Why MercadoLibre, Inc. (MELI) Is Among The Best Mobile Payments Stocks to Buy Now

In the rapidly evolving global payments landscape, few companies embody the intersection of innovation, market dominance, and social impact as effectively as MercadoLibre, Inc. (MELI). As Latin America's leading e-commerce and fintech platform, MercadoLibre has not only capitalized on the region's digital transformation but has also redefined it. With a 30% market share in the region's online commerce by 2026, according to an Emarketer Data Drop, and a fintech arm, Mercado Pago, that processes over $197 billion in payments annually, per its Q1 2025 results, the company is uniquely positioned to benefit from Latin America's financial inclusion boom. For investors seeking exposure to a high-growth, socially transformative stock, MercadoLibre represents an unparalleled opportunity.

Strategic Dominance in Digital Commerce

MercadoLibre's dominance in Latin America's digital commerce sector is underpinned by its robust logistics infrastructure and relentless focus on scalability. In Q1 2025, the company reported a Gross Merchandise Value (GMV) of $13.3 billion, a 17% year-over-year increase. This growth is driven by its proprietary logistics network, Mercado Envios, which shipped over 1.2 billion items in 2024, according to a Sergey Cyw Substack article, and its recent foray into air freight via MELI Air. These investments have not only reduced delivery times but also insulated the company from supply chain volatility, a critical advantage in a region historically plagued by logistical inefficiencies.

The company's strategic investments further cement its leadership. By allocating $9.2 billion to Brazil and Mexico in 2025, MercadoLibre is expanding its footprint in two of Latin America's largest economies, where e-commerce penetration remains below global averages. This capital is being directed toward enhancing its marketplace, improving user experience, and integrating AI-driven tools to optimize inventory and pricing, as noted in its Q1 2025 results. Such forward-looking strategies position MercadoLibre to capture a growing share of a market projected to expand at a double-digit CAGR over the next five years, per the Emarketer Data Drop cited above.

Financial Inclusion: A Catalyst for Growth

Mercado Pago, MercadoLibre's fintech division, is the linchpin of its broader strategy. With 64 million monthly active users as of Q1 2025 (per its Q1 2025 results), the platform has become a de facto digital bank for over 60 million Latin Americans, according to the Sergey Cyw Substack article. This is particularly significant in a region where over 122 million people remain unbanked or underbanked, according to an Emarketer report. By offering low-cost digital wallets, BNPL (Buy Now, Pay Later) services, and small business credit solutions, Mercado Pago is bridging the gap between traditional banking and the informal economy.

The BNPL segment, in particular, has emerged as a game-changer. In 2024, Mercado Pago extended over $24 billion in credit, enabling millions of first-time buyers and SMEs to access flexible payment options, as described in the Sergey Cyw Substack article. This is not merely a financial service but a tool for economic empowerment. In Argentina, for instance, 99% of adults now use Mercado Pago for financial transactions, a stark contrast to the 50% figure in 2017 (per MercadoLibre's Q1 2025 results). By leveraging AI-driven credit scoring and behavioral data, the company is offering tailored financial products that traditional banks have long failed to deliver, as outlined in its Q1 2025 results.

AI and Data-Driven Innovation

MercadoLibre's integration of artificial intelligence into its operations further strengthens its competitive edge. The company is automating financial processes such as trial balance reporting and anomaly detection, reducing costs while enhancing transparency, according to its Q1 2025 results. This AI-driven approach is not limited to internal operations; it extends to user-facing services, including personalized credit recommendations and fraud prevention. Such innovations are critical in a region where high inflation and currency instability demand agile, responsive financial systems, a point reinforced by analysis in the Sergey Cyw Substack article.

Growth Projections and Risks

While MercadoLibre's trajectory is compelling, investors must consider macroeconomic risks. Latin America's economies remain vulnerable to currency fluctuations and political instability. However, MercadoLibre's FX-neutral growth (40% of its GMV growth in Q1 2025 was FX-neutral, per its Q1 2025 results) and diversified regional presence mitigate these risks. Moreover, the company's focus on financial inclusion aligns with global trends, including the World Bank's emphasis on inclusive growth and the themes noted in the Sergey Cyw Substack article.

Conclusion

MercadoLibre's strategic dominance in Latin America's digital commerce and mobile payments sector is not accidental but the result of visionary leadership, relentless innovation, and a deep understanding of the region's unmet needs. As the company continues to expand its logistics network, deepen its fintech offerings, and harness AI, it is poised to outperform peers in both growth and societal impact. For investors seeking a stock that combines high returns with transformative potential, MercadoLibre is an investment thesis that cannot be ignored.