Mercari aims to become “the most used place in the world” for Bitcoin payments: Mr. Nakamura of Melcoin | CoinDesk JAPAN

On the 15th, Mercari launched a service that allows users to purchase products using Bitcoin (BTC). Mercari users who hold Bitcoin can complete the payment by simply selecting the product they want and selecting “Use Bitcoin'' on the purchase screen.

On the same day, Keita Nakamura of Melcoin, a subsidiary that develops services related to crypto assets and blockchain, made a press announcement regarding the new features. There was a lot of interest in the media, including coverage on nightly economic news.

(Purchase procedure screen: Provided by Mercari)

Meanwhile, on the night of the 14th, the day before the press release, the price of Bitcoin rose to a record high of approximately 780 yen on the crypto asset (virtual currency) exchange bitFlyer. As the yen continues to depreciate, in Japan there is an increasing focus on Bitcoin as a means of storing value, or more simply as an investment.

Mercari's new feature is an effort to promote Bitcoin payments. Although Bitcoin payments can be expected to be useful in emerging countries with low confidence in their own currencies and weak payment infrastructure, there are strong opinions that it is difficult to see the need or feasibility in developed countries like Japan.

Can Mercari and Melcoin open up the possibility of Bitcoin payments? What are you aiming for in the future? Let's take a look at the presentation materials and Q&A with CEO Nakamura.

Developing a new user base despite headwinds

(From “Mercari” Bitcoin transaction service new function presentation materials)

In March 2023, Mercari launched a service that allows users to purchase Bitcoin using Mercari sales proceeds, and within seven months, the number of users exceeded 1 million. The company's users accounted for the majority of new account openings in 2023. Although Bitcoin rose towards the end of the year, 2023 was mostly a bear market. There is no doubt that the company has expanded the base of crypto assets despite headwinds.

(From “Mercari” Bitcoin transaction service new function presentation materials)

Moreover, the new user group was different from the traditional “investment” users. Purchase Bitcoin using the proceeds. After that, 48% of users who opened accounts sold their items and made purchases on Mercari.

“The products purchased by users (after selling Bitcoin) have not changed significantly from before, and we believe that Bitcoin is becoming part of everyday experiences.'' (Mr. Nakamura)

(From “Mercari” Bitcoin transaction service new function presentation materials)

In a survey conducted by the company of users using its Bitcoin transaction service, 83% responded that they would like to use it for payments.With the introduction of the new feature, Bitcoin can now be used as is for payments. It will be interesting to see what the actual utilization rate will be.

“We believe that Bitcoin payments will lead to a variety of new experiences. By adding money whose price fluctuates (as a payment method), a purchasing experience that is tailored to price movements will be created. Mercari, which has over 3 billion We believe that Bitcoin will be exchanged for a variety of products, and this will be a major step in expanding the means of value exchange using crypto assets.'' (Mr. Nakamura)

Global crypto asset payment market and Mercari’s size

(From “Mercari” Bitcoin transaction service new function presentation materials)

Mr. Nakamura cited examples of Bitcoin payments overseas, pointing out that “it is now available at familiar brands, restaurants, and online services.''

(From “Mercari” Bitcoin transaction service new function presentation materials)

Furthermore, based on data, he touched on global crypto asset payment market trends and stated that the market will expand from 1.3 trillion yen in 2023 to 1.6 trillion yen in 2025. We also compared data from BitPay, a pioneer in crypto asset payments, and Mercari. Mercari's GMV (Gross Merchandise Value) exceeds 1 trillion yen annually, and the number of items sold in one second, or the number of payments per second, is 7.9. In other words, by introducing crypto asset payments to Mercari, one of the largest marketplaces in the world, the company is trying to make a major presence in the crypto asset settlement scene.

(From “Mercari” Bitcoin transaction service new function presentation materials)

Although the timing has not yet been determined, Mr. Nakamura said that after Bitcoin payments, the company will also work on digital assets such as NFTs and altcoins.

(Melcoin CEO Keita Nakamura, provided by Mercari)

During the Q&A after the presentation, there were also questions about the usefulness and feasibility of Bitcoin payments. Currently, Bitcoin payments are not as widespread in Japan as originally expected, but Mr. Nakamura gave motivation to users.

“Up until now, the purpose of domestic crypto asset holders has been mainly investment and speculation. They don't want to use it for payments. Their motivation is misaligned. On the other hand, Mercari believes that users are motivated to make payments. We would like to verify this hypothesis in the future.”

Although he cannot reveal specific numbers yet, he said, “Our goal is to be the place where (Bitcoin payments) are used the most in the world, and I think we have the potential to achieve that goal.'' Stated.

In the near future, Japan may suddenly attract attention when it comes to Bitcoin payments.

｜Text: Takayuki Masuda
｜Top image: Melcoin CEO Keita Nakamura (provided by Mercari)