Q3 2021 Mercadolibre Inc Earnings Call
Pardon me. This is the operator today's conference is scheduled to begin shortly.
He was the standby thank you for your patience.
[music].
Good day, and thank you for standing by and welcome to Mack Cali Realty third quarter 2021 earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question during that portion of the call you will need to press star one on your telephone.
And please be advised that today's conference is being recorded.
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At least not sure Investor Relations officer.
Hello, everyone and welcome to the medical earnings Conference call for the quarter ended September 30th 2021.
I am <unk> Investor Relations officer for Mcdonald's.
Our Chief Financial Officer, David Arndt will be leading today's prepared remarks.
Joining him on the line as Chief Executive Officer of Mercado Pago was the other he minutes will be available during today's Q&A session.
I remind you that management may make forward looking statements relating to such matters as continued growth prospects for the company industry trends and product and technology initiatives.
These statements are based on currently available information and our current assumptions expectations and projections about future events.
While we believe that our assumptions expectations and projections are reasonable in view of the currently available information you are cautioned not to place undue reliance on these forward looking statements.
Our actual results may differ materially from those included in this conference call a variety of reasons, including those described in the forward looking statements and risk factors section of our Form 10-K for the year ended December 31st 2020 item one a risk factors in part two of the Form 10-Q for the quarter.
Ended March 31, 2021, and any of medical need of inks other applicable filings with the Securities and Exchange Commission, which are available on our Investor Relations website.
I will now turn the call over to Pedro.
Hi, everyone and thanks for joining our earnings call this quarter.
I'll start with a few notes regarding our operating environment.
Fortunately, we've seen a consistent easing of mobility restrictions across our region in the last few months with signs that we are approaching a new phase.
And our response to the COVID-19 pandemic.
This is great news as only a year ago, we had experienced the peak of severe lockdowns and government financial aid interventions in the third quarter of 2020.
On the business side. These positive trends also mean that this is the quarter, that's toughest year over year growth comparisons for our main metrics.
Having spent over a year working through difficult macro economic and healthcare conditions throughout Latin America.
We are starting to take stock of our role and our impact in commerce and financial services businesses throughout this time.
In September we released the results of a study titled impacts that matter conducted by Euro monitor that assessed our contribution to the socioeconomic environment and ecosystem make effects in our key geographies over the past year.
We're proud to see that our mission of creating sustainable prosperity in our region through the Democratic nation of Commerce and access to financial services is coming to fruition.
Our platforms have enabled the main source of income for over 900000 families in our region and we generated six new jobs per hour during 2020 directly or semi directly through our ecosystem.
As we expanded our credit business over 40% of our Smes access their first loans ever.
Most of which were geared towards investing in working capital for their businesses.
Overall, we've enabled our merchants to grow their operations well beyond their cities and amplified their reach into our larger economy, becoming an even more important source of revenues during the challenging year of 2020.
The full Euro monitor report summary has been uploaded to our website and we encourage you to have a look at it.
As a result of what we believe to be these lasting contributions to financial inclusion and Democratic nation of commerce through an improved experience for our users our volume growth rates continue to demonstrate a solid trajectory over the long term.
We've once again reached new records in gross merchandize volume payment volumes and credit portfolio size, which demonstrates resilience and strength across all parts of our ecosystem.
Moreover, we see our engagement and satisfaction improving sequentially for both commerce and Fintech services, which is particularly encouraging given the user base expansion that we have driven over the last year.
Let me dive deeper into third quarter results, starting with our commerce business.
For the first quarter, we achieved a new record in <unk> of over seven 3 billion.
Posting a growth of almost 30% on an FX neutral basis.
This represents an increase of over one 4 billion.
Compared to the same quarter last year.
We also see consistency on a two year CAGR growth and FX neutral <unk> of 73% very similar to the 74% achieved in both Q1 and Q2 of this year.
We sold almost 260 million items in the third quarter.
Growing over 26% year over year.
This growth is fueled by continued increases in our commerce user base.
