Fintech Magalu, the financial arm of Brazilian retail giant Magazine Luiza, recently announced that it would start trading cryptocurrencies on its platform and app through a partnership with Mercado Bitcoin, offering for the first time this type of digital assets to its more than 37 million customers.
The feature’s release date has not yet been revealed, but initially, three tokens will be offered to MagaluPay digital account users.
In a press release, Leandro Hespanhol, Commercial and New Business Director at Fintech Magalu, said, “for many of these customers, this will be their first contact with crypto-activities and the opportunity to start investing in digital currencies, starting at R$1.”
Crypto digital wallet and card
The partnership between these companies also provides for issuing and processing cards and the payment account to allow the purchase, sale, and custody of crypto assets. The first step in the prepaid and virtual card modality will be for Mercado Bitcoin users. According to Magalu, this card will also have a credit function in the future.
“The partnership brings more usability for crypto-asset reserves and practicality to our millions of customers, who can use the card in any purchase,” says Mercado Bitcoin’s CEO Reinaldo Rabelo.
Magalu fintech emerged as an integration of the operations of three companies acquired by Magazine Luiza: Bit55, Sto,q, and Hub Fintech. Besides directing its services to the B2C public, this financial institution is responsible for the payment operation of delivery apps, truckers, and carriers of some companies connected to the retail holding.
A growing digital asset consumption trend in Brazil
The project to insert the fintech in the crypto world has been gestating since the middle of last year.
“We don’t work exclusively for the Magalu ecosystem. We are already a reference in providing financial services to more than 50 companies of all sizes,” Hespanhol said in a statement. “We are confident about our entry into this partnership with a cryptocurrency platform.”
Magalu follows a trend started in 2022 by other fintechs, such as Nubank and Mercado Pago, which also started to offer the negotiation of cryptocurrencies on their platforms.
This new product direction meets a current and growing demand from Brazilian consumers. According to the Statista Global Consumer Survey, published in November of the previous year, Brazilians follow a favorable trend to invest more in bitcoin than in stocks by 2023.