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This fintech raised the bar and reduced commissions for online sellers

The growth of the fintech market does not stop. And before the appearance of greater competition, one of the great players decided not to rest on their laurels and launched new functions to seduce their customers.

Companies: always a step ahead

On this occasion, Mercado Pago, now allows online sellers to choose to receive money from their sales in 14 days or 30 days with a reduced rate or commission.

“This decision to reduce commissions responds to a need to include financially, through various solutions, more and more companies, businesses, and users. We work to provide flexibility to cover all the needs of those who use Mercado Pago. We seek to democratize the payments, adding more and more buyers and sellers to the ecosystem”, remarked Paula Arregui, Sr VP of Product of Mercado Pago.

What does this change mean?

“This change not only implies lowering the cost of the commissions, but also granting different options for the release period, now, whoever needs it, will be able to dispose of the money before, while those who wish to wait (30 days instead of 14) will be able to Pay less to process your digital payments with Mercado Pago”, he added.

For Arregui, “in an economy like our country’s, the most important thing is finding alternatives to the use of cash. Money on paper is expensive, insecure and obsolete, which is why we seek to expand financial inclusion with technological solutions”, he said.

On the other hand, with the objective of prioritizing the improvement of services for medium and small sellers, Mercado Pago announced the lowering of the 14-day rate, which will increase from 4.35% to 3.99%.

Likewise, the immediate crediting of the money pays a commission of 5.99%; while at 30 days it pays a rate of 2.99%.

“We believe that SMEs have to have the same collection and management tools for their finances as large companies”, added Arregui.

The online collection tools allow you to create payment buttons for websites, links to social networks or e-mails, and also QR codes.

Why is this ideal?

According to Fintech, these are ideal solutions for small sellers to receive payments from credit, debit and credit cards.

Arregui stressed that “although Mercado Pago has been in existence for more than 15 years, the last ones were without doubt the ones of the great Fintech explosion”.

“The launch of solutions such as Mercado Pago Point, payments with QR code and Mercado Crédito allowed us to grow exponentially.We aim to continue modernizing finances in Latin America and help achieve higher levels of financial inclusion through agile and easy digital solutions. use, leveraged in the penetration of mobile telephony”, he said.

The growth of smartphones also matters

In Argentina, there are around 45 million inhabitants and more than 60 million smartphones. The growth in the use of smartphones means that more and more services go through these devices.

In principle, the more than 100,000 SMEs that operate monthly with Mercado Pago will count from now with these new alternatives.

Once the funds are released, they can be used through the Mercado Pago virtual wallet to pay suppliers or in stores, recharge the SUBE card and cell phone, pay for services, or send money to other accounts of the platform; among other benefits without additional cost.

In addition, from Mercado Pago’s virtual wallet – available for free download at Google Play stores and App Store – you can manage transactions and know when funds will be available.

Also, while these funds remain in the account, users access the chance to invest in Mutual Funds of Investment (FCI) with significant returns.

Even users can verify if they qualify for immediate credit in order to boost their business.

The importance of security

From Mercado Pago they recalled that all these transactions are insured by the Seller Protection Program and have chargeback coverage.

According to Arregui, “having a professional flow management of funds and according to the needs of each vendor is a key step to achieve this goal, with inclusion as the ultimate goal and technology as a means”.

In the last four months of 2018, the Mercado Pago virtual wallet reached 2.4 million active users in the region.

“Our goal is to ensure that more and more people have access to products and services that guarantee real financial inclusion, as a company with entrepreneurial and Latin American DNA, our vision is inclusive not only for Argentina, but also for the entire region. The future is inclusive and friction-free, which is why, from Mercado Pago, we work with technology as an ally to develop tools such as this that promote the democratization of money in Latin America”, said Arregui.

Published inFintech
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