PayPal’s payment platform Venmo is expanding its cryptocurrency offerings with its new “Cash Back to Crypto” service.
“Cash Back to Crypto” enables customers to automatically buy crypto from their Venmo account using cash back earned from purchases. Using this method, the purchases won’t have any transaction fees. Instead, there will be a cryptocurrency conversion spread built into each monthly transaction.
According to Darrell Esch, senior vice president and general manager of Venmo at PayPal, customers can choose from four cryptocurrencies. Customers can use their cash back earned each month to automatically purchase either Bitcoin, Ethereum, Litecoin or Bitcoin Cash. Venmo enabled the new feature this week, and will be more widely available in the coming weeks. Esch added that this feature “offers customers a new way to start exploring the world of crypto.”
Venmo initially started providing a way for its customers to explore the world of crypto earlier this year. In April, the platform launched “Crypto on Venmo,” which enabled its 70 million users to now buy, hold, and sell cryptocurrencies on the app. With this feature, users also have their choice of Bitcoin, Ethereum, Litecoin or Bitcoin Cash. This occurred shortly after parent company PayPal started offering “Checkout with Crypto,” enabling customers to pay in select crypto.
Meanwhile, other payment services have already taken to offering crypto for money back. In April, Mastercard launched the first credit card offering digital currency “rewards” on purchases, in partnership with US crypto exchange Gemini. Users of the card could receive up to 3% in bitcoin or other cryptocurrencies on their purchases. Additionally, Visa launched its first crypto rewards card in partnership with crypto services company BlockFi in July. BlockFi Visa Rewards Cardholders can earn 1.5% back in bitcoin on every purchase. This payout then increases to 2% on every dollar spent over $50,000 annually.
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