Paypal’s Venmo, a mobile payment app allows users to buy, hold and sell bitcoin and other cryptocurrencies through its platform. This is potentially a significant step towards moving cryptocurrencies into the mainstream. It will be available to more than 70 million app users, within the next few weeks.
Venmo allows customers to trade in four different cryptocurrencies - Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Users can share their cryptocurrency purchases on the Venmo feed and invest as low as $1 using funds from the Venmo app, a linked bank account, or a debit card.
Venmo users are already taking the plunge into cryptocurrency trading after the value of many of the biggest digital currencies soared in recent months. In one survey of 2,200 Venmo users, the company found out that almost a third have already started purchasing cryptocurrencies or stocks.
“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,” said Darrell Esch, Senior Vice President, and General Manager at Venmo.
Esch added, “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. We do think some customers will certainly want to share this fun experience. They can share with their friends and community that they’ve taken the step into this space”.
The development expands on an initial move by PayPal to allow users to buy crypto through its main platform. The company started letting people use their crypto holdings to pay at its online merchants globally.
Venmo is among the popular payment services
With more than 70 million users, Venmo is one of the most popular digital payment services in the U.S. It’s particularly popular among younger Americans who use the app to make payments or split purchases with friends and family.
PayPal has ramped up its investments in crypto. The payment giant agreed to buy Curv for $200 million. Curv, which is a startup company helps clients to store their digital currency securely.
PayPal has been adding new features to its PayPal and Venmo apps as it seeks to become a one-stop-shop for consumers’ financial needs. Customers signed the app at twice the rate they previously had, after adding the ability to buy, sell and hold cryptocurrency in its PayPal app.
Venmo’s crypto feature was developed in partnership with blockchain infrastructure firm Paxos, which PayPal has also used for its other digital asset initiatives. PayPal was awarded a license to engage in crypto activities by the New York regulators last year.
While bitcoin investors see it as a store of value similar to gold, not everyone is convinced by the digital currency’s comeback in the market. It previously sank as low as $3,122 in 2018 after climbing to almost $20,000 a year earlier. Skeptical economists view bitcoin as a bubble waiting to burst.