Both fintechs stand to benefit as cryptocurrency becomes more popular, and market downturns are often a buying opportunity in hindsight.
Over the years, MercadoLibre has slowly integrated crypto into its ecosystem.
Then in 2018, the company partnered with BitPay in Brazil, enabling crypto-powered purchases of MercadoLibre gift cards from within the BitPay wallet.
During the Q1 earnings call CFO Pedro Arnt noted two reasons for this: First, it’s part of the company’s treasury strategy, as management believes Bitcoin is a good long-term store of value.
In April 2021, MercadoLibre doubled down on crypto, launching a new real-estate platform that only accepts payment in Bitcoin.
Notably, Amazon is one of MercadoLibre’s largest competitors in Latin America, but it doesn’t have a digital wallet to rival Mercado Pago.
That’s why MercadoLibre should be at the top of your watchlist, especially during downturns in the crypto market.
Square divides its business into two parts: the seller ecosystem and the Cash App ecosystem.
Monthly active users skyrocketed from 7 million in 2017 to 36 million by the end 2020 — a compound annual growth rate of 72%.
During 2020, more than 3 million consumers traded Bitcoin through Cash App, driving engagement with other services as well, like the Square Cash Card and direct deposit.
Here’s the big picture: As Bitcoin has become more popular, Cash App has become more profitable.
But if Bitcoin comes roaring back, Square’s business should benefit just as it has in recent years.