Venmo is set to expand its cryptocurrency services with the introduction of a new "Cash Back to Crypto" feature.
The new cryptocurrency option allows credit card users to automatically purchase Bitcoin from a Venmo account using cashback from regular purchases.
Furthermore, the new Cash Back to Crypto feature won't incur Venmo transaction fees, reducing the cost typically associated with trading between fiat and cryptocurrencies.
Venmo Delivers Credit Card Crypto Cash Back
Venmo's official blog post announcing the new feature confirms that Venmo Credit Card users can switch their accounts to purchase cryptocurrency from their eligible cashback purchases automatically.
The new feature, which further enhances the Venmo Credit Card's dynamic rewards experience, expands choice in how customers can spend their cash back while allowing them to start exploring crypto within the Venmo environment they know and love
Cash Back to Crypto is currently only available to Venmo Credit Card users. Those with an active and applicable credit card can choose to automatically receive cashback in crypto across eight different user-selected spending categories.
Venmo has weighted the categories, too, with the first selection receiving 3% cashback, the second receiving 2%, and all other sections receiving 1%.
Crypto cashback payments can come in four cryptocurrencies: Bitcoin, Ethereum, Litecoin, or Bitcoin Cash.
The converted cryptocurrency cashback automatically appears in the user's account each month. After the funds clear, the Venmo user can do what they wish.
Venmo Crypto Options Increase Bitcoin Adoption
Darrell Esch, a senior vice president and general manager of the Venmo app at PayPal, 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
But the overall message is clear: major companies are integrating cryptocurrencies into their core offerings. Bitcoin, Ethereum, and other cryptos are becoming standardized.
Adoption is increasing to the point that a cryptocurrency cashback option will become a selling point for a fiat credit card, a major shift of emphasis for the financial world, and the sign of a company listening to the shifting winds of money.
An Increasing Acceptance of Cryptocurrency
The cryptocurrency integration isn't the first move from PayPal this year. Venmo's parent company has sought closer integration with Bitcoin and other cryptos throughout the past 12 months, first allowing Bitcoin trading on its platform in 2020.
With both PayPal and Venmo integrating Bitcoin, cryptocurrency could see yet another enormous uptake in users.