A popular mobile app that allows users to send money to their friends has just made a huge announcement regarding cryptocurrency.
Venmo which is owned by Pay Pal just announced that they will start allowing their credit card users to use their cashback from purchases to buy cryptocurrency.
The new promotion is called “Cash Back to Crypto” and will allow users to use their 1% to 3% cash back from purchases to buy Bitcoin, Litecoin, Ethereum, and Bitcoin Cash.
Venmo started to offer credit cards to users in February and now with their new “Cash Back to Crypto” promotion more people are signing up for their credit cards.
The days of cryptocurrency only being useful on the dark web are long gone and the days of cryptocurrency being useful in everyday life is starting to become more of a reality.
Venmo will let credit cardholders automatically buy cryptocurrency with the cash back they earn and says there will be no associated transaction fees (@sarahintampa / TechCrunch)https://t.co/AW88OjbuLBhttps://t.co/Ug8LW7oK3Y
— Techmeme (@Techmeme) August 10, 2021
Venmo is expanding its cryptocurrency offerings https://t.co/ELMEQ6p0tM
— Bloomberg Technology (@technology) August 10, 2021
Fortune covered the story and had these details to add:
PayPal-owned mobile payment service Venmo announced Tuesday that it would let its credit card users buy cryptocurrencies using cash back from purchases.
The “Cash Back to Crypto” service is live as of this week and enables Venmo credit card users to use the 1 to 3% cash back received from purchases on the card to buy Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
To enable the new feature users can select the rewards tab on the credit card home screen in the Venmo app and tap “Get Started.” Customers can also set up automatic monthly conversions from cash back to cryptocurrency through the app. From the rewards tab, users can turn automatic monthly conversions on or off or change the type of cryptocurrency they’d like to purchase that month.
All crypto purchases associated with the feature will have no purchase fees as the conversion fees for swapping assets are built into a monthly transaction statement.
Venmo to allow credit card holders to automatically buy cryptocurrency with their cash back. Unlike when buying cryptocurrency directly, these automated purchases will have no transaction fees associated with them https://t.co/aiFdJTRRju
— Monica Jasuja (@jasuja) August 11, 2021
Bloomberg covered Venmo’s big announcement too:
PayPal Holdings Inc.’s Venmo is expanding its cryptocurrency offerings just months after allowing the digital assets on its platform.
Venmo created a new “Cash Back to Crypto” offering that allows credit cardholders to automatically buy crypto from their Venmo account using cash back earned from purchases, the company said Tuesday in a statement. The crypto purchases made using this option won’t have any transaction fees, but there will be a cryptocurrency conversion spread built into each monthly transaction.
In April, PayPal said it would allow users of the Venmo app to buy, sell and hold cryptocurrencies, opening the company’s platform up to these digital assets. Other finance firms and startups have also started offering more crypto options, with Renaud Laplanche’s Upgrade Inc. introducing a Bitcoin rewards card in July.
“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,” Darrell Esch, a senior vice president and general manager of the Venmo app at PayPal, said in the statement.
— michael angelo adigue (@AdigueMichael) August 12, 2021
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