On Tuesday, August 10, the Venmo mobile payment service announced the debut of a credit card feature that allows customers to convert their cash back rewards into Bitcoin and other crypto-assets.
Venmo credit cards may now utilize their monthly cashback to buy bitcoin of their choosing without paying transaction fees automatically, thanks to the new “Cash Back to Crypto” function.
PayPal‘s head of checkout and a general manager at Venmo, Darrell Esch, spoke on the development, saying:
“Starting today, Cash Back to Crypto will be rolling out to Venmo Credit Cardholders, offering more ways to use cashback and provide another way for our customers to spend and manage their money with Venmo.”
Customers may pick between Bitcoin, Ethereum, Bitcoin Cash, and Litecoin with Venmo’s “Cash Back to Crypto” function; the four crypto assets are presently accessible on the Venmo app.
Unlike Venmo’s regular costs for crypto purchases, which can vary from $0.5 to 2.3 percent of the transaction amount, the “Cash Back to Crypto Feature” is free.
Customers may keep their bitcoin or sell it on the Venmo app once the transaction is completed. However, transfers to external wallets are not supported by this functionality.
Cryptocurrency is becoming more mainstream.
Venmo took a significant step toward offering widespread access to cryptocurrencies a few months ago.
Venmo debuted its cryptocurrency trading service in April of this year, giving its more than 70 million users a new option to buy, sell, and store crypto assets from within the Venmo app.
Venmo can purchase crypto assets with funds already in their wallets or funds from connected bank accounts.
Venmo launched its crypto service after learning that 30% of its 70 million clients had already started buying cryptocurrencies or stocks, with some of them doing so as soon as the Covid-19 epidemic rocked the world. As a result, cryptocurrencies may be purchased for as low as $1.