La Derecha Diario Mercado Pago Launches an Interest-bearing Account in Dollars and Expands Its Investment Offering
The platform had already incorporated the possibility of buying, selling, and transferring MEP dollars. The details of the measure
Mercado Pago, Mercado Libre's fintech, announced a new investment option for its users: a dollar-denominated interest-bearing account, replicating the scheme it already offers in pesos.
This new product adds to the growing trend of dollar investments within the fintech sector and the offering of Mutual Funds (FCI), providing a digital alternative for those looking to generate returns without resorting to traditional savings options.
How Mercado Pago's dollar-denominated interest-bearing account works
The platform had already incorporated the possibility of buying, selling, and transferring MEP dollars, an option used by many Argentinians to dollarize legally and at low cost.
Now, with the new interest-bearing account, users will be able to invest those dollars in a mutual fund managed by Industrial Asset Management and held by Banco Industrial.
Some of its main features:
- Generates daily returns on the dollars acquired through the MEP Dollar function.
- Estimated annual interest rate of 1.1%, significantly lower than peso rates due to market conditions.
- Minimum investment amount of 1 dollar and no maintenance costs.
- Immediate availability to use or transfer the dollars at any time.
To access this functionality, users must be over 18 years old, accept the terms and conditions, and have the MEP Dollar buying and selling option enabled.
The rise of dollar "money market" funds
The launch of Mercado Pago is part of a growing competition in the fintech sector. Other platforms, such as Ualá and Cocos Capital, have developed similar products to attract users interested in dollar savings.
- Ualá recently launched the FCI Ahorro Dólares, which allows investing from 1 dollar in corporate bonds and public securities, both local and international.
- Cocos Capital introduced a fixed-income dollar mutual fund, with an estimated return of between 6% and 8% annually, aimed at investors with a medium-term horizon.
Traditional banks have also expanded their offerings in this segment, with dollar "money market" funds offering immediate redemption (T+0), allowing short-term liquidity placement with immediate access to invested funds.
An expanding market
With the annual inflation rate in the United States hovering around 3.5% in 2024, more and more Argentinians are looking to diversify their portfolios in dollars and protect the value of their money. In this context, fintechs like Mercado Pago, Ualá, and Cocos Capital have managed to differentiate themselves from traditional banking with 100% digital, accessible, and easy-to-use products.
Competition in this sector continues to increase, with new functionalities and adjustments in yield rates according to market evolution. As the demand for dollar investment tools grows, fintechs continue to establish themselves as key players in the transformation of the financial system.
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