Venmo announced earlier today that it will be adding support for crypto payments for its more than 70 million users. This move will allow its users to buy, hold, and sell and cryptocurrencies like Bitcoin, Ethereum, Litecoin, and BCH directly in the app.
Venmo Follows PayPal Path Toward Crypto Adoption
The move is similar to Venmo’s parent company, PayPal, adding support for crypto which was announced late last year. However, Venmo’s platform will support four types of cryptocurrencies: Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
“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 GM of Venmo said.
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It appears that the move is targeted towards younger users of the platform. Venmo is skewed towards users who are in their 20s and 30s, compared to the overall US population.
“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,” Esch noted this in the announcement.
“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,” he added.
The Venmo news kept Bitcoin holding onto support | Source: BTCUSD on TradingView.com
What The Rollout Of Bitcoin, Ethereum, Litecoin, and BCH Means
According to Venmo’s 2020 customer study, more than 30% of its users already purchased cryptocurrency. Last year, the company processed around $159 billion in payments.
Venmo will be leveraging the in-app social feed to educate and spread the word about cryptocurrencies to its users. Users will be able to share their crypto transactions to their feed like a social media post. This is geared toward creating awareness and engagements around the topic of crypto as users share their crypto journey on the app.
The company has also said that it will publish videos and guides that will answer questions inside the app for users who are just beginning their crypto journey.
Late last year, PayPal began allowing users to buy, sell, and hold cryptocurrencies on its digital wallets. In March this year, it began allowing users to spend their virtual coins at millions of merchants globally. Last month, the payments giant said it had agreed to buy Curv, a start-up that helps clients store their digital tokens securely, for nearly $200 million. It has also established a new business unit focused on blockchain, which Curv is set to join.
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Venmo has also mentioned that its crypto feature was developed in partnership with blockchain infrastructure firm, Paxos, a platform that PayPal has used for its digital assets and currency initiatives.
Crypto on Venmo’s launch coincides with increasing competition in the US peer-to-peer payments sector.
Since 2018, Venmo’s rival, Square Inc’s Cash App has allowed cryptocurrency purchase. Fintech firms like broker Robinhood also allow crypto buying and selling.
Venmo’s crypto will be launching today and it’s expected that all users will be able to use it within the next few weeks.
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