In Brazil, Mercado Pago is launching a medium and small business credit line. Since the government-funded credit and support packages in many countries are deemed not enough to assist independent and local merchants amid the COVID-19 health pandemic, many turn to corporate assistance. Local entrepreneurs in Brazil have expressed concern that the financial relief from banks is not substantial because their lines of credit are shorter and more expensive. In fact, 60% of small business owners have reported that they were unable to obtain it. As a result, Mercado Pago's solution might come in as a better option for some—R$600 million roughly equates about $114 million USD.
Mercado Pago is the financial arm of Mercado Libre—an e-commerce giant in Brazil—and "this money would be destined particularly for sellers on [its] platform."
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