Mobile payment service Venmo has rolled out a new feature to allow users to automatically acquire cryptocurrency using the cashback earned when purchasing.
With this new feature, users will gain access to different cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, without being charged additional fees.
The feature will not be active by default but once users activate it, they will be able to hold, sell, and trade their assets via the Venmo app.
Darrell Esch, SVP & GM at Venmo, referred to the addition of the feature by stating,
“The introduction of the Cash Back to Crypto feature for the Venmo Credit Card offers customers a new way to start exploring the world of crypto, using their cash back earned each month to automatically and seamlessly purchase one of four cryptocurrencies on Venmo.”
The move by the company, which is owned by Paypal Holdings, is a reflection of an increasing acceptance of cryptocurrency in the world of online payments.
Venmo first introduces crypto-related features back on April 20 of 2021, allowing users to interact with the world of crypto without having to leave the app.
With Paypal also moving further into its crypto journey but companies have doubled down, a decision that will prove beneficial to the crypto market.
An Answer To Users’ Needs
According to Paypal Holdings’ statement back when crypto functionalities were originally introduced, 30% of Venmo customers were already investing in cryptocurrency.
Now that the feature has been around for 4 months, this number is likely to be considerably higher.
The new feature is a way to allow those interested in crypto investment to regularly acquire crypto with seamless auto-purchasing, opening the doors to the world of crypto to a whole new set of potential investors.
“We’re excited to bring this new level of feature interconnectivity on the Venmo platform, linking our Venmo Credit Card and crypto experiences to provide another way for our customers to spend and manage their money with Venmo.”
With the crypto market starting to recover from some rough months and the controversy around the infrastructure bill , crypto is once again in the spotlight of major media outlets.
The implementation of crypto functionality by companies like Paypal, Venmo, and Skrill, will facilitate adoption from those who find themselves interested as a result of the coverage.
A Growing Trend In The Industry
Venmo’s decision to integrate cryptocurrencies with its platform is not an isolated incident in the payment services industry.
Paypal, its parent company, has also continued to further integrate crypto over the past months, showing its commitment to the technology.
Back on July 26, Paypal announced it was increasing its existing crypto purchase limit from $20k to $100k a week with no annual purchase limit.
In addition to this, the company also showed increasing interest in investing in crypto-related companies like Blockchain Capital and TRM Labs.
Other important members of the industry have jumped to the opportunity of offering crypto features.
In July, Digital wallet provider Skrill opened the doors to users outside the United States to access more than 35 cryptocurrencies and to hold them in their wallets months after doing the same in the US back in March.
Rupinder Singh, a Senior Vice President with Skrill’s parent company Paysafe, referred to the motivations behind the move by stating,
“After a surge in overall activity in the industry, we’re seeing more interest in cryptocurrency than ever from our digital wallet customers, both current and new. Our aim is to make it even easier for consumers to get started in crypto using Skrill or NETELLER.”
With major platforms starting to expand their crypto-related services, a larger portion of the global population will have an easier time exploring the crypto market while benefiting from all it has to offer.