Mercadolibre, Inc. (NASDAQ:MELI) Q3 2019 Earnings Conference Call - Final Transcript

Oct 31, 2019 • 04:30 pm ET

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Mercadolibre, Inc. (NASDAQ:MELI) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] Our first question comes from Stephen Ju with Credit Suisse. Your line is open.

Analyst
Stephen Ju

Thanks So Pedro there's a ton of stuff to focus on given you guys are marching in multiple different directions I'll just pick one. So the Pro mobile point-of-sale device that you guys just introduced can you talk about whether the merchants that you're targeting there are existing MercadoLibre merchants or are these a completely different set of new merchants? I was wondering what the acquisition cost for these merchants might be and -- on a go-forward basis? And when you release I guess the mini version also I guess this is probably the version that's more appropriate for the merchant that would otherwise be on the marketplace?

Executive
Osvaldo Gimenez

Hi Stephen this is Osvaldo. And thanks for the question. And with regard to Point Pro addressing is really small businesses. In the past with our mini device we were targeting mostly the long -- end of the long-tail which were mostly individuals. Now we're reaching to slightly larger businesses. And here we are -- even though we are promoting it in our platform I'd say most of the new users aren't necessarily already in the MercadoLibre platform. So we are using a sales force and we're reaching out through to marketing to the specific merchants. We have not and are not disclosing the acquisition cost but we are very comfortable that the pricing is very appropriate and the payout period is reasonable. And we also introduced a Point Mini chip which is a device that is targeted on the smaller merchants but that already has a telephone tip in it so that it does not need to be paired with a telephone. And we also introduced that during the last quarter. And these are addressing 2 different segments of the market. As I was saying before the smaller individuals and then slightly larger merchants.

Operator
Operator

Our next question comes from Deepak Mathivanan with Barclays. Your line is open.

Analyst
Deepak Mathivanan

Great. Thanks for taking the questions. Pedro can you talk about some of the initiatives that's driving use case and frequency growth on the wallet perhaps in terms of the merchant type on the in-store side? And without going into specifics how are you planning to attack this aggressively in 2020 and beyond? And then the in-store QR wallet payments is growing really fast particularly in Argentina how do you think about the monetization plan for this long term? What are the primary merchants that's seeing the usage right now?

Executive
Osvaldo Gimenez

Hi Deepak this is Osvaldo. Let me take the first part of the question. With regards to use cases and increasing the frequency of users I think the main drivers have been on the one hand adding use cases in each of the countries where we operate and the other one is adding popularity for the QR Code networks those have been growing in all of Argentina Brazil and Mexico and so the things we try to do is