Venmo credit cardholders get more acquainted with cryptocurrency as the company will purchase tokens and coins with their remaining cashback! The PayPal's Venmo is reportedly expanding its current support for cryptocurrency by launching a new feature that allows users to buy cryptocurrency automatically through the cashback earned when using the Venmo credit card for purchases.
Cash Back to Crypto
According to the story by TechCrunch, unlike when directly buying cryptocurrency, these are actually automated purchases that won't have any transaction fees associated with them. This is a feature that Venmo notes is not technically promotion but rather how the system is expected to work long term.
Instead, a full cryptocurrency conversion spread is going to be built directly into each monthly transaction. Cardholders can buy Ethereum, Bitcoin, Litecoin, and Bitcoin Cash through the new option called "Cash Back to Crypto" which will be rolling out to the Venmo app.
PayPal Venmo Cryptocurrency
Venmo initially introduced the customer's ability to purchase, hold, and sell cryptocurrency back in April 2021 as part of a much larger investment in cryptocurrency, which its parent company, Paypal, led. With the company's partnership with Paxos, a popular regulated provider of different cryptocurrency products and services, Venmo has over 70 million users who can access cryptocurrency through the Venmo app.
The cashback feature could help bring more sign-ups to the Venmo Credit Card through interlinking with the exciting cryptocurrency functionality. As of the moment, cardholders are capable of earning monthly cashback throughout eight different spending categories.
Venmo Credit Cardholders earn cashback through the following:
1. Up to 3% cashback from top eligible spending category
2. 2% cashback on second-highest
3. 1% cashback on other purchases
The top two categories are adjusted every month based on where consumers are mostly spending their money on.
Venmo Credit Card Crypto Purchase
In order to enable Cash Back to Crypto, users will need to navigate to the Venmo Credit Card home screen located in the app. They will then need to click the "Rewards" tab then click on the "Get Started."
Users will then agree to the terms, select which crypto they want to purchase automatically and confirm their selection. Once this is enabled, when the cashback fund hits the customer's own Venmo balance, the money is automatically used to make a crypto purchase without any interaction needed.
Cryptocurrency Conversion Spread
This feature won't include any transaction fees as a new cryptocurrency conversion spread is then built into every monthly transaction. NewsRoom notes that this is quite similar to how PayPal is handling its Checkout with Crypto.
This would allow online shoppers to make purchases through the use of their cryptocurrency. The cryptocurrency can also be converted to fiat without any needed transaction fees. Users can switch this feature off any time they choose.
This article is owned by Tech Times
Written by Urian B.