Market giant PayPal Holdings (NASDAQ:PYPL) has dropped another piece of good news for consumers earlier today. Venmo, a Paypal owned payments platform, has enabled its cardholders to purchase cryptocurrency using the monthly cashback rewards they acquire from their Venmo credit card buyings.
Reportedly, Venmo has introduced a new update on its platform today, dubbed the “Cash Back to Crypto” program which will enable Venmo credit cardholders to acquire Bitcoin, Ethereum, including other supported crypto assets via the cash rewards they receive from credit card buying.
Say hello to Cash Back to Crypto with the Venmo Credit Card, rolling out to eligible cardholders over the coming weeks.
— Venmo (@Venmo) August 10, 2021
PayPal Owned Venmo’s CashBack to Crypto Program
August 10 has marked a massive day for Venmo and PayPal. The payments service provider company was looking forward to expanding crypto services on its platform, thus, Venmo has released a new upgrade on its platform, dubbed as the Cashback to Crypto Program. Via this, the consumers will be able to buy cryptocurrency from credit card cashback rewards. At present, Venmo is only offering Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) for trading purposes and these same four crypto-assets can be bought by consumers from the earned cashback.
The platform normally charges a transaction fee ranging somewhere from $0.50 to 2.3% of the total transaction amount. However, good news pops out to be– the ‘cashback to crypto’ program will not enforce any transaction fee on consumers. So, unlike traditional forms of buying crypto which involved paying huge transaction fees, Venmo has introduced a super unique feature that may demolish all the surplus charges for the consumers.
Venmo further noted, ‘The program will not support external wallets. But, after a consumer has completed the purchase, he or she can hold, sell digital assets within the Venmo app itself. The General Manager and SVP of Venmo also remarked that their team is excited to expand its crypto services and bring the new upgrade in operation for consumers as soon as possible.
Reportedly, the Cash Back to Crypto Program commences on Tuesday, August 10, and will be available to all Venmo credit cardholders in the coming weeks.
Paypal and Venmo’s View On The New Upgrade
The firm believes that the Cash Back to Crypto program is an easier way for newbies to enter the crypto market without worrying about market volatility much. Venmo noted that the program is more like a learning feature for customers. However, unless consumers do not make frequent transactions with their Venmo Credit Cards, the cash back-enabled crypto buyings will remain fairly small.
Experts speculate that no data is available for the number of active Venmo credit cardholders in the market. And in such a case, it is very hard to anticipate the success of the project.