We reached $38 6 million unique buyers on the commerce side alone and our buyers are demonstrating higher levels of engagement with increasing transactions per unique buyer sequentially.
We're still seeing higher levels of new buyers to our platform compared to the periods before the pandemic and of equal importance, we are maintaining better retention levels as well.
Taking a look across our geographies. The first that stands out in terms of growth is Brazil.
With an FX neutral growth of 28% and GMB, Brazil reached almost 138 million items sold during the third quarter.
These growth rates are above what we had experienced prior to the pandemic and the 51% two year CAGR is flat compared to prior quarters with 53% in Q1 and the same 51% in Q2.
In Mexico gross merchandize volume grew over 34% on an FX neutral basis, accelerating compared to Q2 and growing unique buyers sequentially.
Argentina reached almost 37% of GMB growth on an FX neutral basis, and all three geographies improved in transactions per buyer versus the previous quarter and net promoter scores are also trending to their highest levels yet in several of these key geographies.
We attribute the sustained and continuous increase in buyer engagement to several initiatives that we are running in parallel first.
First our developments and product assortment and depth of product can be linked to this change in behavior towards higher frequency.
Our marketplace is increasingly filled with well recognized brands in the fashion beauty consumer electronics and consumer packaged goods industries, not only for marketplace sellers, but also through the development of our first party assortment.
Just as an example in the last few months items from Nikkei Asia.
Nevada, and Playstation can be found in our marketplace in Brazil.
As well as Apple Samsung and <unk> that have been added to our platform in Mexico.
Particularly for our grocery strategy, we have taken an additional step to expand our assortment with our first pilot programs for fresh items.
In San Paolo we started operating with bumble, a local food retailer to offer their fresh selection and we are setting up similar partnerships for the coming quarters in both point of Cyrus and Mexico City.
During these early days of moving into the supermarket category, we have observed that supermarket buyers not only have a how youre purchasing frequency, but also we're demonstrating better user retention rates.
Second we continue to enhance our tiered loyalty program, which not only builds strength on the commerce side, but also ties in our Fintech services.
With the strong partnerships, we have developed with our content providers, we believe the benefits and discounts offered through the loyalty program are among the best in class.
More recently in September we started giving users the option of purchasing access to our highest loyalty tier offering our most comprehensive benefits with the highest shipping and content discounts to these paid users.
Finally.
The consistent results of the last year proved to the great importance of reliable fast shipping to remove barriers to e-commerce.
We made significant investments in the continued rollout of our managed logistics network during the third quarter.
So turning to Mercado envos the advances in speed and execution on the network are transforming the commerce experience throughout the region.
In Q3, we shipped almost $248 million items and developed more capabilities to expand fulfillment throughout our key geographies.
Our managed network penetration reached 86% up from 64% in the same quarter last year.
Within that network fulfillment by Mercado Libre is propelling growth, having reached 37% penetration.
We launched two new fulfillment centers in Brazil, this quarter and converted two existing fulfillment centers into centers that are now fully managed by us.
In Mexico, and additional fulfillment center was implemented and will be expanded in the coming months.
Argentina, Colombia, and Chile, we see more sellers and items being moved into our fulfillment centers.
Overall, we have now 16 active fulfillment centers throughout the region, enabling our delivery times to improve every quarter.
Faster shipping is also coming through our cross docking network, which represents over 40% of shipments.
We are improving our service levels within cross stocking as we scale and mature the various nodes of this extensive network.
As part of this expansion, we signed an agreement to acquire a specialized logistics technology company can do in the third quarter. After having developed a strong partnership of accelerated growth in shipping capabilities with them starting in 2019.
Operating over 5000 pickup and drop off points Kangoo has created a differentiated value proposition for logistics in Brazil, Mexico and Columbia.
It is asset light and technologically integrated.
This network, which we will now call Meli places is now part of our logistics assets, allowing us to increase our networks capillarity, reaching more sellers than buyers at faster speeds and growing the model based on our geographical and service expansion opportunities.
