Mercado Pago is the digital payment company that works with Mercadolibre. Recently, it announced an extension to the services it offers to Brazilian users. Customers will be able to deposit their own cryptocurrency through third-party wallets and services into their digital wallet at no additional cost.
Mercado Pago will allow deposits from third-party services
Mercado Pago is the payment processor service for Mercadolibre. It was one of the largest e-tailers of Latam and has now announced that it would be increasing the number of services related to crypto. According to the company, customers can now deposit crypto using third-party services.
In a statement sent to Portal do Bitcoin, Mercado Pago stated:
Today, you can receive Bitcoin, Ethereum, and Pax Dollar using the Mercado Pago App. Transfers within the app were also enabled last week.
This increases the functionality of Mercado Pago’s trading services, which before behaved as a closed ecosystem, with users only being able to purchase and sell crypto from within the app. Similar functionality is also used by Nubank and other companies such as Nubank which use Paxos to provide crypto services.
The functionality of adding transfers between crypto accounts inside of Mercado Pago’s platform was also requested by customers, who can now move crypto without having to exchange it for Brazilian fiat currency.
Restrictions on Withdrawals
The company launched cryptocurrency services in November but has yet to make it open to withdrawals. Osvaldo Gimenez, the president of fintech at Mercado Pago stated in December about withdrawals:
It’s just a matter of time before allowing withdrawals, we’ll then allow transfers between wallets. However, the primary goal was to allow investors to invest in cryptocurrency.
However, six months after that statement was made, there is still no way of transferring any of the cryptocurrencies available away from Mercado Pago’s platform. This company didn’t give a timeline when this would happen.
Mercadolibre partnered recently with Mastercard to take advantage of its services and secure transactions. The company announced it would leverage Mastercard’s capabilities to avoid money laundering and other related crimes on the platform.
What do you think about Mercado Pago’s extension of its cryptocurrency services in Brazil? Leave a comment below.
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