Mercado Libre
As the leading e-commerce platform in Latin America, Mercado Libre recognized the need for a technology partner to support its card issuance strategy across multiple markets, including credit, debit, and prepaid cards. The partnership initially started in Mexico and later expanded to Chile. Thanks to its recognized expertise and technological capabilities, Evertec emerged as the ideal ally for this endeavor. Together, they implemented advanced systems that adhered to stringent security and efficiency standards while maintaining the necessary agility to adapt to market dynamics.
Pioneering
Card Solutions
In 2019, Mercado Libre began its ambitious venture into the card market, selecting Evertec as its strategic partner to facilitate the launch. This collaboration led to the successful introduction of a Mastercard-branded, fully digital debit card in 2020. A standout innovation was the QR code-based activation system.
Following the success in Mexico and with support from Evertec’s specialized team, Mercado Libre expanded into Chile’s prepaid card market the following year. This product, linked to a digital account, quickly gained popularity and earned recognition from Chile’s Financial Market Commission (CMF) as the leading non-bank issuer of payment solutions.
Building on the success of its debit card in Mexico, Mercado Libre launched a credit card in collaboration with Visa as part of its second phase.
The Regional Challenge:
Scaling Payment Solutions
The success of debit cards in Mexico has allowed Mercado Libre to address the complexities of launching regional payment products. Expanding into the prepaid card market in Chile required adapting to diverse market dynamics and local regulatory requirements. With Evertec’s expertise, this regional rollout was executed seamlessly, ensuring compliance and effectively addressing local needs.
A significant challenge was continuously refining the technological platform to provide optimal user experiences and facilitate efficient transactions. Evertec tackled this by making ongoing adjustments and optimizations, ensuring the platform evolved in response to market demands. Strong communication between the two companies was crucial in meeting client needs.
The launch of credit cards in 2022 added another layer of complexity, necessitating Evertec’s integration of advanced systems for processing, back-office operations, and credit core management. Supported by PayStudio, Evertec delivered the project on time, ensuring the system’s full functionality.
Collaboration with Visa was also essential for the credit card launch. Evertec played a key role in facilitating this strategic partnership, which enhanced Mercado Libre’s financial product offerings and reinforced its position in the regional market. The successful launch in Mexico marked a significant milestone in Mercado Libre’s expansion.
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Early Results:
Debit Card Success
The combined efforts of both teams have led to remarkable success for the debit card in Mexico. Mercado Libre has issued over 8 million debit cards, which manage an average of 10 million monthly transactions. This substantial volume reflects the market’s confidence in the efficiency of the services and solutions provided.
Credit Card Impact
Since its launch, the credit card service has experienced significant growth, with over 1.7 million accounts and more than 3 million cards issued. These cards have facilitated over 8.4 million transactions, highlighting Evertec’s effectiveness in managing financial services.
Prepaid Card
Success in Chile
In Chile, the introduction of prepaid cards has also been successful, with more than 1.1 million cards issued since their launch in 2022. These cards process over 2 million transactions monthly, showcasing Evertec’s ability to meet market demands with innovative and efficient payment solutions.
A Model for Future Success
This success story highlights the transformative impact of fintech in Latin America, establishing a foundation for future collaborations and advancements within the sector. The ongoing innovation and adaptability of Evertec and Mercado Libre have solidified their leadership roles in the electronic payment revolution and in promoting financial inclusion throughout the region.
Mercado Libre challenged us to push our limits at every turn. In their fast-paced environment, speed of response is crucial. This client embraces a high level of risk and continually questions the status quo. We rose to the challenge, delivering agility and efficiency in meeting their demands.