Merit Points

After you have reached the 1 Star Rank and start Mission 5, the Trade Shop will open in Jubilife Village. This place is where you can trade Pokémon locally and/or online, but it has another use; you can exchange Merit Points for a variety of items

Merit Points are accumulated through one main feature, the retrieving of Lost Satchels.

In the main menu, you will find the Lost and Found option. This will tell you that there are some satchels lost and need to be found. There are two ways to get these. First is just through standard offline play where you will find a variety of NPC tasks. Secondly is if you play online, you will retrieve quests of Satchels from players who blacked out while out in the fields of Hisui

Your task is to find the Lost Satchel out in the field. When you do, it's returned to the player so they can get their items back. Go to the Lost and Found option and you can redeem your reward which is usually an item like Exp. Candy, a PokéBall and so forth.

You then get Merit Points. These vary between 50 and 100 Points.