MercadoLibre (MELI) Acquires Redelcom, Boosts Payment Solution

MercadoLibre MELI announced the acquisition of Chile-based payment services provider Redelcom in a bid to strengthen its position in the country.

Redelcom provides advanced technological solutions to small and large businesses. Moreover, it offers money management services to merchants.

The company’s point-of-sale offers various services like bill payment and cell phone recharges. It also provides payment acceptance from all credit and debit cards.

The acquisition of Redelcom has added strength to its portfolio of payment solutions.

Further, Redelcom will be part of the company’s Mercado Pago.

MercadoLibre, Inc. Price

MercadoLibre, Inc. price | MercadoLibre, Inc. Quote

Mercado Pago in Focus

The acquisition of Redelcom bodes well with MercadoLibre’s growing efforts to bolster the Mercado Pago unit.

Mercado Pago has been a pioneer in the point-of-sale space in Latin America. It is worth mentioning that it sold more than one million terminals in third-quarter 2021.

It provides users with notable technological solutions like wallet payment online, in-app or in-store transfers, withdrawals, and fintech active products such as asset management and insurtech.

Its strong initiatives to strengthen its credit business for individual and merchant users remain another positive for the company.

Bottom Line

We believe that the recent move will help MercadoLibre penetrate the digital payments market in Latin America.

The latest move is also in sync with the company’s growing focus on minimizing financial inclusion gaps and helping small merchants to grow their businesses.

The company’s strong measures of strengthening its financial services portfolio will continue to expand its presence in the fintech space.

The expanding portfolio of financial services will help MercadoLibre win more customers in the upcoming period.

Zacks Rank & Stocks to Consider

Currently, MercadoLibre carries a Zacks Rank #3 (Hold).

Investors interested in the retail-wholesale sector can consider some better-ranked stocks like Capri Holdings CPRI, JD.com JD and Penske Automotive Group PAG. While Capri Holdings and JD.com currently sport a Zacks Rank #1 (Strong Buy), Penske Automotive Group carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Capri Holdings has gained 51.1% on a year-to-date basis. The long-term earnings growth rate for CPRI is currently projected at 32.2%.

JD.com has gained 39.4% on a year-to-date basis. The long-term earnings growth rate for JD is currently projected at 26.9%.

Penske Automotive Group has gained 30% on a year-to-date basis. The long-term earnings growth rate for PAG is currently projected at 20.04%.

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