PayPal’s peer-to-peer vending app Venmo unveiled a program Tuesday (Aug. 10) called Cash Back to Crypto, which allows customers using its credit card to automatically buy cryptocurrency using cash back earned from Venmo card purchases.
The company said in a news release that the feature expands on Venmo’s crypto functionality, while also giving consumers more choice in how they “can spend their cash back while allowing them to start exploring crypto within the Venmo environment they know and love.”
Customers can manage their cash back to crypto purchases in real time, and can switch the cryptocurrency of their choosing at any time. There are no transaction fees, with a cryptocurrency conversation spread built into monthly transactions.
“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,” said Darrell Esch, SVP and GM at Venmo.
Customers can enable the new crypto feature by visiting the Venmo credit card home screen, clicking rewards, and then “get started” to choose the crypto of their choice.
“With seamless auto-purchasing, once customers receive their cash back into their Venmo balance each month, those funds are used to automatically purchase their selected crypto with no action required,” the news release said. “Once complete, customers can choose to hold or sell the crypto within the Venmo app at any time.”
Venmo entered the crypto world in April, allowing its 77 million customers the chance to use bitcoin, Ethereum, Litecoin and Bitcoin Cash.
“Our goal is to provide our customers with an easy-to-use platform that simplifies the process of buying and selling cryptocurrencies and demystifies some of the common questions and misconceptions that consumers may have,” Esch said at the time.
Last year, the company’s customer behavior study found that more than 30 percent of Venmo users were already using crypto or equities. Of those customers, about a fifth of them began doing so during the COVID pandemic.