PayPal's Venmo launches crypto buying and selling


The German headquarters of the electronic payments division PayPal is pictured at Europarc Dreilinden business park south of Berlin in Kleinmachnow, Germany, August 6, 2019. REUTERS/Fabrizio Bensch

Venmo, the peer-to-peer payment service owned by PayPal Holdings Inc (PYPL.O), said on Tuesday it has started allowing users to buy, hold and sell cryptocurrencies on its app, a step that could inspire more mainstream adoption of the asset class.

Venmo users will be able to buy bitcoin, ethereum, litecoin and bitcoin cash for as little as $1 and publish transactions on the app's feed, the company said.

With more than 70 million customers, Venmo is one of the most popular payment apps in the United States, especially among younger consumers who use it to pay friends and family. It processed around $159 billion in payments last year.

California-based PayPal has become one of the most active mainstream financial companies in cryptocurrencies.

In October, it began allowing users to buy, sell and hold cryptocurrencies in its digital wallets and last month it started allowing customers to spend their virtual coins at millions of merchants globally.

These launches helped to fuel a rally in virtual currencies. Bitcoin has soared nearly 90% since the start of this year, boosted by interest from larger financial firms betting on its greater adoption and use as a hedge against inflation.

Venmo's crypto launch also coincides with increased competition in the U.S. peer-to-peer payments sector.

Square Inc's (SQ.N) rival Cash App, which has allowed cryptocurrency purchases since 2018, has seen user growth boom over the last year. Other financial technology startups popular with young consumers, such as broker Robinhood also allow crypto buying and selling.

More than 30% of Venmo customers have purchased crypto or equities, 20% of which started buying during the pandemic, the 2020 Venmo Customer Behavior Study found.

"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," Darrell Esch, Venmo senior vice president, and general manager said.

Crypto on Venmo is enabled through PayPal's partnership with Paxos Trust Company, a regulated provider of cryptocurrency products and services.
News Source: Reuters 
Category and Tags
More stories by
What are specified small mopeds in Japan?

In Japan, "specified small mopeds" (often referred to as tokutei kogata nirin or 特定小型二輪) are a category of very low-power, low-speed two-wheeled vehicles. This classification is part of Japan's efforts to make micro-mobility more accessib

why Japanese corporations are declining?

The combination of structural and economic competitiveness challenges in recent decades has led to a decline in Japanese firms Here are the main reasons for their decline.1. An aging population and a shrinking workforce:Japan’s population problem i

Is there an actual Tesla phone?

Although Tesla has refuted any plans to release a smartphone, rumours continue. It might be a logical progression of the business's connected auto ecosystem, according to analysts.There are a lot of rumours on the internet about a Tesla phone that is

Exploring "Social Business Misconception: Insights into Muhammad Yunus’s Social Business Theory"

Social business has emerged as a groundbreaking concept for addressing pressing societal challenges through self-sustaining business models. Pioneered by Nobel Peace Prize laureate P...

Hazrat Shahjalal International Airport should be renamed as Dhaka Airport

The debate around renaming Hazrat Shahjalal International Airport to "Dhaka Airport" often stems from a few key reasons:International Recognition: "Dhaka" is a globally recognized name, and using it in the airport's name could make it easier for inte

Follow Business Habit on Facebook, Twitter