Venmo Built Crypto Trading Into Its Payments App
It's the latest payments company to offer crypto trading following parent PayPal and rival Cash App.
This story originally appeared on Engadget
With Bitcoin charging into the mainstream, an increasing number of established payment providers are embracing cryptocurrency. Today, PayPal-owned Venmo is opening crypto trading by offering members the ability to buy, hold and sell Bitcoin, Ethereum, Litecoin and Bitcoin Cash. Venmo users can purchase a digital asset starting from $1 using funds from their balance or a linked bank account or debit card. Members will also be able to track prices and access in-app guides and videos to learn about virtual money.
Related: 5 Lessons Venmo's Co-Founder Learned While Building a Twice-Acquired Company
The move sees Venmo following in the footsteps of Square's Cash App, which introduced Bitcoin trading in 2017, amid a spike in demand for cryptocurrency. Venmo says that 30 percent of its customers have already started purchasing crypto or equites, 20 percent of which began during the pandemic. But, with Venmo itself lacking a trading option until now, those users would have inevitably been forced to make those investments elsewhere. Cash App, for instance, recently noted that 3 million people bought Bitcoin through its service in 2020 and 1 millon who were new to the digital currency did so in January alone.
Venmo's parent has also made its own inroads into crypto. After opening trading to US customers last November, PayPal began allowing users to pay with cryptocurrency in March. Crypto on Venmo is rolling out today and will be available to customers in the app over the next few weeks.