They are everywhere. Every Argentine has a Chinese self-service nearby. In fact, a major company made a survey and found that an inhabitant of the City of Buenos Aires has one of these businesses less than two blocks around on average.
Until last year, these neighborhoods did not have the possibility of accepting credit or debit cards, which was a disadvantage compared to supermarket chains.Even less, with QR codes, a very widespread modality in China. So that, presumably, the owners of these shops were going to have a very short learning curve if they went ahead in this modality.
In other words, they would be the perfect partners for the massification of this system, which is why Mercado Pago did not delay in creating an ingenious campaign exclusively directed at Asian self-services.The key: closeness
In August, four months after introducing the QR codes, Mercado Pago launched an ambitious "seduction operation" to associate the owners of Asian self-service stores. He observed that many of them do not read in Spanish.
"The brochure design and delivery proposal designed especially for these merchants was a strategic action, considering that we knew that QR codes are massive in China," says Paula Arregui, Senior VP of Mercado Pago, to iProUP.According to the directive, they chose "to work together to develop a value proposal that meets their needs".
"To implement it, we sent them a kit with information in two languages on how to collect a QR code and Mercado Pago services that could help them continue to strengthen their business," the directive completes.
In this way, the company distributed instructions with explanations to accept not only QR, but also Mercado Point. This device allows to pass credit and debit cards and is connected by Bluetooth to a cell phone, to carry out the transaction through the Mercado Pago app.
According to Arregui, "the rate of acceptance of the service has been very high in this type of commerce, to such an extent that the growth of the use of QR codes as a collection method is exponential"."The most valued benefit is that they do not pay commission if the customer pays with a debit card or a balance in the Mercado Pago account, which represents a great advantage over the traditional electronic terminal", he adds.
The penetration strategy, moreover, began with a kind of "game" to capture business. The idea was to join the initiative, print the QR code, attach it to the box and send a photo to check it. Those who did took $ 100 of credit in the account.
Beyond its offline efforts, the company communicates with merchants online and from a closer formula.
As iProUP learned, Mercado Pago opened a WeChat channel, an application known as the "Chinese WhatsApp", which became the main channel of contact with merchants.
Through this app, the company advises on its tools, publishes news and promotions, and explains how its products work, also in Chinese language.More benefits
In addition to accepting card charges with QR or the Point device without maintenance costs, the company offers other additional advantages that were very welcome by the merchants.
"They go to receive the money in their Mercado Pago wallet, free of charge and with immediate availability, in turn, there are lower fees and payment terms, and it speeds up the process in the boxes, in which they usually have queues," remarks Arregui.The executive adds that the company directs public to these premises and allow them to increase the average ticket thanks to the promotions that it motorizes.
In this sense, every time you pay with QR, the virtual wallet of Mercado Pago invites the user to immediately participate in a discount: you only have to shake the phone to participate.
In this way, you can instantly earn discounts of between 20% and 60% on your next purchase at any of the adhered sites, ranging from service stations and fast-food stores to supermarkets and pet stores.
"Another benefit is that merchants invest their account balance in Mercado Fondos, obtaining high interest rates without immobilizing their money," he adds.
Also, Arregui adds another point of importance: "By having your money digitally, there are fewer exposures to theft and from the same account can pay suppliers, closing the circuit of digitizing money without using a bank account."
The strategy was a success: there are already 2,500 Chinese self-service shops that accept Mercado Pago. Just under half of the 6,000 nucleated in the Federation of Chinese Supermarkets and Associations.Great bet
Mercado Pago today is more than just a subsidiary of the giant commanded by Marcos Galperín. Indeed, the fintech division today "is bigger than Mercado Libre e-commerce," according to Arregui herself in an interview with iProUP."We serve it (to Mercado Libre) in its collection processing needs, as well as any website in the region that wants to use our platform on its own page," the executive explained.
In 2018 alone, Mercado Pago registered 336.8 million transactions, representing an annual growth of 64%.
In addition, it accumulated a whopping US $ 17.5 billion in transaction money - adding operations in Argentina and Brazil - which meant an increase of 48% year-on-year.
"When we talk about e-commerce, if one seeks to reflect how much it represents in transactions in the retail segment, today it is around 4% to 6%, depending on the market." The physical world is, in this sense, the one that opens doors to a universe that is huge for us, "Arregui assured iProUP.
Precisely, the QR burst with force during 2018 in multiplicity of shops of all sizes and even in stands of craft fairs. But Arregui highlights the importance of Chinese supermarkets."We are penetrating with an impressive force. They are among those who help us the most to evangelize," he admitted.
In this way, businesses earn, since they access more collection options and without the monthly expenses of POSNet terminals. Customers too, because they have more payment options. And they do not get their candy back.