Mercadolibre, one of the largest online retailers in Latin America, has begun to roll out cryptocurrency trading services to some of its customers, and plans to expand this test in the coming weeks. Mercadopago is the platform’s native payment service that will allow these customers to buy, hold and sell cryptocurrencies directly from the platform. The pilot will start in Brazil and may be expanded to other countries in the future.
Mercadolibre’s involvement in encryption services
Mercadolibre, the largest company in Latin America, has begun to include cryptocurrency services in its platform. Now, Mercadopago users will be able to use Mercadolibre’s platform to buy, sell and hold cryptocurrencies. This is a logical step for the company. It acts as an intermediary between the company that provides products and services on the platform and the customers who consume those products and services.
Earlier this month, the trial operation of the service has been quietly launched to some customers in Brazil, and it is expected to continue to expand to more customers in the next few weeks. Mercadolibre is considering extending this test to other markets in the future, but has not announced any news on this topic. Tulio Oliveira, vice president of Mercadopago, stated when using cryptocurrency as part of its business model:
Before deciding to enter the cryptocurrency, we take time to learn and learn. This has the potential for future transformation and opens up a new path for us.
Flirting with encryption and restrictions
The company has been interested in cryptocurrencies for some time and has invested in cryptocurrencies before. Mercadolibre purchased $7.8 million worth of Bitcoin (BTC) in the first quarter of this year and disclosed the news when it announced its first-quarter financial results in May last year. The company’s co-founder and CEO Marcos Galperin has personally invested in crypto companies like Ripio, and he has been very outspoken about how cryptocurrencies provide alternatives to traditional investments.
Regarding cryptocurrencies, Galperin stated:
Cryptocurrency will continue to exist. They play a very important role, not so much a means of payment as a means of value storage.
Perhaps according to Galperin’s thinking, Mercadolibre users will not be able to use cryptocurrency to purchase goods and pay for services immediately. But if the company wants to emulate Paypal, its next step will be to use cryptocurrency as a payment method for purchases on the platform.
Mercadolibre’s actions may make other major companies in the region also consider adding cryptocurrencies to their business models, if all goes well during this trial run.
What do you think of Mercadolibre’s inclusion of cryptocurrency services in its platform? Tell us in the comments section below.
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