164 Interactions, 2 today
Venmo is following in the footsteps of its competitor, Square’s Cash App, by offering cryptocurrency trading.
App for making payments Square made headlines — and money — when it integrated Bitcoin trading into its mobile platform during the winter 2017 crypto bull market.
Now, PayPal-owned competitor Venmo is following suit by starting cryptocurrency trading for four big coins: Bitcoin (BTC), Ether (ETH), Litceoin (LTC), and Bitcoin Cash (BCH).
Venmo’s 70 million+ users will be able to purchase, carry, and sell cryptocurrency directly inside the Venmo app beginning on Tuesday and expected to be broadly accessible within the next several weeks. Users will be able to use in-app guides to help them properly understand the cryptocurrency trading space, and they will be encouraged to share their cryptocurrency experiences through the Venmo stream.
Venmo customers would be willing to purchase as low as $1 worth of cryptocurrencies and would be able to buy and sell their shares with either funds from their Venmo balance or funds from a related bank account or debit card.
According to the company’s research into 2020 consumer conduct, more than 30% of Venmo consumers have already started to buy cryptocurrencies or equities. Of these, 20% started purchasing after the COVID-19 pandemic, indicating that the public health and concurrent economic recession has intensified developments in digitisation and experimenting with emerging financial technology.
Venmo’s cryptocurrency support is made possible by a collaboration with Paxos Trust Company, a controlled distributor of crypto products such as its stablecoin and other services. PayPal, the company that owns Venmo, also has a conditional Bitlicense from the stringent New York State Department of Financial Services. Conditional licensees, such as PayPal, are expected to partner with companies who have already been given full-fledged licences, as Paxos has done in this situation.
PayPal CEO Dan Schulman pointed at changes underway just under a week ago, after the payments giant first went live with its crypto offering in the United States in November of last year. According to Schulman, PayPal’s goal is to promote the use of cryptocurrency in daily transactions as well as to leverage smart contracts and other, more expansive aspects of blockchain technology. He also pitched the company’s idea of using cryptocurrency to create a more “inclusive economy,” in which “things will be done much differently than they are now.”