Mercado Libre, the Latin American e-commerce company, has launched a token in Brazil for crypto cashback rewards on purchases, and to pay for goods on its platform.
The Ethereum-based token called the MercadoCoin is tradable through the company’s digital payments platform – Mercado Pago. This initiative is part of its loyalty program which is designed to attract and retain customers. The coin was developed in partnership with Argentine fintech and crypto specialist Ripio – the custodian and the exchange behind the cryptocurrency’s operations.
The MercadoCoin will initially be available as part of a loyalty program for selected users of Mercado Libre’s platform in Brazil. Fernando Yunes, the senior VP of Mercado Libra in Brazil, said there will be a gradual roll-out for other Latin American markets. He said there is no definitive timetable. Yunes shared that future launches will largely depend on the evolution of the ecosystem and the pace of adoption of the token in Brazil.
Customers have the advantage as Mercado Coin does not expire and is cumulative. They will receive the token as cash back when purchasing selected products on the platform. This shows Mercado Libre’s plan to leverage the currency through loyalty and discounts. Besides, users of the Mercado Pago digital wallet and payments app can buy and sell cryptocurrency. The Mercado Coin will initially be worth USD 0.10. The value will fluctuate as per the supply and demand. It should be noted that Mercado Coin has no formal pegging to regular currencies like the dollar or the Brazilian real.