According to a report by TechCrunch, PayPal-owned Venmo has launched a new feature called “Cash Back to Crypto,” enabling customers to buy cryptoassets using cashback from Venmo credit card purchases. The purchases can be enabled automatically with no associated transaction fees, a selling point Venmo says will hold for the long term.
Venmo’s new feature is in addition to the platform’s established buying and selling of cryptoassets, first launched earlier in the year. Cardholders have the option of purchasing Bitcoin, Ethereum, Litecoin and Bitcoin Cash through the cashback feature.
The report claims Venmo views Cash Back to Crypto as a stepping stone for newcomers to cryptoassets. The company designed the system as a “set-it-and-forget-it,” feature that simplifies the process of purchasing crypto.
Darrell Esch, Senior Vice President and General Manager at Venmo, said the new feature offers customers a way to “start exploring the world of crypto.”
Esch went on to say:
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.
PayPal CEO Dan Schulman previously commented on the Venmo’s credit card performance in Q1, saying it was “outpacing” expectations and that the company was also seeing “strong adoption” for crypto on the Venmo platform.