Venmo launches crypto cashback for credit cards

Venmo, the mobile payments outfit owned by PayPal, has launched a new crypto cashback tool.

The company will allow Venmo credit card users to automatically purchase cryptocurrency using cash back rewards earned through credit card purchases, according to an announcement.

The new feature gives users a transaction fee-free method of acquiring crypto, albeit with a conversion spread baked into each monthly transaction.

Darrell Esch, SVP and GM of Venmo, said the tool offers “a new way to start exploring the world of crypto” for users of the payments app.  

Venmo began rolling out crypto trading functionality in April. The move gave customers the option to buy and sell different cryptocurrencies, view market data, and access educational content.

The four cryptocurrencies that can be traded through the app are bitcoin, ether, litecoin and bitcoin cash.

Keeping up with crypto

PayPal, founded by Peter Thiel and others, today provides payment services to over 400 million customers and merchants globally.

But the more than 20-year old company is evidently keen to stay ahead of the curve on developments in the crypto space.

In addition to acquiring crypto security firm Curv in March, The Block revealed in May that PayPal has even held exploratory talks about launching its own stablecoin.