PayPal to Allow Crypto Transfers on Venmo in United States

According to reports, nearly a year after PayPal allowed users to transfer cryptocurrencies between its platform and other wallets, the company is now launching a similar feature for its over 60 million Venmo customers in the United States. In a statement, the company stated that customers can also transfer funds to PayPal accounts, as well as external wallets and exchanges, and the new feature will be launched in May.

PayPal Launches Cryptocurrency Transfer Function for Over 60 Million Venmo Customers in the United States

In a recent announcement, PayPal has said that it will introduce a new cryptocurrency transfer option on Venmo, a social payments app, for its over 60 million customers in the United States. The company has been allowing users to transfer cryptocurrencies between its platform and other wallets for almost a year. However, the latest feature will now give Venmo customers access to other wallets and exchanges.

What is Venmo?

Venmo is a mobile payments service in the US, a subsidiary of PayPal, that allows users to make direct transactions between bank accounts and credit or debit cards. The app is popular among millennials and is used mostly to split bills or pay back friends, roommates, or family members.

PayPal’s Crypto Journey

PayPal has been exploring and embracing the world of cryptocurrencies for some time now. In October 2020, the company announced its foray into the cryptocurrency space by launching a new service that enables customers in the US to buy, hold, and sell cryptocurrency on its platform. With this service, PayPal started allowing its customers to use cryptocurrencies to shop online and pay for goods and services with participating merchants.

Venmo Incorporates Cryptocurrency

The new cryptocurrency feature on Venmo is set to be launched in May, and customers can use it to trade various cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, among others. This move will allow Venmo’s customers to use their account balances to buy, sell, or hold cryptocurrencies. They can then transfer funds from these accounts to other wallets or exchanges.

Benefits of Cryptocurrency on Venmo

With this move, Venmo customers will have access to a wider range of financial products and services. The feature can also help democratize access to cryptocurrency, especially for those who might find the traditional method of buying and holding cryptocurrencies daunting. Moreover, having access to a well-established provider like PayPal can help boost public trust in the reliability and legitimacy of the cryptocurrency market.

FAQs

1. Are there any additional fees for using the new cryptocurrency feature on Venmo?

There are no additional fees for the new feature. The rates charged by Venmo will remain the same as for regular transactions.

2. Can I transfer cryptocurrencies to other Venmo users?

No, the new service only allows you to transfer cryptocurrencies to PayPal accounts, external wallets, and exchanges.

3. Is the new feature available for international customers?

As of now, the new feature is only available for Venmo customers in the United States.

Conclusion

The introduction of cryptocurrency on Venmo is a step towards improving financial inclusivity and expanding access to cryptocurrencies for a new generation of investors. The upcoming launch of the new service in May is a testimony of PayPal’s commitment to revolutionizing the global financial industry and adopting tech-driven and customer-focused solutions.