Payments mobile application Venmo — owned by fintech giant PayPal Holdings Inc. PYPL — now allows users to automatically buy cryptocurrency using their cash back.
What Happened: According to a Tuesday PayPal announcement, the feature is meant to be a new way to spend credit card rewards.
This way of acquiring crypto will not be subjected to any fees other than a cryptocurrency conversion spread built into each monthly transaction. The choice of cryptocurrency can be changed at any moment.
"The Cash Back to Crypto feature for the Venmo Credit Card offers customers a new way to start exploring the world of crypto," said Venmo senior vice president and general manager Darrell Esch.
Once it's acquired this way, users can hold or sell the crypto within the Venmo app at any time.
Venmo first introduced its cryptocurrency features to its over 70 million customers in late April, enabling them to buy, hold and sell cryptocurrency directly. Supported cryptocurrencies include Bitcoin BTC/USD, Ethereum ETH/USD, Litecoin LTC/USD and Bitcoin Cash BCH/USD. Those features are offered in partnership with Paxos Trust Company, a regulated crypto product and service provider.
BTC Price Action: According to CoinMarketCap data, Bitcoin is trading at $45,262 after losing 1.51% over the last 24 hours.
Photo: courtesy of Venmo.
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