Blockchain payments network Ripple is collaborating with a major crypto exchange in Brazil to launch cross-border payments enabled by crypto.
Ripple has partnered with the Brazilian Mercado Bitcoin exchange to enable local businesses to settle payments using Ripple’s “managed end-to-end payments solution,” the firm officially announced on Oct. 3.“
With the new payment tool, businesses in Brazil would be able to get “faster, cheaper, more efficient cross-border payments” across the globe 24/7 and settle payments in a matter of minutes, Ripple stated.
The first operation to target institutional customers
According to the announcement, the new product is not yet available to customers. Ripple expects that the first operation will involve institutional customers, exclusively from Mercado Bitcoin to Mercado Bitcoin Portugal.
The integration builds on Ripple’s new functionality that enables the firm to manage payments end-to-end on behalf of customers, which was introduced in 2023.
A spokesperson for Ripple told Cointelegraph that Mercado Bitcoin is expected to launch with Ripple’s payment solution before the end of 2024.
Mercado Bitcoin will use the solution to improve its internal treasury operations between Brazil and Portugal. The crypto exchange also plans to support cross-border payments for corporate and retail customers in the future.
“One of the differentiators is the use of a non-resident account, allowing users to pay directly in Reais, providing an improved customer experience,” the announcement states.
Mercado Bitcoin is a major industry player and a partner of Mastercard
Launched in 2013, Mercado Bitcoin is a major player in the cryptocurrency industry and is one of the largest crypto exchanges in Latin America with 4 million users.
Mercado Bitcoin is known for inking partnerships with high profile payment firms like Mastercard. In May 2024, Mercado Bitcoin collaborated with Mastercard to provide live transaction capabilities for Latin American and European corridors.
The exchange also previously announced a partnership with Mastercard on a Web3-focused crypto identity system in April 2023.
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Mercado’s new collaboration with Ripple aims to provide a simplified transfer through the expertise of Ripple, Mercado Bitcoin’s head of banking, Jordan Abud, said.
“At the same time, this partnership enables Mercado Bitcoin to take another step towards internationalizing its services,” Abud noted. He added:
“The possibility of facilitating this type of operation, offering lower costs and making the platform even more complete shows our commitment to customers, while expanding the portfolio of products we offer today.”
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