Established in 2003 with the primary purpose of enabling payments for MercadoLibre's virtual marketplace, Mercado Pago has been functioning as an Electronic Payment Funds Institution (IFPE) for more than 18 months.

The subsidiary has been working to establish itself as a full-service supplier of financial services throughout this time, expanding its portfolio to include loans for SMEs and consumers, insurance products, debit and credit cards, and remittance deposits.

Pedro Rivas, general manager of Mercado Pago, says, "Today we offer services similar to those of traditional banks in a digital, inclusive, and efficient manner."

"Millions of people consider us to be their virtual bank. We now wish to make this official and grow become Mexico's biggest bank that operates entirely online.

"Meetings with regulators have already commenced," according to Mercado Pago, and the official filing of its MBI application is scheduled for "the coming months."

"We want to grow to have a bigger influence on Mexico's digital banking system, even though we've made progress toward our original goal of democratizing financial services," continues Rivas.

Osvaldo Gimenez, president of Mercado Pago, told Bloomberg that the company has chosen to undertake the conventional path of applying for a banking license rather than purchasing one, and he estimates the process will take 12 to 24 months.