One example of this is that over 60% of mentally places are already enabled for pick up functionality for buyers who have opted not to receive their purchases at their home address in.
In Mexico, we're already using some of these places to receive returns and experience we will rollout to other countries shortly.
We can also count on our flex solution to improve shipping times for shipments traveling within the same urban area.
<unk> is already operating seven days a week for all sites, where it has been deployed.
The flex technology is also running part of the hybrid shipping model for supermarket items, while dry goods are being shipped from our fulfillment centers fresh products shipped directly from the store to the buyer leveraging the capabilities of the flex network.
Flex represents almost 10% of our shipments today and has developed particularly quickly in Argentina, Chile, Colombia, and Uruguay, So far while also delivering the fastest times on our network.
Combining all of these flexible shipping capabilities, we are achieving our goals to run faster and more reliable delivery operation.
In the third quarter, almost 80% of all items were delivered within 48 hours, while consistently increasing the number of free items shipped.
We are developing more specialized capabilities to take on a variety of categories within our network.
The continuous improvement around our shipping solutions goes hand in hand, with our category development expansions our strategy to create the proprietary technology and infrastructure around logistics continues to open new strategic doors for us and has become one of our key assets and strengths.
For our E Commerce operations.
I'd like now to spend some time delving deeper into our Fintech business, which we are extremely excited with.
We are encouraged by the signs that we have reached the level of product maturity in certain parts of the fintech business and simultaneously, we see vast opportunities to keep developing our reach into large markets of unbanked and underbanked users throughout Latin America.
We're focused on fueling these next growth engines by taking our new upcoming fin product to market.
In light of this we've transitioned the organization to approach solution based on the end user and not the product offering and are therefore, dividing our products and services into two organizational units merchant and individuals.
This should allow for better cross selling opportunities and also a more consumer focused go to market strategy.
A more integrated view of each segment of merchants will enable us to provide more customized solutions within our product portfolio.
On the individual side, our strategy is to drive deeper relationships with our users and offer them a greater array of services through the digital account.
To illustrate our efforts under this framework, we will begin disclosing our TPP with an additional breakdown of acquiring TPB and digital TPB from now on.
Together acquiring TPB and digital account TPB add to our consolidated total payment volume in the region, which reached $29 billion in the third quarter growing 59% on an FX neutral basis.
This represents over 865 million payment transactions in the quarter growing 55% year over year.
Now, let me give you a more detailed update on third quarter performance for our acquiring TPG, which encapsulates on platform payments as well as merchant services for online payments, the mobile point of sale business and QR payments.
Acquiring TPB reached $15 4 billion.
Growing 46% on a consolidated FX neutral basis.
Within that on platform TPB reached seven $5 billion at 29% FX neutral growth in line with our on platform GMB growth.
Online payments outside of our platform had a similar growth level of 32% on an FX neutral basis.
Though with a more accentuated deceleration compared to Q2 as expected since physical retail started to reopen during this period and the year over year comparisons steepened.
The leading highlights in terms of growth, where Pos and QR payments during the third quarter, we were happy to see strong payment volume figures in both of these segments as individuals and merchants are now back to safer mobility in the region with point TPB growing 78% on a.
Holidayed FX neutral basis, and with $1 $3 million in device sales this quarter.
Equally important are the advances of the QR payments for our merchants, which have accelerated in growth this quarter in all geographies.
The new digital account TPB encompasses the individual payment services available in our wallet as well as all card payments, including debit prepaid and credit.
But we are excluding on monetized transfers other than peer to peer between Mercado Pago accounts.
Digital TPB reached five $5 billion in the third quarter with a 101% growth on a consolidated FX neutral basis.
The digital account is also the platform that hosts multiple additional services for users beyond the payments reflected in TPP.
Such as the adoption and management of our consumer credit line hiring of insurance policies and certificates and the typical bank transfers to other outside accounts.
Though not reflected in our reported payment volume. These other services have increasingly better user interfaces and integration with our full ecosystem.
