According to a Reuters report, Latin American e-commerce and fintech firm MercadoLibre Inc is in talks with WhatsApp, the popular instant messaging se
According to a Reuters report, Latin American e-commerce and fintech firm MercadoLibre Inc is in talks with WhatsApp, the popular instant messaging service, to enable business messaging payments.
MercadoLibre, which allows businesses to accept payments through its app and website, is looking to increase its presence in capital cities across Latin America, while taking advantage of WhatsApp’s 1.2 billion monthly active users. As of August 2019, the app is being used by more than 110 million people in the region.
The two firms are engaged in discussions that would allow businesses with WhatsApp pages to accept payments from customers via the messaging service’s app. This would be a significant step forward for MercadoLibre, which already has over 3 million registered merchants in Latin America.
The popularity of the app has only grown since the launch of the WhatsApp Business app in 2018, which allows businesses to create their own pages on the platform and create a more direct customer relationship. MercadoLibre hopes to take advantage of this feature to expand its reach and draw customers to merchants.
The discussions come as both companies have seen an increase in ecommerce and digital payments due to the pandemic. MercadoLibre saw its sales surge over 80% in the second quarter of this year, while WhatsApp has seen its active user base grow.
There is no official confirmation from either company regarding the talks. However, this could be a major development in terms of digital payments in Latin America and could open up new opportunities for both private businesses and consumers in the region.
MercadoLibre in Talks with WhatsApp for Business Messaging Payments
Reuters recently reported that Latin American e-commerce and fintech firm MercadoLibre is in talks with WhatsApp to collaborate on business messaging payment services.
As Latin America’s largest e-commerce and fintech platform, MercadoLibre has ambitions to expand its services regionally and beyond. This collaboration with WhatsApp could be part of that process, as it looks to add another business messaging payment option to its roster.
What Can We Expect?
According to Reuters, the talks between MercadoLibre and WhatsApp are focused on utilizing the Facebook-owned messaging platform to offer business messaging payment services. It is thought that this could potentially be an option offered to merchants and businesses in the Latin American region who otherwise do not have access to such features.
The collaboration would be beneficial for both parties involved. WhatsApp would have access to a larger market of business users in the Latin American region and MercadoLibre could extend its services beyond just e-commerce and into more of a payment platform.
What Else Does MercadoLibre Offer?
MercadoLibre currently has a large range of services and products available across the Latin American region, from retail items to digital payments, with more than 40 million users actively using the platform in over 6 countries.
The fintech platform also offers some of the following services:
- Payment solutions – allowing customers and merchants to make payments online with a variety of payment options such as debit card, PayPal, and pre-paid cards.
- E-wallet – a secure digital wallet that customers can use to store digital assets such as bitcoin and other cryptocurrencies
- Online banking – providing customers with access to a range of banking services including banking transfers, bill payments, and money transfers.
MercadoLibre also provides its customers with a loyalty program and rewards program, where they can earn points and discounts for making purchases or completing transactions on the platform.
The collaboration between MercadoLibre and WhatsApp is an exciting opportunity for both companies to expand their services beyond their current offerings. By offering business messaging payment services, it could open up new possibilities for customers and merchants in the Latin American region. It will be interesting to see how this collaboration might unfold in the coming months.