Venmo started a credit card feature that allows users to convert their cash-back rewards into bitcoin and other cryptocurrencies.
- The development is part of the larger crypto strategy of Venmo parent PayPal. The company created a business unit focused on cryptocurrencies earlier this year after the introduction of crypto trading to its customers last fall.
- The new Venmo feature is not fully crypto-supported, but it is close to it. A number of credit cards are preparing to hit the market such as those from BlockFi and Gemini.
- Venmo allows cardholders to set an auto-purchase for the cryptocurrency of their choice to be made as they receive their cash-back rewards upon making a purchase with the card.
- Bitcoin, Ether, Bitcoin Cash, and Litecoin are available to Venmo’s 76 million users. Customers cannot move digital assets off the platform yet, converting rewards to crypto to remain in the Venmo app.
Venmo and PayPal still sustain their tiered fee structure starting 50 cents for transactions under $25. Venmo’s cash-back to crypto conversion program comes in a week in, which digital currency is gaining more attention in Washington.
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Source: CNBC