Venmo Users Can Now Buy and Sell Cryptocurrency

Need to Know

• Customers can now buy, hold and sell cryptocurrency directly within Venmo.
• Users can currently choose from four different cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
• The new capabilities also include an in-app guide to cryptocurrency.
• More than 30% of Venmo customers have already purchased cryptocurrency or crypto equities.

Analysis

Venmo is making cryptocurrency more accessible than ever.

The popular payments app has launched a series of new capabilities that allow users to buy, sell, and hold cryptocurrency directly within Venmo. Crypto on Venmo also includes in-app guides and videos that answer the most commonly asked questions relating to cryptocurrency and gives users the ability to share their “crypto journey” with friends via the Venmo feed.

Venmo customers can now click on a new “Crypto” option within the Venmo app’s top menu. They will then have the ability to buy and sell cryptocurrency using their Venmo balance, or via a linked bank account or debit card. All transactions will be managed directly within the Venmo app. Four cryptocurrencies—Bitcoin, Ethereum, Litecoin, and Bitcoin Cash—will be available for buying, selling, and holding within Venmo.

“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 at Venmo said in a statement

“No matter where you are in your cryptocurrency journey, crypto on Venmo will help our community to learn and explore cryptocurrencies on a trusted platform and directly in the app they know and love. 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.” 

The launch of crypto on Venmo comes after a survey conducted by the app, which is a subsidiary of PayPal, showed that 30% of Venmo customers have already started purchasing crypto or equities; 20% of those customers began engaging with crypto during the COVID-19 pandemic. Crypto on Venmo is facilitated through PayPal’s partnership with Paxos Trust Company; PayPal announced it would be accepting cryptocurrency as a method of payment in October 2020, as part of that partnership as well.

Both PayPal and Venmo have seen substantial growth throughout the coronavirus pandemic, as contactless payments increased in popularity. The online payments company posted two record-breaking quarters in 2020, and signed a partnership with CVS to provide QR code-enabled payments at the US pharmacy chain’s physical locations. PayPal currently has 364 million active users, while Venmo has 65 million users.