Circle, a global financial technology firm that provides payments and treasury infrastructure for internet businesses, has announced a partnership with Mercado Pago, a leading digital payments platform in Latin America, to offer USDC, a stablecoin backed by the US dollar, to Chilean customers.
This partnership will enable Mercado Pago users in Chile to access USDC through Circle’s platform, which provides APIs and SDKs for seamless integration of stablecoins into any internet application. Users will be able to buy, sell, hold, and send USDC within Mercado Pago’s app, as well as use it for e-commerce transactions, peer-to-peer payments, and cross-border transfers.
What is Mercado Pago and what it does?
Mercado Pago is a digital payments platform that operates in 18 countries across Latin America, including Argentina, Brazil, Mexico, Colombia, Peru, and Chile. It is part of Mercado Libre, the largest e-commerce company in the region. Mercado Pago offers a variety of payment solutions for online and offline merchants, such as QR codes, point-of-sale devices, prepaid cards, and mobile wallets. It also provides financial services for individuals and businesses, such as credit lines, investments, and insurance.
Mercado Pago has over 70 million active users and processes more than 2 billion transactions per year. It is one of the fastest-growing fintech companies in Latin America, with a 70% year-over-year increase in total payment volume in 2022. It aims to democratize access to financial services and promote financial inclusion in the region.
What does this partnership mean?
This partnership means that Mercado Pago users in Chile will have access to a new form of digital money that is stable, secure, and interoperable with the global financial system. USDC is a stablecoin that maintains a 1:1 peg with the US dollar and is backed by fully reserved assets held by regulated financial institutions. It is issued by Centre Consortium, a collaboration between Circle and Coinbase, two of the most trusted companies in the crypto industry. USDC is supported by hundreds of platforms and applications around the world and has over $25 billion in circulation.
By integrating USDC into Mercado Pago’s app, Circle and Mercado Pago aim to provide a better payment experience for users and merchants in Chile. Users will be able to enjoy the benefits of USDC, such as low fees, fast settlement, global reach, and transparency. Merchants will be able to accept USDC as a payment option and increase their sales potential by tapping into new markets and customers. Both parties will be able to leverage Circle’s platform to access other features and services related to USDC, such as yield generation, lending, borrowing, and swapping.
This partnership also represents a milestone for the adoption of stablecoins and crypto assets in Latin America. Chile is one of the most developed and stable economies in the region, with a high level of internet penetration and digital literacy. However, it also faces challenges such as inflation, currency depreciation, capital controls, and banking restrictions that affect its financial system. By offering USDC to Chilean customers, Circle and Mercado Pago hope to provide an alternative solution that can enhance financial freedom and innovation in the country.