PayPal Subsidiary Venmo Introduces Crypto Purchases with Cash-back Options

Venmo credit card holders will enjoy buying cryptocurrencies using the recently unveiled cashback option. The PayPal subsidiary seems confident in its decision to offer services involving digital currencies.

PayPal’s Openness to Cryptocurrencies

Venmo recently integrated a new Cash-back to crypto service as an option for its Customers. According to the company, the option will enable cardholders to buy crypto automatically via their Venmo account using cash earned from their monthly card purchases. Furthermore, Venmo will charge zero transaction fees for cryptocurrency acquired via the cashback option.

Darrel Each, the GM of Venmo’s PayPal application, said, 

“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 GM expressed his delight on the milestone, stating the option provided new ways for Venmo cardholders to utilize their funds diversely. He is confident that involving Venmo credit cards with crypto spells success for the platform at large.

PayPal and Crypto

On Venmo, users will get the opportunity to buy and sell four cryptocurrencies, namely bitcoin, bitcoin cash, Ethereum, and Litecoin. PayPal had announced its users could buy crypto via Venmo back in April. PayPal also formed a partnership with Paxos Trust Company, a certified crypto services provider, to offer cryptocurrency services to its users..

Additionally, PayPal now allows its US client base to make settlements on goods and services with crypto, as a merchant option. The move encouraged several other financial institutions to dive into the digital asset business like Suncrest and Renaud Laplanche’s Upgrade Inc.

Other financial brokerage service companies like Robinhood and Square have also shown interest in exploring aspects of the cryptocurrency market.

Banks Considering to Offer Digital Currency Custody Services

According to crypto custody firm NYDIG, more banks may very well get into the cryptocurrency service provision group. Reports suggest banks are wary of how frequently people transfer funds to crypto exchanges, and they would also like a seat at the table. 

NYDIG President Yan Zhao stated that the cash movement to exchanges fully indicates people’s interest in BTC continues to grow.

Morgan Stanley, JP Morgan Chase, and other financial institutions have taken the step to strategize on how to offer crypto asset services.