Mercado Pago: Digital Payment Solution in Latin America

Mercado Pago is one of the most popular digital payment platforms in Latin America, serving countries like Brazil, Mexico, Chile, and Peru. Originally created as the payments arm of Mercado Libre, a popular e-commerce platform in the region, Mercado Pago has evolved into a comprehensive financial solution that offers a variety of services, including online payments, mobile wallets, point-of-sale systems (POS systems), and financial lending.

What Is Mercado Pago?

Mercado Pago is a versatile payment platform designed for customers and merchants in Latin America. The platform supports online payments, in-person transactions, and money transfers using various methods, such as credit cards, debit cards, bank transfers, and digital wallets. As an integrated financial service, it allows users to make purchases on Mercado Libre and other e-commerce websites, pay utility bills, and even split payments with friends or colleagues.

Mercado Pago also offers solutions for businesses, including point-of-sale systems, QR code payments, and tools to accept payments online. Its widespread adoption in Brazil, Mexico, Chile, and Peru makes it a key player in promoting financial inclusion across the region. In 2023, Mercado Pago facilitated over 9.5 billion payment transactions— a 73% increase from the year before — and processed about US$135.6 billion in payments to businesses other than those featured on its online marketplace.

Mercado Pago grew alongside the rapid growth of e-commerce in the region, fulfilling buyer and sellers' appetite for a secure and convenient way to make and receive payments online. In 2024, Mercado Pago reported net revenue of $2.2 billion in the third quarter and a 35% year-on-year increase in monthly active users to 56 million across the region, mostly from Brazil. One of the key factors of its success is its commitment to innovation, regularly rolling out new features tailored to meet the needs of the Latin American market.

Key features of Mercado Pago

1. Digital wallet

Mercado Pago offers a mobile wallet, which allows users to store funds, make purchases, and transfer money easily. It is compatible with smartphones, making it accessible to millions of people in regions where mobile penetration is high.

2. Click link to pay

Mercado Pago offers payment links so that merchants can use this online payment service without performing web or mobile integrations. Merchants can create a payment link and share it via chat or social media. Customers simply need to click the link to be directed to the payment page.

3. QR code payments

Another feature of Mercado Pago is its QR code payment system. This allows customers to scan a QR code with the Mercado Pago app to complete transactions quickly in online or physical stores, or even informal vendors.

4. Point-of-sale (POS) system for merchants

Merchants can use Mercado Pago's point-of-sale solutions to accept payments via credit cards, debit cards, and digital wallet transactions. The system includes portable card readers that connect to smartphones or tablets.

5. Buy Now, Pay Later (BNPL)

Mercado Pago offers financing options, allowing consumers to pay in instalments or defer payment dates. The Buy Now, Pay Later (BNPL) feature is called Mercado Credits, and it allows customers to pay for a product or service in one, three, six, nine, or twelve instalments. Mercado Credits has a customer base of over 12 million people. This feature is especially appealing to customers in Brazil, Mexico, Chile, and Peru, where instalment payments are a common method of making large purchases.

6. Payment integration for businesses

Businesses can integrate Mercado Pago directly into their websites or e-commerce platforms, enabling smooth and secure payment processing for their customers. It supports web integration, as well as mobile integration for apps on Android and iOS devices.

Mercado Pago's integrated payment solutions for merchants include:

• Checkout Pro — automatic redirection to the MErcado Pago website or app for one-click payments, guest users, and payments split between two cards
• Checkout Bricks— UI modules that can be used on their own or put together for a custom payment solution. Types of Bricks (modules) include card payment, Mercado Pago wallet integration, purchase summary, and more.
• Subscriptions— automatic collection of recurring payments
• Checkout API — API for merchants to embed the entire payment process on their own platform

7. Utility payments

Users can pay for utility bills, taxes, and other recurring expenses directly from their digital wallets or bank accounts via Mercado Pago.

Benefits of using Mercado Pago

For consumers

• Ease of use: With its user-friendly app and wide compatibility, Mercado Pago makes shopping, paying bills, and transferring money convenient.
• Security: Transactions are secured with encryption and two-factor authentication, promoting safe payments.
• Accessibility:Available across multiple countries, Mercado Pago supports local currencies like the Brazilian Real (BRL), Mexican Peso (MXN), Chilean Peso (CLP), and Peruvian Sol (PEN).

For businesses

• Wider customer reach:By accepting Mercado Pago, businesses can attract millions of users who are familiar with the platform.
• Streamlined operations: From QR code payments to point-of-sale systems, Mercado Pago simplifies payment processing for merchants.
• Flexibility: Businesses can offer instalment payments or alternative payment methods to increase sales.

How Mercado Pago works

For consumers:

1. Download the app: Mercado Pago is available for Android and iOS devices.
2. Link payment methods: Users can add credit cards, debit cards, or transfer funds to their digital wallet.
3. Make payments: Whether shopping online, paying bills, or scanning a QR code, payments can be completed quickly and securely.

For merchants:

1. Sign up as a merchant by registering your business on Mercado Pago's website.
2. Choose payment solutions: Select options like QR code payment or point-of-sale card readers.
3. Start accepting payments: Install and use the required systems to receive payments from Mercado Pago users.

Offer a versatile payment experience with Mercado Pago

Mercado Pago is a versatile and reliable digital payment method that has transformed commerce in Brazil, Mexico, Chile, and Peru. By offering a range of payment solutions for consumers and businesses, including QR codes, digital wallets, and point-of-sale systems, Mercado Pago has promoted financial inclusion and streamlined transactions across Latin America.

Start accepting payments via Mercado Pago by using a payment gateway like Antom. With our deep market expertise, extensive partnerships network, and comprehensive payment technologies, Antom is the preferred payment partner of leading brands around the world – helping businesses boost revenue and support your market expansion. Contact usto learn how you can offer Mercado Pago and other payment methods around the world.