May 15, 2021

Latin American e-commerce giant Mercado Libre starts accepting cryptocurrencies as a means of payment

Mercado Libre (MELI), the largest Latin American online marketplace, has begun accepting cryptocurrencies as a medium payment. The company has not yet made direct payments on real estate transactions (and this is the main direction of MercadoLibre), however, it recognizes cryptocurrencies as a legal way to pay for real estate.

Mercado Libre, whose capitalization is $ 81billion, is the second largest company in South America and operates in 18 countries, including Brazil, Argentina and Mexico. Mercado Libre also owns Mercado Pago, a digital payment system for online and offline transactions, as well as the logistics platform Mercado Envios. Today Mercado Libre offers its clients houses, condominiums, land and commercial properties.

More than 300 real estate agents took part in the Mercado Libre webinar, explaining the basic principles of cryptocurrencies and their potential impact on the real estate market.

As in the case of real estate that is for salefor US Dollars, Argentine Pesos or Brazilian Reals, the sale is processed outside the Mercado Libre platform. After choosing an object, the buyer contacts the real estate agent and asks to carry out the transaction in cryptocurrency at the exchange rate at the time of its execution.

Juan Manuel Carretero,Mercado Libre, commercial manager for vehicles and real estate, believes that in the future, cryptocurrency will be one of the payment methods offered on the site by default:

"Probably, as cryptocurrencies spread, this will no longer be a separate section, but one of the payment options, like any other."

Mercado Libre deals volume is 25.4% of allsales through e-commerce platforms in Latin America. Sales are expected to reach $ 25 billion in 2021. Argentina may eventually become an excellent platform for the introduction of cryptocurrencies due to galloping inflation and falling GDP. Given the restrictions under which citizens of the country can only buy the equivalent of $ 200 in foreign currency, cryptocurrencies have great potential to grow in popularity in the country.