Mercado Pago, Mercado Libre’s Fintech, Launches Payroll-Deducted Loans in Brazil

Mercado Pago, the fintech subsidiary of Brazil's leading e-commerce platform Mercado Libre, has entered the fast-growing payroll-loan market in Brazil. Beginning on August 17, 2026, the company began offering "consignado privado" loans to private-sector workers, loans that are repaid through automatic payroll deductions. This innovative approach aims to reduce risk for lenders, as repayment occurs before workers can spend the money, and results in cheaper rates compared to traditional personal loans.

The product is run through the government's Crédito do Trabalhador platform, which has facilitated the movement of roughly R$117 billion in loans since its launch in March 2025, equating to around US$22 billion. Over 20 million contracts have been signed, reaching nearly 10 million workers. While the government has implemented limits on deduction percentages and interest rates to curb over-indebtedness, Mercado Pago's entry into this market positions it to gain a significant share, given its already extensive reach among Brazilian consumers through its payment and credit platforms.