- Venmo just added crypto trading to its app as interest in digital currency is on the rise again.
- Users can buy and sell Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
- Venmo parent PayPal added functionality for users to checkout with cryptocurrencies on its app in March.
- See more stories on Insider’s business page.
Venmo just became the latest payments player to respond to consumers’ growing demand for cryptocurrencies by adding the ability for users to buy, sell, and hold assets like Bitcoin and Ethereum within the app.
It’s following the lead of parent company PayPal, which added crypto to its app in November 2020, and launched its checkout with crypto feature in March of this year, which allows users to pay merchants with crypto.
And they’re both entering a crowded, competitive market.
Square’s Cash App, a Venmo rival, was an early mover among traditional person finance apps, adding crypto trading in January 2018. In March, it launched peer-to-peer crypto payments, enabling users to send Bitcoin to each other within the Cash App ecosystem.
Beyond the incumbent payment giants, crypto-focused startups are emerging with Bitcoin rewards for day-to-day spending. And players like BlockFi and Gemini both plan to launch crypto-rewards credit cards this year.
It’s all a bet that as awareness of crypto broadens and consumers start accruing more value in cryptocurrencies, demand to put those assets to use in their daily spending will grow.
Getting its current users familiar with cryptocurrencies is Venmo’s primary focus, for now.
“Crypto on Venmo is a new way for the Venmo community to start exploring the world of crypto, within the Venmo environment they trust and rely on as a key component of their everyday financial lives,” Darrell Esch, SVP and general manager of Venmo, said in a statement.
Using Venmo balances or linked bank accounts and debit cards, users are able to buy as little as $1 of Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Similar to the PayPal app, there will also be in-app guides and videos answering commonly asked questions about cryptocurrencies.
“Our goal is to provide our customers with an easy-to-use platform that simplifies the process of buying and selling cryptocurrencies and demystifies some of the common questions and misconceptions that consumers may have,” Esch said.
Crypto use cases in spending and rewards are growing
Venmo saw massive growth in 2020. Its volumes were up 56% year-over-year in 2020, and it launched a slew of new products including check cashing, direct deposits, QR code payments, and business profiles.
Broadening beyond P2P, Venmo has launched a debit and credit card, both of which have rewards programs through a partnership with Dosh.
When it comes to crypto, Venmo users won’t be able to send crypto to each other, but crypto transactions can be shared in the social feed, similar to other payments on the app.
While plans for additional crypto features in Venmo are not yet clear, the app has the building blocks to compete with BlockFi, Cash App, and Gemini, be it through rewards or other spending capabilities.
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