When we observe sluggish growth in China’s domestic credit market—where major loan facilitation platforms and consumer finance companies are tightening their strategies and exercising cautious control over lending volumes—a stark contrast emerges: overseas credit markets are entering a period of rapid expansion. This is especially true for Southeast Asia and Latin America, which have become the primary destinations for Chinese internet finance firms venturing abroad.
Over the past two years, “A Mutual Finance Goose” has closely tracked two highly representative players in Southeast Asia and Latin America:
① Monee, the financial arm of Sea (operator of Shopee); and
② Mercado Pago’s financial services division, under Mercado Libre (Mercado).
According to their Q1 2026 earnings reports, both companies’ credit businesses continue to grow steadily, providing fresh momentum to group-level revenues.
As of the end of Q1 2026:
– Monee’s loan balance stood at USD 9.9 billion (approx. RMB 67 billion), up 71% year-on-year;
– Mercado Pago’s loan balance reached USD 14.6 billion (approx. RMB 98.7 billion), up 87% year-on-year.
In Q1 2026:
– Monee’s revenue totaled USD 1.242 billion (approx. RMB 8.4 billion), accounting for 17.5% of Sea Group’s total revenue—up from 16.3% in Q1 2025;
– Mercado Pago’s revenue totaled USD 3.977 billion (approx. RMB 26.9 billion), representing 45% of Mercado Group’s total revenue—up from 44.3% in Q1 2025.
The growth logic behind these two “e-commerce + fintech” giants is familiar to us: companies like Ant Group, JD.com, and ByteDance—all leading Chinese internet firms—followed similar paths. Yet the differentiated strategies adopted by Sea and Mercado Libre in Southeast Asia and Latin America hold significant reference value for Chinese fintech and internet giants planning overseas expansion. Below, “A Mutual Finance Goose” reviews key Q1 2026 metrics and highlights for both giants.
01 Sea Monee: Secured Financial Credit License in Brazil in Q1
From a data perspective, the fintech segment—i.e., Monee—recorded a revenue growth rate of +57.8% year-on-year, significantly outpacing Shopee’s e-commerce business (+45.1%) and Garena’s gaming business (+40.6%). This underscores Monee’s continuously rising contribution to Sea Group’s overall revenue.
Key fintech segment metrics:
(1) Loan balance: Over two years, Monee’s loan balance surged from USD 3.3 billion to USD 9.9 billion—tripling in scale. Each quarter, its loan balance has sustained high double-digit growth. During the investor call, management noted that Q1 is typically a seasonal lull for consumer spending—but this year, Monee’s loan balance still posted a +7.5% quarter-on-quarter increase.
(2) Risk performance: Despite a 71% year-on-year surge in loan volume, the 90+ day NPL (non-performing loan) ratio rose only marginally—from 1.0% to 1.1%—and has remained stable at 1.1% for four consecutive quarters. This stability suggests Monee’s risk models have withstood the stress of rapid credit expansion. Important note on NPL definition: The denominator for the 90+ day NPL ratio includes both on-book and off-book loan principal. As clarified in the earnings report, “off-book” primarily refers to channeling arrangements—i.e., loans originated by partner financial institutions on Sea’s platform.
(3) Three core growth pathways for Monee’s credit business: Sea explicitly outlined these during its earnings call:
Path 1: Deepening relationships with existing users—gradually increasing credit limits as user repayment behavior becomes better understood. Average loan balance per user rose from USD 200 to USD 250 (+25%, approx. RMB 1,670).
Path 2: Acquiring high-quality new users—launching targeted campaigns for segments with superior risk scores and stronger purchasing power, offering competitive pricing, higher credit limits, and longer repayment tenors.
Path 3: Expanding credit use cases beyond the Shopee ecosystem (“Off-Shopee”)—the most promising growth vector. In Thailand and Indonesia, SPayLater loans issued outside the Shopee platform accounted for over 20% of the total SPayLater portfolio by end-Q1.
(4) Brazil: standout growth market: In Q1 2026, Brazil emerged as Sea’s fastest-growing market. Shopee Brazil achieved the highest YoY growth among all regional markets while remaining profitable; GMV growth exceeded the market average; delivery speed improved by over one day year-on-year; three new fulfillment centers were launched; and ShopeeMall GMV more than doubled year-on-year.
