PayPal-owned Venmo today launch a new feature that will allow Credit Cardholders to use their monthly cash back to buy cryptocurrency. The development is part of the broader crypto strategy of Venmo parent PayPal.
Venmo’s new “Cash Back to Crypto” feature permits users to choose Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. It will not charge any transaction fee. Instead, cryptocurrency conversion spread built into each monthly transaction.
Venmo credit card users receive 3% back on their top spending category (such as groceries or restaurants), 2% on the second most-used category, and 1% on all other purchases.
Customers can navigate to the Rewards tab at any time to turn the auto-purchase feature on or off. They can even change the crypto they would like to purchase that month.
With seamless auto-purchasing, once customers receive their cash back, those funds are used to automatically purchase their selected crypto. Customers don’t have to do anything. Once complete, customers can choose to hold or sell the crypto within the Venmo app at any time.
“We’re excited to bring this new level of features interconnectivity on the Venmo platform, linking our Venmo Credit Card and crypto experiences to provide another way for our customers to spend and manage their money with Venmo,” Darrell Esch, a general manager at Venmo.
In April, PayPal said it would allow users of the Venmo app to buy/sell and hold four types of cryptocurrencies. The new cash-back feature is rolling out to customers starting Tuesday and more widely available in the coming weeks.
