Venmo – a division of PayPal – is launching a new feature that will allow customers to purchase cryptocurrency with the money they earn back from using Venmo-based credit cards.
Venmo Customers Can Now Use Their Cash Rewards to Buy BTC
One of the big benefits of this program is that users will not be subjected to transaction fees as they are not purchasing crypto directly with bank accounts or other specific payment tools. The company says that the cashback system will work this way in the long term, meaning this is not a promotion of any kind. Users will always be able to buy digital assets with their cashback and not have to worry about pointless fees.
At the time of writing, the assets available for purchase through the cashback program are bitcoin, Ethereum, Litecoin, and bitcoin cash. The option is available through the new Venmo app and is labeled under “cash back to crypto.”
Darrell Esch – senior vice president and general manager at Venmo – explained in a statement:
The introduction of the cash back to crypto feature for the Venmo credit card offers customers a new way to start exploring the world of crypto, using their cash back earned each month to automatically and seamlessly purchase one of four cryptocurrencies on Venmo. We’re excited to bring this new level of feature interconnectivity on the Venmo platform, linking our Venmo credit card and crypto experiences to provide another way for our customers to spend and manage their money with Venmo.
April of 2021 is when Venmo first began allowing its customers the chance to purchase and trade digital currencies, though to be fair, the company is a division of PayPal, which first announced its inclusion of digital assets back in October of last year. Venmo presently boasts more than 70 million users, all of which can now access crypto from the company app through a special partnership Venmo has with Paxos Trust Company.
Customers engaging in the cashback program can earn as much as three percent back on their primary spending category. Thus, if at the end of each month the user in question managed to spend the most money on restaurants, they will garner three percent back on all their restaurant purchases. From there, they earn two percent and one percent back in their second and third largest categories.
Adjusting to Make Spending Easier
In addition, things are typically adjusted monthly to aid in wherever the customer is spending the most money. This means that if a customer spends more on restaurants in January but more on gasoline in February, they will earn three percent back on said purchases for each month respectively.
To get involved in the cash back to crypto program, customers are advised to go to the home screen in the app, select the rewards tab and then click “get started.” They’ll be given instructions from there.