Brazilian fintech (Monee Brazil): A bundled product launched last year—integrating SPayLater with cash loan limits—drove strong growth in user acquisition and repeat purchase rates. In Q1 2026, Brazil’s loan volume surpassed USD 1 billion, surging 250% year-on-year—making it Sea’s fourth market to exceed USD 1 billion in loan volume. Crucially, Sea secured a pivotal regulatory milestone: In Q1 2026, Sea obtained Brazil’s SCFI (Sociedade de Crédito ao Consumidor com Fins Específicos) license—laying a compliant foundation for launching broader, independent credit offerings in Brazil going forward.
02 Mercado Libre: Brazil Credit Business Revenue Reached USD 1.124 Billion in Q1 (approx. RMB 8 billion)
Next, Mercado Libre. Like Sea, Brazil is a cornerstone market for Mercado Libre. According to its Q1 2026 earnings report, when revenue is broken down by country:
– Brazil contributed over half of total revenue—54%;
– Mexico was the fastest-growing market, with revenue up +62% year-on-year;
– Argentina posted more moderate growth, with revenue up +23% year-on-year.
By business segment, e-commerce revenue edged down slightly quarter-on-quarter (seasonal softness), while the fintech segment bucked the trend with a +4.1% quarter-on-quarter gain. Notably, within fintech, credit revenue surpassed financial services revenue for the first time—becoming fintech’s largest growth engine. In other words, credit business now powers Mercado Libre’s overall performance.
In prior articles, “A Mutual Finance Goose” has thoroughly analyzed Mercado Libre’s credit business, covering:
① Consumer loans;
② Credit card operations;
③ Merchant loans; and
④ Auto loans.
Q1 2026 data shows: Credit card loan volume grew sharply (+105%), accounting for 46% of total credit volume—the largest share. Credit cards remain an exceptionally long-cycle investment–return business in any market. In Latin America, Mercado Libre incurred extremely high upfront costs for card issuance—including zero annual fees, up to 40 days of interest-free grace periods, interest-free installment plans of up to 18 months, and heavy subsidies for user acquisition.
[A Mutual Finance Goose]
The Shift in the Credit Market: Monee and Mercado Pago’s Impressive Growth in Southeast Asia and Latin America
The credit market is undergoing a significant shift, with Chinese internet finance firms expanding overseas, particularly in Southeast Asia and Latin America. The two major giants, Monee (financial arm of Sea) and Mercado Pago (financial services division of Mercado Libre), have reported impressive growth in their credit businesses in these regions.
Monee’s loan balance surged 71% year-on-year to USD 9.9 billion, while its revenue growth rate outpaced Sea Group’s e-commerce business and Garena’s gaming business. Mercado Pago’s loan balance reached USD 14.6 billion, up 87% year-on-year, and its credit revenue surpassed financial services revenue for the first time, becoming fintech’s largest growth engine.
The growth logic behind these companies is familiar, but their differentiated strategies have significant reference value for Chinese fintech and internet giants planning overseas expansion. Both Monee and Mercado Libre have reported impressive growth in their credit businesses in Brazil, with Monee’s loan volume surging 250% year-on-year and Mercado Libre’s credit revenue reaching USD 1.124 billion in Q1.
However, there are risks associated with rapid expansion, including increased non-performing loans (NPLs) and regulatory risks. High growth rates may be unsustainable in the long term, and companies may need to adjust their strategies to maintain profitability. Regulatory risks, such as changes in credit regulations or licensing requirements, could impact the companies’ ability to operate in the region.
Despite these risks, the opportunities for Monee and Mercado Pago to expand their credit businesses into new markets, improve their risk models, and diversify their credit products make them attractive investments. The companies’ focus on deepening relationships with existing users, acquiring high-quality new users, and expanding credit use cases beyond the e-commerce ecosystem are key strategies for sustainable growth.
In conclusion, the growth of Monee and Mercado Pago’s credit businesses in Southeast Asia and Latin America indicates a significant shift in the credit market. While there are risks associated with rapid expansion, the opportunities for these companies to drive growth and innovation make them attractive investments for experienced crypto investors.