/Mercado Libre buys Chilean Redelcom, a specialist in payment methods
Mercado Libre buys Chilean Redelcom, a specialist in payment methods

Mercado Libre buys Chilean Redelcom, a specialist in payment methods

MercadoLibre, the Argentine-born e-commerce company, has agreed to the first acquisition of a payment method firm.

It is a Chilean company called Redelcom, a firm under the command of businessman Roberto Chame, who has 70 percent of the domain. In addition, the company Alkasa (owned by Alberto Kassis) and Armando Jara own 15 percent each.

Redelcom is the largest purchase of the Latin American e-commerce giant in Chile since 2014, when it acquired Portal-Inmobiliario, the Chilean page for classified ads in the real estate sector, together with its subsidiary in Mexico, Guia-de-Inmuebles.

At that time, Argentina had paid more than 35 million dollars, although this time, it kept secret the money it invested in the purchase of Redelcom.

What Redelcom does

It began operations eleven years ago as a service provider for payment and, in 2019, it began to provide terminal stores of points of sale (POS) with new technologies.

MercadoLibre (ML) indicated in a statement that this new purchase aims to consolidate its value offer in most regions of Latin America and stimulate the growth of its payment methods and digital financial solutions .

ML, through MercadoPago, is an important figure in the POS market in various Latin American countries, reaching to sell more than a million terminals in the penultimate quarter re of the current year.

Redelcom will be added to the MercadoLibre and MercadoPago ecosystem, and its business model.

A growing market

ML adds in the statement that Chile presented the highest growth rates in the region and that led the company to search for alternatives in order to promote the offer for SMEs and companies that have operations with MercadoLibre.

Matías Spagui, director of MercadoPago Chile, indicated that Redelcom has the best product on the market and, taking advantage of MercadoLibre’s ecosystem skills, they will continue to strengthen financial services in this country.

Redelcom is a company that aims to democratize commerce and achieve a greater financial inclusion in the region .

Almost all of its clients are SMEs and entrepreneurs little ones. As they said, beyond the sale, they will continue to offer the same quality of service.

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The idea of ​​Mercado Libre is to expand the business

Redelcom is a network of payments that provide technology throughout Chile. Their POS accept payments either with credit or debit cards, and from all national and international banks.

In addition, it gives the merchant elements that facilitate the management of their money, an example is the system that issues electronic tickets that are linked to the Internal Tax Service of Chile, which is linked to the cash register control system , something that gives rise to the knowledge of every detail when trading your financial flow. Also, in the same POS , Redelcom provides services such as bill payment and cell phone recharges.

Ecosystem of payment methods

The president of MercadoPago pointed out that the acquired company began operating POS for businesses two years ago, and gave positive results since has a good team and excellent operations.

Roberto Charme, Redelcom general manager, has stated that they are happy to be part of of MercadoLibre, a company that leads the e-commerce and digital payments sector in Latin America.

They believe it is an excellent opportunity to extend the tools technologies that they offer to their clients throughout the country, adding the products and large distribution that Mercado Libre and MercadoPago have.

The Argentine company added that the purchase of Redelcom strengthens its ecosystems topic, which provides different tools to SMEs and companies through its trading platform and its Fin Tech MercadoPago.

He said that, currently , they sell in Mercado Libre a figure that is over 30 thousand SMEs and entrepreneurs, of which a little less than half have joined during the pandemic.

On the other hand, he highlighted that MercadoPago made its digital tools available to sellers to collect, and currently more than 65 thousand businesses are processing their payments with the company, and here more than 55 thousand joined in full pandemic.

Mercado Libre does not stop growing

After the rise of electronic commerce due to the covid-19 crisis, the Argentine giant has registered record figures: net income for the third quarter was almost 2 billion, a year-on-year growth of 67 percent in dollars and 73 percent in real terms.

E-commerce sales had an increase of almost 70 percent in dollars compared to the same stage last year, reaching 1.2 billion, and its Fin Tech business rose 62 percent year-on-year in dollars, reaching 633 million.

Gross profit was almost 808 million, with a margin of 44 percent. percent, compared to 42 percent in the same quarter of 2020.

Mercado Libre has a value on the Wall Street stock market of almost 60 thousand millions of dollars. To have a point of comparison, Falabella’s capitalization is 7.8 billion dollars.

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