Nubank: Mercado Pago Competition
Former Executive at Nubank
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Nubank: Mercado Pago Competition(September 1, 2025)
Former Executive at Nubank
Interview Transcript
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I want to ask about Mercado Pago in two areas, Brazil and Mexico. Given how far ahead Nubank is in Brazil, do you think Mercado Pago can make major inroads in credit in Brazil? Secondly in Mexico, I hear people saying that Mercado Pago is a major threat to Nubank. How do you see that market evolving?
Once they realized this, Mercado Pago began focusing on their underwriting process. Initially, they used a traditional method similar to conventional banks, relying on typical variables from credit bureaus. They weren't utilizing alternative scoring methods like Nubank, which employs machine learning models that analyze various variables. Nubank uses multiple random forests examining different data sets and features, constantly competing to predict payment behavior better. Mercado Pago started adopting this approach in 2023, hiring data scientists and data architects to build and train these models. Slowly but surely, they began to grow.
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