We believe these other accessories services are key to maintaining users' trust and engaging with ample financial services available in the Mercado Pago digital account as we increasingly vie for the Principality in financial services of our user base.
And while I'm on engagement I'd like to introduce a new methodology of accounting and tracking unique fintech active users.
Within our full Mercado libre ecosystem of almost $78 7 million actively quarterly users in Q3, we have a subset of users that are employing a ricardo pago fintech product, which we call unique fintech active users.
We count a user as a unique fintech active user if they are engaged in at least one of the following services within the quarter wallet payment online in app or in store transfers withdrawals consumer or merchant credit borrowers card users fintech sellers and Fintech.
Active products, such as asset management and insure tech users.
We had 31 6 million unique fintech active users in the third quarter of 2021 alone.
A growth of 13% compared to last year's similar quarter.
Until the last quarter, we had been giving a lot of attention to the number of wallet payers, which continue to trend upwards during the third quarter, reaching $16 8 million wallet payers up from $15 1 million in the second quarter.
Yet given our increasing attention to serving individuals beyond the payment facilities offered in the wallet. We believed that the unique fintech active user metric better reflects our user base that is engaged with our digital account.
We are looking forward to sharing more around this metric as our products continue to mature and the number of features per user presents growing trends.
A key extension of our Fintech services that supports our merchant and individual user base as our credit business we.
We have exciting developments taking place in this part of the ecosystem and it will be leave it will be a core server to users that are entering basic financial services in our region.
Our credit business took another significant step in Q3, surpassing the $1 billion Mark in total portfolio size.
The $1 1 billion credit portfolio is the result of originating over $1 billion during the quarter.
Our consumer credit book is leading the growth with our two main products personal loans and credits for purchases on our platforms.
While credits for purchases is still the main product personal loans for possible uses outside of our platform are accelerating and achieving a greater presence in the consumer credit book.
At a country level, our consumer credit book is growing at high triple digits across all countries.
Overall, we've reached almost 36 million consumers with preapproved credit lines at their disposal.
From $27 million in the second quarter.
In the merchant credit portfolio for both online and offline merchants, we see continued expansion in our merchant base opting for a credit line.
We've made improvements to the product interface and collection processes that create a seamless and effective experience for our merchants.
We developed repayment methods, so that merchants can now settle their loans on either a fixed installment over time, our opt to settle through a percentage of their transacted volume with us.
At the country level, we saw spiked increase in credit loans in Argentina, Brazil and Mexico.
Considering our full credit portfolio nonperforming loans are stable compared to the previous quarter.
Overall and at the individual portfolio level, we are encouraged to see our ability to score and manage risk as we extend more credit lines to our users and all of our credit books were profitable during the third quarter.
Building on our credit capabilities and our ambition to extend the services attached to the digital account. We are excited by the first waves of implementation of our credit card for now rolled out only in Brazil.
We expect the credit card to be one of the key features of our digital account to unlock future payment volume growth as well as as a means to increase user engagement and retention.
In Q3, we were focused on new features for the credit card product and understanding our user behavior better.
There are several encouraging signs that we are headed in the right direction for the credit card.
Net promoter scores for Mercado Pago credit card holders.
Trended significantly above our mercado pago averages during the third quarter.
Secondly over half of the credit card transactions are already occurring outside of our marketplace and payment platforms.
This grew 69% on an FX neutral basis, while Argentina, and Mexico posted even higher ethics neutral growth rates with 83% and almost 76% respectively.
Revenue growth is driven by consistent growth and our third party and first party merchandise as well as payment volumes and the expansion of our credit business, while maintaining the consistent monetization levels seen in the previous quarter.
The strong results occurred despite revenues being negatively impacted by continuous rise of interest rates in Brazil, which compressed spreads on our financing businesses that are reported net funding costs.
During the quarter, we were able to partially offset this impact by implementing initiatives that diversify funding sources and through pricing.
For the third quarter gross profit was almost $807 million at a margin of 43, 4% very similar to the 43% margin in Q3 2020 and to the average of the first half of the year.
What type of roles during these years.
