SECURITIZATION TRANSACTIONS

3 Months Ended

Mar. 31, 2025

Securitization Transactions [Abstract]

The process of securitization consists of the issuance of securities collateralized by a pool of assets through a special purpose entity (“SPEs”), often under a VIE.

The Company securitizes financial assets associated with its credit card receivables and loans receivable portfolio. The Company’s securitization transactions typically involve the legal transfer of financial assets to bankruptcy remote SPEs. The Company generally retains economic interests in the collateralized securitization transactions, which are retained in the form of subordinated interests. For accounting purposes, the Company is generally precluded from recording the transfers of assets in securitization transactions as sales and is required to consolidate the SPE.

The Company securitizes certain credit card receivables related to users’ purchases through Chilean SPEs. Under these SPE contracts, the Company has determined that it has no obligation to absorb losses or the right to receive benefits of the SPEs that could be significant because it does not retain any equity certificate of participation or subordinated interest in the SPEs. As the Company does not control the vehicles, its assets, liabilities and related results are not consolidated in the Company’s financial statements.

Additionally, the Company securitizes certain credit card receivables related to users’ purchases through Brazilian SPEs. Under these SPE contracts, the Company has determined that it has the obligation to absorb losses or the right to receive benefits of the SPEs that could be significant because it retains subordinated interest in the SPEs. As the Company controls the vehicles, the assets, liabilities and related results are consolidated in its financial statements.

The Company securitizes certain loans receivable through Brazilian, Argentine, Mexican and Chilean SPEs, formed to securitize loans receivable provided by the Company to its users or purchased from financial institutions that grant loans to the Company’s users through Mercado Pago. According to the SPE contracts, the Company has determined that it has both the power to direct the activities of the entity that most significantly impact the entity’s performance and the obligation to absorb losses or the right to receive benefits of the entity that could be significant because it retains the equity certificates of participation and would therefore also be consolidated.

When the Company controls the vehicle, it accounts for the securitization transactions as if they were secured financing and therefore the assets, liabilities and related results are consolidated in its financial statements.

The following table summarizes the Company’s collateralized debt under securitization transactions, as of March 31, 2025:

SPEs

Collateralized debt
(In millions)

Interest rate

Currency

Maturity

Mercado Crédito I Brasil Fundo de Investimento Em Direitos Creditórios Não Padronizados

140

CDI + 2.50%

Brazilian Reais

March 2027

Mercado Crédito Fundo de Investimento Em Direitos Creditórios Não Padronizado

CDI + 3.50%

Brazilian Reais

August 2025

Mercado Crédito II Brasil Fundo De Investimento Em Direitos Creditórios Nao Padronizados

209

CDI + 2.35%

Brazilian Reais

January 2030

Mercado Crédito II Brasil Fundo De Investimento Em Direitos Creditórios Nao Padronizados

CDI + 5.25%

Brazilian Reais

July 2028

Seller Fundo De Investimento Em Direitos Creditórios

183

CDI + 1.60%

Brazilian Reais

March 2026

Seller Fundo De Investimento Em Direitos Creditórios

CDI + 1.80%

Brazilian Reais

May 2026

Seller Fundo De Investimento Em Direitos Creditórios

CDI + 1.40%

Brazilian Reais

September 2026

Seller Fundo De Investimento Em Direitos Creditórios

CDI + 1.60%

Brazilian Reais

November 2026

Seller II Fundo De Investimento Em Direitos Creditórios Segmento Meios De Pagamento De Resp Ltda

175

CDI + 0.85%

Brazilian Reais

July 2027

Mercado Crédito Consumo XXXIV

Badlar rates plus 200 basis points with a min 15% and a max 60%

Argentine Pesos

April - July 2025 (1)

Mercado Crédito Consumo XXXV

Badlar rates plus 200 basis points with a min 15% and a max 60%

Argentine Pesos

June - August 2025 (1)

Mercado Crédito XXII

Badlar rates plus 200 basis points with a min 15% and a max 70%

Argentine Pesos

April 2025

Mercado Crédito XXIII

Badlar rates plus 200 basis points with a min 15% and a max 60%

Argentine Pesos

May - June 2025 (1)

Mercado Crédito XXIV

Badlar rates plus 200 basis points with a min 15% and a max 60%

Argentine Pesos

June - August 2025 (1)

Mercado Crédito XXV

Badlar rates plus 200 basis points with a min 15% and a max 60%

Argentine Pesos

July - August 2025 (1)

