PayPal and Mercado Libre announced that they will begin the integration of their payment systems in Mexico and Brazil. After sign an agreement Last December, both companies started working on their platforms. The most obvious effect is that PayPal will become a payment option for the marketplace from MercadoLibre and for businesses that accept Mercado Pago.
According to Dan Schulman, president of PayPal, the measure will favor 346 million people who have a PayPal account. At the moment the integration will only be available for transactions made through the web, either on mobile or desktop devices.
The statement mentions that PayPal will be available as payment method for residents of Mexico and Brazil who enter Mercado Libre from other countries, as well as foreigners who make purchases in the marketplace anywhere in the world with delivery in Mexico or Brazil.
Will it be possible to pay with PayPal at Mercado Libre if I live in Mexico?
The most obvious thing about this alliance is thinking that you could pay with PayPal at Mercado Libre living in Mexico, but it is not.
According to PayPal, in the first stage of integration if you are in Mexico or Brazil you cannot use your PayPal account as a payment method. This option is only visible for cross-border purchases or if you are connected to the IP of another country.
The important part of the alliance seems to be for those who use Payment Market as a sales platform. From today sellers can enable it as new payment option online for transactions inside and outside Mexico and Brazil. That means that We can pay with PayPal on the website of all the merchants that accept Mercado Pago.
Both companies said that integration will be completed in mid-August and it will run both ways. This means that Mercado Pago users will be able to buy using their account in foreign stores that accept PayPal as a payment method.
Another important addition will be the possibility of receive remittances through Xoom in Mercado Pago accounts. Both companies detailed that this is the next step of the alliance and will be activated in the coming months.
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