How to value Payments Service Provider that also engages in merchant/consumer lending?

Hello everyone,

I'm looking at an e-commerce company that also runs a fintech business line, for which it operates as a Payment Service Provider (PSP)and is also involved in Lending/Credits (but it is not a financial instituition per say).

For the e-commerce and PSP businesses, a DCF seems appropriate and fairly straightforward to model out. But how would you model out the embedded Lendings business?

I ask this because the Lending/Credits business is a fast growing line in the company, yet for incorporating it into the DCF, I struggle with how to model out items such as the cash outflow involved in loan origination, which it classifies as a Cash Flow from Investing Activities. In fact, the Loan Receivables/Made cash outflow this past year was greater than Cap Ex. Furthermore, I've also read that Lending businesses should not be modelled via DCF.

Company in mind is Mercado Libre. Any advice is greatly appreciated!

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