The Leading Commerce and Fintech Ecosystem in Latin America

We see a huge runway for growth as Mercado Libre leads the shift from offline to online retail by delivering an ever-improving value proposition. Ecommerce penetration in Latin America is currently at mid-teens percentage levels of total retail, trending almost a decade behind the U.S. Third-party forecasts point to the market growing by 54% from $151 billion in 2023 to $232 billion by 2028

Our huge audience and rich first-party data mean we are uniquely placed to capitalize on structural changes taking place in the advertising industry. We are the leading platform in Latin America's Retail Media market, which is projected to more than double to $6bn by 2029. At this point, penetration over total digital advertising would still only be mid-teens vs. the 22% global average (2025).

Financial inclusion in Mexico is more than a decade behind Brazil, with just half of the population having a bank account and less than a fifth having a credit card. In Brazil, there is still more disruption to take place, with four incumbent banks accounting for 59% of credit operations and approximately $200 billion parked in low-yielding "poupança" accounts. In Argentina, the loans-to-GDP ratio is less than 10% vs. more than 50% in Brazil. Mercado Pago is well placed to disrupt this scenario as a leading fintech by MAUs in Brazil, Mexico, Argentina and Chile

Mercado Pago is the largest fintech acquirer in Latin America by TPV. Our market share is low, and we see huge opportunities to attract and retain new merchants. We are well-positioned to differentiate our payments processing services by leveraging our ecosystem to offer loans and software solutions that help merchants manage their businesses

The secular growth trends that we are exploring present us with huge opportunities that are bigger than short-term macro and FX volatility. Over the last five years, investors in Mercado Libre have achieved a total shareholder return similar to the Magnificent 7. We encourage investors to focus on the long-term opportunities, not the short-term macro backdrop. (source: Bloomberg)