PayPal's Venmo Releases New Cash Back to Crypto Option for Cardholders

Paypal-owned Venmo on Tuesday rolled out a feature that would allow holders of its credit cards to automatically buy cryptocurrencies with the cashback earned on their purchases.

Cardholders will be able to buy Bitcoin, Ethereum, Litecoin, and Bitcoin Cash through the "Cash Back to Crypto" feature and will not be charged fees for the transaction, Venmo said in a statement.

The users can at any time hold or sell such assets within the Venmo app and change their choice of cryptocurrency.

The peer-to-peer payment service already allows its more than 70 million users to purchase the four cryptocurrencies through its direct buying option, which was introduced in April and carries a fee.

Adoption of digital assets has gathered pace this year, with Venmo's parent PayPal becoming one of the most active mainstream financial companies in cryptocurrencies.

©Reuters

August 11, 2021