MercadoLibre, Inc. (MELI) issued 2.7 million credit cards in Q1 2026, boosting its credit card portfolio to $6.6 billion—a 104% year-over-year increase. Credit card balances now represent 46% of the total credit portfolio, up from 42% a year prior, with total payment volume increasing by 90% compared to the same period last year. Monthly active users also rose by 68%.
The credit card business is strategically converting marketplace-only buyers into engaged fintech users and enhancing gross merchandise volume. The firm also saw an 80-basis point improvement in its 15-90-day non-performing loan ratio. MercadoLibre plans to expand credit card issuance in Mexico and build efforts in Argentina based on favorable credit performance.
Despite a 15% decline in its stock over the last six months, the company carries a forward price-to-earnings (P/E) ratio of 35.89, higher than the industry’s 21.92. The Zacks Consensus Estimate predicts a 39.7% year-over-year sales growth for the current financial year.
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