Venmo is a mobile payment service owned by PayPal. Venmo has announced the rollout of its “Crypto on Venmo” services. Over 70 million users can buy, sell and hold 4 types of cryptocurrencies, including Bitcoin, using the popular Venmo app. The four major coins Bitcoin(BTC), Ethereum( ETH), Litecoin(LTC), and Bitcoin Cash (BCH). Venmo users can buy with minimum spending of $1 on cryptocurrency.
Users will be able to buy or sell cryptocurrency with their balance with Venmo, or a linked bank account or debit card. When it becomes available, Users can get started “by clicking on ‘Crypto’ in the Venmo menu at the top right in the app,” the announcement said.
For now, Venmo does not support peer-to-peer crypto trades or the ability to transfer cryptocurrency from one account to another. It only supports the purchase and sale of cryptocurrency using their Venmo account.
Like PayPal, Venmo is enabling cryptocurrency purchases and sales throughout most of the US but not Hawaii, where the market has some regulatory restrictions. And It’ll be only available to US customers who have verified their identity with Venmo.
Venmo says its fees on crypto transactions generally range from 1.5 percent to 2.3 percent; fees are 1.5 percent on purchases or sales above $1,000; 1.8 percent on transactions between $200.01 and $1,000; 2.0 percent on transactions between $100.01 and $200; and 2.3 percent on transactions between $25 and $100. A $0.50 minimum fee applicable to transactions between $1 and $24.99.
“No matter where you are in your cryptocurrency journey, crypto on Venmo will help our community to learn and explore cryptocurrencies on a trusted platform and directly in the app they know and love,” said Darrell Esch, a senior vice president, and general manager of Venmo.
Esch also said, “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 question and misconception that consumes may have.”
More than 30% of Venmo customers already started purchasing crypto or equities. Of these 20% started during the COVID -19 pandemic. Venmo enabled its crypto service through PayPal’s partnership with Paxos Trust Company, which PayPal utilized for its other digital assets.
Bitcoin and other digital currencies have surged in price in 2021 on the back of increased interest from institutional investors, while major companies like Tesla and PayPal have also made significant moves in the space. Tesla bought 1.5 billion worth of bitcoin earlier this year and now accepts it as payment for its cars.
