MEXICO CITY, May 21 (Reuters) - Latin American

e-commerce giant MercadoLibre's ( MELI ) fintech arm, Mercado Pago,

announced on Tuesday that it will apply for a banking license in

Mexico in its bid to become the largest digital bank in the

country.

The announcement makes Mercado Pago the latest online firm

looking to expand its offerings in the increasingly crowded

market.

Brazilian neobank Nubank, which already has 7 million

clients in the country, applied for a license to operate as a

multiple banking institution last year. Meanwhile, London-based

Revolut obtained a license of its own in April.

The license would allow Mercado Pago to provide services

such as savings and checking accounts, certificates of deposit

(CDs), commercial loans and mortgages in the country.

In Mexico, Mercado Pago currently offers credit and

debit cards, transfers from abroad, interest on funds stored in

its digital wallet as well as personal and small-business loans.

"We already offer services similar to traditional banking

but in a digital, inclusive and efficient way. Now we want to

formalize it and become the largest completely digital bank in

Mexico," said Pedro Rivas, Mercado Pago's country head, in a

statement shared with Reuters.

Founded in 2003, Mercado Pago operates across Latin America

and logs more than 15 million transactions a day.