Words really failed to describe the impact that stallion has had during this time.
We're all incredibly lucky and grateful to have been able to count on him over the years.
Fortunately Stellular will remain closely linked to Mercado Libre as a formal advisor to the company and its board of directors, allowing us to continue to benefit from his continued advice in the future.
As we previously stipulated in our company's executives succession planning process. We're also very pleased to announce that at Ian Sharfstein will take on the role of executive Vice President Commerce.
Many of you already know are a from his time, leading our strategy and corporate development teams and more recently he has been the driving force behind the build out of our logistics network a T differentiating aspect of our business today.
Ah Rio has been working closely with Stelvio for the past few years and will continue to do so in the future.
This is a bittersweet feeling that I have making the announcement.
But on behalf of everyone that Mercado Libre, we will Miss having style you involved in day to day operations and are at the same time pleased that we can transition this leadership position through an in house process highlighting the depth of internal talent, we have at the organization.
We are all very confident that under Odm's leadership or commerce operation will continue to thrive.
In closing I'd like to reiterate that our mission to democratize Commerce and financial services in Latin America remains at the forefront of our minds, even as we begin to see positive indications that we are exiting the grave as part of the pandemic throughout the region.
We continue to include and care for the communities around us through the expansion of our business.
We had another quarter of consistent robust results and in parallel.
Continue to plant seeds for our next growth avenues across the business and geographies, where we are present.
We are excited about the opportunities we have in front of us that will allow us to both build upon our current accomplishments and further innovate as we continue to focus on our long term growth strategy.
And finally.
So so far we have not found any anything to be concerned about the deal with as we said over the smart devices, we sell.
We continue to work with them.
Normally.
And then with regards to Egypt short perceived shortages.
And so far we have been able to continue selling all of our devices. We do have some concerns smart pass if there is some shortage there.
Occasionally that who will sell less devices that we will be able to sell it there was no Jordan.
0.2 would not be able to.
Dana selling devices.
That'll be our concern.
On an inventory Bob I think the global reality is well known to everyone. What we've done on our end is we've started working with our merchants.
And.
The <unk> business also additionally allows us to try to identify inventory gaps and try to step in as merchants of record ourselves and we started working with them towards the holiday season, a lot earlier than we ever have before I would say at the beginning of this quarter.
So the situation is the one well known to everyone. What has been under our control. We've tried to frontload a lot of the preparation inventory step in with one P and we like the amount of selection and the depths of selection we have for the upcoming shopping season, given the overall.
Reality.
No. That's very helpful. Thank you very much.
Our next question comes from Richard Cathcart with Bradesco. Your line is open.
Okay.
Alright, thanks, very much for taking my question.
Just one on the digital account TPP.
For the first time here, but I think you know got.
Pretty aligned with the wallet CTV previously.
The last few quarters its been running between three and $3 5 billion this quarter, a big jump to five and a half billion. So perhaps you could just give us a little bit more information about what the drivers of that.
The driver of a big jump quarter on quarter.
So we started to disclose their digital account PPV. It is similar to what were disclosing in the past, but it has to come out.
It includes all of the wallet payment, but not QR code payments pure code payments, who are disclosing on the acquiring side of the equation. So we did.
Macquarie and then what we are adding is card transactions. So.
PPD was $5 5 billion as I said it was growing at over 100% year on year in.
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Look at currencies.
Does that answer your question Richard.
Yes. Thanks.
Thanks, very much Scott.
Thank you. Our next question comes from Stephen Ju with Credit Suisse. Your line is open.
Okay. Thank you so much so.
Okay, you mentioned in your prepared remarks.
An increasing percentage of items on free shipping.
I have to say if I can get some clarification on that comment do you mean that there's just a greater number of skus on our site, which qualify for free shipping or that you're underwriting.
I guess, a greater amount of free shipping subsidies.
Project Crystal clear thank you.
Thank you. Our next question comes from Marcellus Santos with JP Morgan Your line is open.
Hi, Thank you for taking my questions I have two the first is the reacceleration of active payer additions I know you're focusing more on fintech users now, but the master appears to have active players.
