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Argentina's online retailer Mercado Libre launches investment platform with Bind

The Argentine e-commerce company Mercado Libre plans to expand into digital banking services with a new online investment platform that will be called Mercado Fondos, according to a report by La Nación.

Marcos Galperin, the CEO of Mercado Libre — Latin America's largest online retailer — presented the launch plan for the new service May 31, and said it includes a partnership with Buenos Aires-based Banco Industrial SA, or Bind.

According to the report, users of Mercado Fondos will be able to deposit money in accounts that will invest in low-risk fixed-income securities, such as Argentine central bank Lebac notes in a mutual fund scheme.

"This will allow us to offer the product to the masses and improve its usability. While the money will be with Bind, we will protect those funds in Mercado Pago, and will be accessible at any time," Osvaldo Giménez, executive vice president of Mercado Pago, reportedly said.

Mercado Pago is Mercado Libre's transaction and payment service business tied to its e-commerce platform that offers credit and debit card processing.

Last year the company launched online credit platform Mercado Crédito, offering online loans to users, prompting Argentina's banking association to file a complaint to authorities over financial technology firms acting as lenders. According to Giménez, the company disbursed loans worth $250 million over the last 12 months.