Venmo now offers its more than 70 million customers the opportunity to buy, store and sell cryptocurrencies directly in the app. Adoption of crypto-assets as a means of payment appears to be surging, including the simplification of what was originally a complex purchase process.
Starting this week, U.S. customers of Venmo will have the ability to trade Bitcoin, Ethereum, Litecoin and Bitcoin Cash directly. The PayPal subsidiary also offers tutorials and videos in the app to answer frequently asked questions. This is designed to help customers learn more about the world of cryptocurrencies.
Strong demand for cryptocurrencies
According to the 2020 Venmo Customer Behavior Study, more than 30% of Venmo customers have already started buying cryptocurrencies or stocks, 20% of them during the pandemic. The expansion of the payment service is intended to support PayPal's decision. This is to educate customers on the potential of digital currencies while the asset class continues to be in a growth phase and tackles the path to mass adoption.
"Our goal is to provide our customers with an easy-to-use platform that simplifies the process of buying and selling cryptocurrencies. It also aims to demystify some of the common questions and misconceptions consumers may have." - Darrell Esch, Vice President Venmo.
Users can begin their crypto journey with as little as one U.S. dollar. They have the ability to buy and sell cryptocurrencies using money from their Venmo balance or a linked bank account. All transactions are managed directly in the app. Together with PayPal, this makes trading cryptocurrencies a whole lot easier and mass-market friendly.
Regulator approval
The project is made possible by PayPal's partnership with Paxos Trust Company, a regulated provider of cryptocurrency products and services. PayPal has also been granted an initial conditional bit license from the New York State Department of Financial Services (NYDFS). This only enables PayPal and Venmo to offer cryptocurrency buying, selling, and custody services to their customers.
