costs.

Unlike the Money Market funds already offered by the fintech, the invested money will be available for redemption within one business day.

What Mercado Pago said about the launch

Tomás Azzali, Senior Director of Mercado Pago, explained that there is a growing demand for more advanced investment alternatives.

"We see that half of the users say they are willing to take a step further into the world of investments. For that, it is important to offer a simple, accessible product that can be used from $100, with no additional costs," he noted.

Regarding the fixed income fund, he emphasized that it is designed for those looking to improve the yield of their savings without taking on high risks.

"The fixed income fund is aimed at a conservative profile that seeks a bit more return but is not willing to take on too much risk," he stated.

How fixed income and equity funds work

The Bonds, fixed terms, and more fund targets users with medium-term savings goals who seek an alternative with greater liquidity than a traditional fixed term.

As Azzali explained, this instrument can be useful for those saving for vacations, major purchases, or specific projects.

On the other hand, the Argentinian Companies fund invests in stocks included in the Rofex 20 index and is aimed at investors with financial experience and long-term horizons.

"The equity fund is aimed at more advanced users, who understand that the portfolio can vary in the short term and who have a longer investment horizon," he said.

Why Mercado Pago is betting on investments

The fintech arrives at this launch after consolidating the growth of Money Market funds within its ecosystem.

According to data presented by the company, there are currently nearly 29 million people generating returns through Money Market funds linked to digital wallets, compared to 2.8 million fixed-term users.

Additionally, a survey conducted by Mercado Pago revealed that 72% of users have never invested in fixed or variable income funds, while only three out of ten have used such instruments.

However, the growth potential is high: 50% of respondents stated they are willing to try new alternatives to improve the yield of their savings.