Is MercadoLibre's Fintech User Base Set to Keep Climbing in 2025?

MercadoLibre’s MELI fintech arm, Mercado Pago, continues to play an important role in supporting the company’s overall growth. The business is scaling profitably with a low-cost-to-serve model, as users who deposit funds tend to stay longer, use more financial products and shop more often on the marketplace. This has been helping drive stronger engagement across the platform and improving overall performance, reflected by growing monthly active users (MAU). In the first quarter of 2025, fintech revenues reached $1.49 billion, contributing 34.4% of total revenues and growing 43% year over year.

The company stated that consistent improvements in NPS, particularly in Brazil and Mexico, give it confidence that it has the value proposition in place to build a much larger user base. It expects this trend to continue as product adoption grows and user engagement deepens across the region. The Zacks Consensus Estimate for MELI’s second quarter 2025 fintech revenues is pegged at $2.94 billion.

To support this growth, it is scaling its digital account after years of building a strong product offering and improving user experience. A key driver has been the yield on deposits, which often matches or exceeds local benchmark rates and allows immediate access to funds. These services have been expanded in key markets like Brazil, Mexico and Chile, where user growth has outpaced the overall average.

In the first quarter of 2025, MercadoLibre’s fintech business reached 64 million MAUs, up 31% year over year. The steady increase in MAUs reflects the rising adoption of digital financial services, supported by a better product and user experience.

MELI’s Competition in the Fintech Space

Several players are competing with MercadoLibre’s fintech business across Latin America, with companies like Nu NU and StoneCo STNE showing strong user growth and engagement through different models.

Nu reported nearly 100 million monthly active customers in the first quarter of 2025, supported by strong user engagement. Nu is seeing rapid adoption driven by low-cost digital banking and AI-powered credit models.

StoneCo reported 4.3 million active clients in its Micro, Small and Medium Business payments segment in the first quarter of 2025. StoneCo highlighted stronger engagement across its financial services, with 38% of clients now using multiple bundled solutions.

MELI’s Share Price Performance, Valuation and Estimates

MELI shares have gained 39.6% in the year-to-date (YTD) period, outperforming the Zacks Internet – Commerce industry and the Zacks Retail-Wholesale sector’s growth of 3.8% and 1.1%, respectively.

MELI’s YTD Price Performance

From a valuation standpoint, MELI stock is currently trading at a forward 12-month Price/Sales ratio of 3.91X compared with the industry’s 1.98X. MELI has a Value Score of D.

MELI Valuation

The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $12.01 per share, which has been revised upward by 2.65% over the past 30 days, indicating 14.60% year-over-year growth.

MercadoLibre, Inc. Price and Consensus

MercadoLibre, Inc. price-consensus-chart | MercadoLibre, Inc. Quote

The consensus mark for 2025 earnings is pegged at $48.38 per share, which has been revised upward by 0.9% over the past 30 days. The estimate indicates 28.36% year-over-year growth.

MercadoLibre currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

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This article originally published on Zacks Investment Research (zacks.com).

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