A recent announcement by PayPal has revealed that Venmo users can now convert cashback rewards to crypto. The new feature will allow credit card-holding customers to be able to purchase crypto on their accounts. But they would only be able to do so using the cashback rewards earned for their spending. The feature is known as “Cash Back to Crypto” aims to expand the functionality already available on the platform.
Customers are also given the option to turn this feature on and off at any point in time. And if they choose to use the feature, then there will be no transaction fees implemented for the conversion. With customers being able to choose from four cryptocurrencies to convert their cashback into. These include Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
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The feature provides Venmo customers a way to actually explore the market. But in an environment they already know and are familiar with. Being on a platform users know how to get around will give added confidence when exploring the market for the first time.
PayPal In The Crypto World
Venmo’s parent company PayPal has always been on the frontlines when it comes to digital payments. This has been the same when it comes to cryptocurrency payments. The payments processor late last year announced that it was going to be giving its U.S. customers access to crypto checkouts. And what’s more, PayPal users can also buy, sell, and hold crypto in their PayPal accounts.
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PayPal’s commitment to bringing crypto payments to the masses has continued to forge on. With the payments giant announcing that it was finally expanding crypto payments to U.K. customers in August. This move would eventually move the company’s crypto services out of being available in the U.S. only.
Although PayPal’s history with crypto has not always been a friendly one, it seems the payment processor is now committed to crypto payments. PayPal’s CEO Dan Schulman referring to crypto as “the real deal” back in April.
Venmo Getting Its Feet Wet
This is Venmo’s first foray into crypto. Although this is not the case for its parent company. The payments platform which provides a social way to send and receive money is now testing the waters elsewhere.
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,” said Darrell Esch, SVP and GM, Venmo. “Using their cash back earned each month to automatically and seamlessly purchase one of four cryptocurrencies on Venmo.”
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This feature provides customers the ability to actually buy and sell their crypto at any point. Customers can also choose to hold the crypto they purchase in their accounts. But there was no mention of being able to transfer out crypto from the platform in the press release. So customers will have to carry all their crypto-related activities completely in Venmo.
Featured image from TIME, chart from TradingView.com