Mercado Crédito XXVI

Badlar rates plus 200 basis points with a min 15% and a max 60%

Argentine Pesos

August - October 2025 (1)

Mercado Crédito XXVII

Badlar rates plus 200 basis points with a min 15% and a max 60%

Argentine Pesos

August - October 2025 (1)

Mercado Crédito XXVIII

Badlar rates plus 200 basis points with a min 15% and a max 60%

Argentine Pesos

September - November 2025 (1)

Mercado Crédito XXIX

Badlar rates plus 200 basis points with a min 15% and a max 60%

Argentine Pesos

September - November 2025 (1)

Mercado Crédito XXX

Badlar rates plus 200 basis points with a min 15% and a max 60%

Argentine Pesos

October - December 2025 (1)

Mercado Crédito XXXI

Badlar rates plus 200 basis points with a min 15% and a max 60%

Argentine Pesos

October - December 2025 (1)

SPEs

Collateralized debt
(In millions)

Interest rate

Currency

Maturity

Mercado Crédito XXXII

Badlar rates plus 200 basis points with a min 15% and a max 60%

Argentine Pesos

November 2025 - January 2026 (1)

Mercado Crédito XXXIII

Badlar rates plus 200 basis points with a min 15% and a max 60%

Argentine Pesos

November 2025 - February 2026 (1)

Mercado Crédito XXXIV

Badlar rates plus 200 basis points with a min 10% and a max 50%

Argentine Pesos

January - March 2026 (1)

Mercado Crédito XXXV (2)

Badlar rates plus 200 basis points with a min 10% and a max 40%

Argentine Pesos

February - March 2026 (1)

Mercado Crédito XXXVI (2)

TAMAR rates plus 100 basis points with a min 15% and a max 50%

Argentine Pesos

March - July 2026 (1)

Fideicomiso de administración y fuente de pago CIB/3756

205

The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus 2.35%

Mexican Pesos

August 2026

Fideicomiso de administración y fuente de pago CIB/3369

The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus 7.0%

Mexican Pesos

July 2027

Fideicomiso de administración y fuente de pago CIB/3369

222

The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus 2.80%

Mexican Pesos

July 2027

Fideicomiso Irrevocable de Administración y Fuente de Pago número CIB/4372

131

The equilibrium interbank interest rate published by Banco de Mexico in the Diario Oficial plus 2.50%

Mexican Pesos

August 2027

Frontal Trust Mercado Pago Créditos Fondo de Inversión

TAB 30 + 2.10%

Chilean Pesos

November 2027

Frontal Trust Mercado Pago Créditos Fondo de Inversión

TAB 30 + 3.90%

Chilean Pesos

November 2027

Frontal Trust Mercado Pago Créditos Fondo de Inversión

TAB 30 + 4.25%

Chilean Pesos

November 2027

2,096

(1) Minimum and maximum maturity depending on the applicable interest rate within the range.

(2) As of March 31, 2025, Loans payables owned by this trust were obtained through private placements. Mercado Crédito XXXV trust made the public debt issuance in the Argentine stock market on April 8, 2025. Mercado Crédito XXXVI trust made the public debt issuance in the Argentine stock market on May 8, 2025.

This secured debt is issued by the SPEs and includes collateralized securities used to fund the Company’s Fintech business. The third-party investors in the securitization transactions have legal recourse only to the assets securing the debt and do not have recourse to the Company. Additionally, the cash flows generated by the SPEs are restricted to the payment of amounts due to third-party investors, but the Company retains the right to residual cash flows.

The assets and liabilities of the SPEs through which the Company securitizes financial assets as of March 31, 2025 and December 31, 2024 are as follows:


	March 31, 2025		December 31, 2024
Assets	(In millions)
Current assets:
Restricted cash and cash equivalents	$	410	$	492
Loans receivable, net of allowances	1,695		1,410
Intercompany receivables	933		743
Other assets	—		1
Total current assets	3,038		2,646
Non-current assets:
Long-term investments	11		12
Loans receivable, net of allowances	132		102
Total non-current assets	143		114
Total assets	$	3,181	$	2,760
Liabilities
Current liabilities:
Accounts payable and accrued expenses	$	1	$	1
Loans payable and other financial liabilities	864		610
Intercompany liabilities	66		24
Other liabilities	1		1
Total current liabilities	932		636
Non-current liabilities:
Loans payable and other financial liabilities	1,232		1,232
Total non-current liabilities	1,232		1,232
Total liabilities	$	2,164	$	1,868