Was a big jump this quarter. So could you. Please just talk a bit of what's happening and what have you done to for that to happen I'll comment on the market and the second question is.
Regarding the potential impact of new regulations in Brazil regarding our prepaid cards is that a negative to you or could that be a positive because you spend less how can we frame that.
Thank you.
Okay.
Hi, Marcelo let me start with the second question.
Yes Beth.
As to the potential <unk>.
In regulation.
But.
No.
Okay.
<unk> banking analyzing putting a cap on interchange fees for prepaid card, we do issue prepaid card and this could have an impact.
There are two different in terms that they are talking about them.
Andrew with regard to consumer grade, we would have had a very good quarter I think for all of the cave fronts I think our cash flows.
The all three of them have been profitable in all three markets. So in the nine different markets. We're in.
We were able to have good profitability.
I've also been able to significantly increase not only the portfolio, but the number of loans outstanding.
The number of offers outstanding door there is.
6 million people with offers for grades during the quarter. So so far we have we are very optimistic with how the product is evolving.
Yeah.
Sure Andrew on Brazilian.
Interest rates.
We are a company that will strive to not have to pass on increased.
<unk> structures to consumers where possible.
So the first steps, we're taking is how do we try to improve our funding costs and in that sense. The financial institution license that we have been granted in Brazil has been instrumental because it does really gave us access to cheaper funding sources from that.
In financial institution.
So I think the idea is first and foremost to try to improve cost structure and to avoid as much as possible passing on increased fees on the marketplace to merchants, we might have two around the edges on certain types of credit pass on some of that cost, but again, we will do whatever we can to Ava.
Boyd the impact of passing that onto consumers while at the same time trying to manage our bottom line goals.
Yeah.
Very helpful. Thank you both.
Our next question comes from Easements EMS guys with Goldman Sachs. Your line is open.
Yes, maybe just piggybacking on the last question if you could.
And then a little bit on the funding strategy for credit at all how you see that evolve from here I think I'm on slide I had already commented on that earlier this year, but I was just curious that given that Canadian it's been growing even faster than that expected how do you see sort of off.
<unk> balance sheet versus on.
Evolving in the different sources that you're using and maybe how you see it involving into 2022.
And and yeah. Thank you for disclosing the the.
The Fintech uses it's very helpful. I was curious I'm not sure if I'm thinking about this the right way, but if you could talk about the intersection that you have between the.
31.6 million Fintech fin tech users.
The overall meli uses or sorry in the and the active buyer you said you have some which I think worth 37 38.
Shortly.
So on credits I think we continue to execute on the plan. We've had all along we've signed incremental deals with some of our banking partners in different markets for the SPV is the <unk> that we used to fund that.
We're on track to exit the year within our objectives of having almost half of the credits already coming from third party funding and going forward given the immense potential in the credit book and you can see the Q on Q and year on year growth in the size of the credit.
Book, It's phenomenal.
We will continue to open outside windows for funding Additionally, and tying into the previous answer the financial institution in Brazil also allows us to issue letters financier does set the base and whatnot, which are also very very efficient way to fund.
And the credit book as it continues to grow.
The wallet.
Payments online Inapt boring store transferred withdraws consumer merchant grade borrowers.
You serve in tech centers Fintech active products, such as the management, but we have not including the metrics is people who are pain at that.
We all of people, who have pain at a check out I think I forget and not logging into logging into a convention somewhat of a power user. So the number of the total number of fire.
Mark how far would be higher and we're not into windows.
Okay. Thank you.
Thank you and our next question comes from Ah Deepak Mackey Bannon with Wolf Research your nanny shopping.
Thank you for the question prank on for Deepak here. So I wanted to start can we talk a little bit about fulfillment in Brazil, you talked about new common centers that would work for you.
Curious, where we're at with regards to the ideal model looking for what kind of areas you have to build out and how you should think about some of the mountains Margaret monetization plans from sellers and then beyond that can you talk a little bit about your expectations for investment levels in the holiday season, both a on the you know in regards to.
