The debut of MercadoCoin, a crypto to be used as part of MercadoLibre’s loyalty programme, was announced on August 18, for usage in Brazil initially. When users make online purchases, they will receive MercadoCoin in a manner similar to cashback. Customers can trade the tokens on the MercadoPago crypto market, which the business launched in late 2021, or redeem them against purchases.
With 82 million visitors and $8.5 billion in e-commerce sales in the three months ending June 30, MercadoLibre is a hybrid of retail and finance. MercadoPago, its fintech division, reported $30 billion in payment volume within the same time frame. The business, which has a sizable mobile point of sale footprint, can be compared to a combination of Amazon and Block (previously Square) for the Latin American region.
The company anticipates that the offering will be completely accessible in Brazil by the end of the month, while Reuters reports that the initial deployment is only open to 500,000 clients. MercadoLibre was a part of the association for the Libra/Diem stablecoin and has long been interested in the blockchain and cryptocurrency industries.
Loyalty is a significant real-world use for blockchain, cryptocurrencies, and NFTs at the same time. Several airlines began utilising the technology a few years ago, including Cathay Pacific, AirAsia, Singapore Airlines, and Emirates, to make it simpler to track how travel points are used. More recently, the biggest bank in Japan, MUFG, introduced a wallet for utility tokens that merchants can use as incentives. In the same vein, the KBC Bank of Belgium introduced the Kate Coin. The New York Stock Exchange’s operating company ICE developed Bakkt, one of the most vocal advocates of adopting cryptocurrency for rewards.