Venmo Now Supports Crypto: Buy, Sell & Hold Bitcoin
Venmo Integrates Cryptocurrency Capabilities
Starting today, Venmo is expanding its services to include cryptocurrency support. This new functionality will allow the platform’s extensive user base – exceeding 70 million individuals – to directly buy, hold, and sell cryptocurrencies within the application. This move mirrors a similar integration previously implemented by Venmo’s parent company, PayPal, late in the previous year.
Supported Cryptocurrencies
Initially, Venmo will facilitate transactions in four prominent cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. These are the same digital assets currently offered to PayPal users within the United States.
The company initially revealed its intentions to introduce cryptocurrency features on Venmo back in 2021. Both Venmo’s and PayPal’s cryptocurrency offerings are enabled through a strategic partnership with Paxos Trust Company, a regulated provider specializing in cryptocurrency products and services.
Targeting a New Demographic
Although the features offered by PayPal and Venmo are presently quite similar, the company emphasizes that this expansion is primarily aimed at reaching a distinct, and potentially younger, demographic.
“While some user overlap exists, a significant number of customers exclusively utilize either PayPal or Venmo,” explains Darrell Esch, Venmo’s general manager and SVP. “This development provides a new avenue for customers who don’t regularly use PayPal to access the cryptocurrency market through Venmo.”
Venmo’s User Profile
Venmo’s user base tends to be younger, with a higher concentration of individuals in their 20s and 30s, when compared to the broader U.S. population. Furthermore, these users exhibit characteristics that suggest a greater openness to cryptocurrency investments. For instance, they are more likely to possess a college degree, maintain a solid middle-income status, and identify as digital natives.
A 2020 Venmo customer study revealed that over 30% of users had already engaged in purchasing cryptocurrencies or equities, a trend that accelerated during the pandemic.
Promoting Awareness and Education
Upon launch, Venmo will utilize its integrated social feed to promote awareness of its new cryptocurrency features. Users will have the option to share their cryptocurrency transactions on the feed, fostering engagement and visibility. The platform will also introduce new educational resources, including guides and videos, to address common questions and assist newcomers to the world of cryptocurrencies.
Future Integration Possibilities
Currently, Venmo does not offer the ability to use cryptocurrencies for purchases with its supported merchants, unlike PayPal. However, the recent introduction of Business Profiles – allowing Venmo users to transact with small businesses and sellers – suggests potential future integration. Venmo’s debit and credit card offerings could also be leveraged for further cryptocurrency integration down the line.
For the present time, users can engage with cryptocurrency on Venmo solely through buying, selling, and holding. Transactions can begin with as little as one dollar, funded via a linked bank account or debit card. It is important to note that the Venmo wallet operates independently from the parent company PayPal’s wallet, although exchange rates will remain consistent.
The rollout of cryptocurrency support on Venmo is commencing today and is expected to be completed for all users within the coming weeks, according to Venmo.