Colombian Rappi, an on-demand food and cargo delivery app operating throughout Latin America, now accepts crypto payments in Mexico.
Cryptocurrencies transformed into credits
According to a report on Monday, Rappi will partner with crypto service platforms Bitpay and Bitso to accept encrypted payments. The delivery company hasn't mentioned the exact cryptocurrencies it plans to accept; however, Bitcoin is likely to be on the list.
Additionally, Rappi will provide encrypted credits to customers through the app, which they can redeem later.
Sebastian Mejia, co-founder and president of Rappi, said in a statement:
“We are studying the world of cryptocurrencies with interest and believe that the future is the intersection of the cryptocurrency world with non-crypto companies. It is a first step that will allow us to learn and continue to incorporate the world of crypto into Rappi ”.
Rappi offers delivery services in 9 Latin countries and also provides financial services in Mexico, Brazil, Chile and Peru. The company plans to provide digital banking services in Colombia later this year.
In 2021, the company launched 'Pay with Rappi' in Mexico, a project that allows online payments through the PayPal platform, challenging its regional rivals Mercado-Libre and Uber.
Latin America becomes curious about Crypto
The cryptocurrency industry has been consistent and is growing by leaps and bounds, including its underlying blockchain technology, in Latin America. The trend of cryptocurrency transactions and payments is on the rise in the region, mainly because it is fast and offers low transfer rates.
When it comes to regulations regarding cryptocurrencies, Brazil, Venezuela, Argentina and Chile have approved the use of cryptocurrencies. Brazil and Argentina both have an income tax that is levied on all cryptocurrencies.
In 2014, Ecuador and Bolivia banned cryptocurrencies and their circulation within their borders. The outright ban ensured that all non-government regulated currencies were considered illegal.
It is also interesting to note that, according to statistics, the region with the largest number of cryptocurrency users in the world is the countries of Latin America. One of the main reasons is the benefits of commercial and digital stores that accept crypto payments. For example, Elektra, a Mexican conglomerate, recently announced that customers who use crypto for payments will get a 20% discount on product purchases.
