Payment Market, the fintech of Free market, has the goal of four years from now, to digitize payments in 335 public markets and 51 flea markets in Mexico City, which would benefit more than 20,000 tenants in the country’s capital.
To do this, it has begun offering these businesses packages that include: a Point of Sale Terminal (TPV) Point Blue to accept card payments; a QR code so that they can charge their customers through the cell phone; a debit card so that they have the money instantly; but also, it gives them the possibility that, two months later, they begin to receive credits for working capital.
Alehira Orozco, director of relations with the government of Free Market Mexico, explains that for this, synergy has been made with the Government of the country’s capital through the Ministry of Economic Development, but clarifies that in addition to such benefits, the entire part of training for tenants is included.
In an interview, he details that they will start with the markets of San Juan Curiosidades, Jamaica, Arcos de Belén and San Juan Pugibet. “That is where we are going to be working. First in these markets where we have already started ”, he says.
The directive of Free market It stands out that this segment of the economy has not been served by banks, so Mercado Pago seeks to generate financial inclusion. “These opportunities to be able to expand their businesses; potentiate their businesses through the receipt of electronic payments, whether it is a credit or debit card or payment with a QR code ”.
Alehira Orozco points out that Mercado Pago’s differential compared to other options is that tenants are offered the POS at a preferential price, which accepts debit, credit and voucher cards, but also has the possibility of offering months without interest to your customers, and there will be a monthly rent charge for its use, in addition to low commissions.
Regarding the QR code, refers that this is granted to them so that it is installed in the businesses; does not have any commission charge; and tenants will be given a bonus of 1,000 pesos to carry out promotions with their customers and thus encourage the use of this means of payment.
He adds that a third product is a prepaid card, which will allow tenants to have their money available immediately.
By using these products, tenants will generate a certain financial history, so, Orozco adds, after two months, they can already benefit from a loan granted by Mercado Crédito.
“They can have access to a loan that they can use for working capital or as a personal loan. This is quite positive because they are people who probably do not have access to bank credit (…) as their transactions grow, the credit can be much higher ”, he points out.
Adoption, the challenge
Mercado Libre’s directive recognizes that the great challenge is adoption by tenants, so the benefits of these initiatives must be shown.
“It is a big challenge because it is necessary to explain to the tenants how it is used, what it consists of and the benefits it has for them, but also, and it is a fundamental part of what we are going to do, our trainers are going to go to the markets, it is not just going to sell them this kit, it is precisely the accompaniment in terms of the training that is going to be given ”, he points out.
Alehira Orozco comments that there are already different initiatives being carried out, and gave the example of a juice stand in La Condesa in Mexico City, whose tenant began by charging through electronic channels, and now he has already received his first loan for capital of work.
“It is a challenge, but I think that people, as they attend to it, understand the benefits that this has. So the purpose and our commitment is that they try it, but to generate the whole environment so that this is detonated so that there are more people going to spend at these points ”, he emphasizes.
He adds: “in the end from Mercado Pago (the objective) would be to accelerate the growth of the businesses and thanks to the tools that we are generating, help them to facilitate their operations and obviously also reduce the use of cash. To fulfill our objective, our mission, which is to generate financial inclusion ”.