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Venmo users can now purchase crypto with their cashback

The new feature will be available to all eligible Venmo Credit Cardholders in the coming weeks

Venmo crypto

Venmo users can now purchase crypto with their cashback. Source: newsroom.paypal-corp.com

Venmo cardholders can purchase different types of digital currencies such as Ethereum, Bitcoin Cash, and Litecoin via the ‘Cash Back to Crypto’ feature.

This comes as Venmo, the PayPal-owned platform allows users to purchase digital currencies via cashback earned from Venmo credit card purchases. These will be automated purchases unlike the direct purchase of digital currencies. Users will enjoy zero transaction fees. The feature is also not a promotion and will be incorporated into the platform in the long term.

In April, the platform coined a feature that allows users to hold, purchase and sell digital currency. This was part of an investment by PayPal, the parent company.  And now, over 76 million Venmo users can access digital currency within the app. This was enabled via a partnership with a cryptocurrency regulator, Paxos Trust Company.

Venmo’s cash-back features will increase the firm’s credit card sign-ups via the cryptocurrency interlocking functionality. Venmo cardholders can currently earn cashback in eight categories. Users will enjoy a 3%, 2%, and 1% cashback on their top, second and subsequent categories consecutively. The platform adjusts the top two categories depending on the highest expenditure.

This new feature does not have transaction fees, which is similar to the PayPal crypto checkout process. Users can also turn the feature on and off as they wish.

The digital currency cashback is a way to enable new digital currency owners to penetrate the market without the worry of crypto purchases. The cashback, however, can be small for users who do not make frequent transactions with their Venmo Credit Cards.

We’ve reported that Mastercard teamed up with Penny Software.

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