MercadoLibre Inc., the powerhouse of e-commerce and payments in Latin America, has appointed Andre Chaves as the head of its fintech division, Mercado Pago, in the country, according to a Bloomberg report.
Chaves, 41, steps into his new role with a rich background in corporate strategy and development, having served as a senior vice president within MercadoLibre since 2020, and previously, as a partner at Bain & Co.
This appointment comes as Brazil remains a critical market for MercadoLibre, generating over half of its $14.5 billion revenue in 2023.
Mercado Pago, the company’s payment and financial solutions arm, has seen its contribution to the overall revenue increase from 36% in 2020 to 43% last year, fueled by a surge in e-commerce transactions, loans, and insurance services through the platform.
Chaves replaces Tulio Oliveira, who transitions to the role of chief financial officer for MercadoLibre Brazil, and will report to Osvaldo Gimenez, president of the Fintech unit, the report added.
The leadership change, according to Chaves, is not a response to any internal or external pressures but an opportunity to inject a fresh perspective and restructure the team for continued growth.
Under its new leadership, Mercado Pago aims to expand its customer base beyond nano merchants to include small businesses, leveraging its extensive logistics network to support their operations.
Chaves highlighted the priority to develop a comprehensive value proposition for small sellers, encompassing payment processing and other essential services.
MercadoLibre has demonstrated robust growth, with its stock price increasing by 30% in the past year, despite a recent dip following unexpected fourth-quarter provisions.
With a market value of $80 billion, it stands as the second most valuable company in Latin America, trailing only behind Petroleo Brasileiro SA.
As it continues to evolve, Mercado Pago plans to focus on attracting small business customers and improving product awareness.
The fintech giant offers a wide range of financial products, from card readers and QR codes for transactions to credit cards and savings accounts, leveraging consumer data from its e-commerce platform to extend credit offerings.