No menu items!

Due to inflation, Mercado Pago adds children under 18 to your investment account

Share This Post

- Advertisement -

The rise of inflation and the impact on the purchasing power of money has become a constant concern that does not only affect adult life. According to a survey by Mercado Pago, 90% of its teenage users, between 13 and 17 years old, are worried about the loss in value of their pesos. The fintech launched the possibility to add this group to its investment functions, in order to obtain returns with its balances in the app.

- Advertisement -

This is a new bet: it is the first on the market that seeks to bring investment opportunities to minors.

From now on, and with the authorization of their parents and/or guardians, the 1.2 million children aged between 13 and 17 who already work with Mercado Pago to make payments in shops or send money, will be able to obtain a return on these funds, which can be invested in the Mutual Fund offered through Mercado Pago, managed by BIND Inversiones and supervised by BIND.

- Advertisement -

Currently the assets invested in the Mutual Investment Fund yield a TNA of 76.3%, on average over the past week well below inflation and bank loan yields, which have a TNA of 97%, but with the benefit of large liquidity. The option to invest balances in this fund is used by 7.8 people in the country.

“With this new feature, minors have access to an increasingly complete and secure experience for managing their money. Through the free Mercado Pago digital account, teenagers between the ages of 13 and 17 can have a first approach to the universe of investments, always under the supervision of their parents and/or guardians, obtaining a return on their money and having it always available. , said Alejandro Melhem, vice president of Mercado Pago.

What would a minor want to invest their money in? The survey conducted by the fintech among its users shows that 60% consider themselves a “short-term saver”, that is, they cannot leave their money for a period longer than a month. 38% of these young people today, with monthly inflation galloping above 8%, save money.

“In this context, it seems to us very appropriate that adolescents have access to financial tools that allow them to quickly learn the use and value of money,” adds Juan Aguiar, CEO of BIND Inversiones Since 2021, more than 1.2 million of teenagers use Mercado Pago to pay with QRs, split payments for trips together, send money to friends and top up transport and mobile cards.

How do they have to do to activate the investment option? Teenagers who already have a Mercado Pago account authorized by their responsible adult must click on the “Learn more” button on the main screen in the “Make your money work” section; Then they will have to provide an email from their legal representative (father, mother or guardian), who will have to accept the terms and conditions, and ask for authorization to invest their money.

Source: Clarin

- Advertisement -

Related Posts