The news: MercadoLibre’s fintech, Mercado Pago, will shut down the Mercado Coin, its stablecoin solution backed by the US dollar, per Reuters.

The cryptocurrency launched in 2022 as a part of the platform’s cash-back loyalty program.

How we got here: Many payments companies have recently looked to stablecoin solutions as the future of payments, especially with regulatory clarity in the US ushered in by the GENIUS Act.

• Mastercard bought BVNK, a stablecoin startup, for $1.8 billion.
• Stripe acquired stablecoin platform Bridge for $1.1 billion in October 2024.
• And PayPal, Wells Fargo, JPMorgan, Fiserv, and Meta have all launched stablecoins and/or tokenized deposits or plan to release one.

These blockchain-backed payments can enable near real-time payments that are traceable, immutable, and programmable on a 24/7 basis with cheap fees: Blockchain network fees can be as low as $0.01.

Why this matters: While stablecoins are picking up steam in the US—we forecast the number of crypto payment users will leap 34.7% this year—this trend isn’t shaking out evenly across the globe. 

Brazilian customers have access to other real-time payment methods, especially state-owned Pix, which local merchants incentivize due to its low fees. This makes an offering like the Mercado Coin less attractive to consumers who benefit from other easily accessible payment types.

Implication for payment providers: While many consumers want swift payment settlement, they’re not committed to any particular payment method. 

Depending on the country, real-time payment solutions may be more desirable than cryptocurrencies. If payment providers want to spur consumer stablecoin adoption, they’ll need incentives on par or better than card-backed solutions.