Stepping up spend on marketing or other customer acquisition programs and then.
Inventory to our fulfillment centers at times also increases and so from a margin perspective. It typically is a weaker quarter.
And then in terms of incremental costs and working with merchant.
I don't see that there's any material cost aspect there I think the way we've tried to manage around that has been to work with the merchants from a lot earlier on to try to plan and secure inventory and then yes. It is very likely that we will step in with more of our one P business in the fourth quarter and the one.
Business at this scale, it's at now which is phenomenal improvement if you look at year over year, and how fast that business has grown but at this scale from a margin perspective it still is.
Detrimental to margins versus a three P sale and so as mix naturally turns a little bit more towards <unk> in the fourth quarter that also typically delivers a structurally weaker margin during that quarter.
Thanks, so much for the congrats on a quarter.
Cohesive go to market in sales strategy, because we had a lot of product focus as we tried to shift to dividing merchant and individuals within how we view the market. The idea is to be able to think from the consumer backwards and to be able to more iffy.
Actively inefficiently cross sell the entire product within the Mercado Libra, a universe, which could also include marketplace and content offerings that we have based on the consumer segment and less so on the individual products.
That makes a lot of sense. Thank you all the best.
Thank you. Our next question is some marching song.
T I G. Your line is open.
Great. Thank you for taking my questions.
Just two for me.
Hold on Fintech look.
Looks like the the.
The takeaway might of uncompressed a little so it was that was that due to the spread compression that you're alluding to Pedro and and if so could you maybe to talk about with a little more granularity, which which revenue.
Might be more impacted and others and then the second question just on the on the third quarter.
It looks like it was a bit of a.
Intension was to say that those nearly 32 million users.
Our users that only fall into that bucket because of Fintech usage.
So that was regarding to <unk> question.
Okay.
Well that does it for me. Thank you both.
Thank you. Our next question comes from Jan Thompson with autonomous.
Hey, guys.
I think you mentioned earlier the fulfillment as a percentage of total deliveries was 30%.
In all markets, obviously, I know that Mexico typically lead to that in.
In Brazil somewhere in the Middle do you have the breakdown by country.
Again like you've given on previous calls by chance.
Okay.
Yes, I think what we've disclosed this time around is the overall level I think your assumptions are fairly right.
But we didn't give out any of the country by country fulfillment levels fulfillment continues to trend in the right direction and hence that's also tied to my comment on the continued conviction behind investing in more warehouses as more and more inventory comes in I think what we didn't answer there was the monitor.
<unk> part of that question.
We we will introduce gradually and cautiously, but we will introduce incremental monetization to sellers using our fulfillment services because we feel that there is significant value add to these users.
The consumer side of our credit business, we have two main products. The first one is how similar to buy paint buy now pay later, what we offer is purchasing loans. These are loans, where people pay in installments typically between between two installments in 12 installments and usually charge an interest.
For those only in Mexico, we have started offering the first 30 days for free. So if you want to pay 30 days later, you're going to do it for free but its basically advent buy now pay later loan where we charged interest.
Given the right conditions in Latin America and to that we have recently added personal loans, which is money with a positive to the wallet in the Mercado Pago wallet users are free either.
Use it anywhere or to withdraw it to their bank account or through an ATM. So those are the two products. We are very excited with the growth of the.
The second.
The second one.
But we are not.
At this stage disclosing specific percentages.
Our country details on top of those two consumer.
The third one is a quake, we launched a credit card.
A couple of quarters ago, and we are excited with the initial growth.
Okay. Thank you.
And Sir I'm, not showing any further questions in the queue.
Great. So thank you everyone for listening in.
We look forward to giving you a full year and a wrap up of Q4, when we announce those numbers until then happy holidays to everyone at Mercado Libre, we will diligently be working through the holiday season to make sure everyone parcels arrive in time and almost certainly with free shipping. Thank you.
Thank you and this concludes today's conference call. Thank you for participating and you may now disconnect.
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