PayPal-owned mobile payment service Venmo announced Tuesday that it would let its credit card users buy cryptocurrencies using cash back from purchases.
The “Cash Back to Crypto” service is live as of this week and enables Venmo credit card users to use the 1 to 3% cash back received from purchases on the card to buy Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
To enable the new feature users can select the rewards tab on the credit card home screen in the Venmo app and tap “Get Started.” Customers can also set up automatic monthly conversions from cash back to cryptocurrency through the app. From the rewards tab, users can turn automatic monthly conversions on or off or change the type of cryptocurrency they’d like to purchase that month.
All crypto purchases associated with the feature will have no purchase fees as the conversion fees for swapping assets are built into a monthly transaction statement.
“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,” said Venmo’s senior vice president and general manager Darrell Esch in a press release.
The new crypto purchase feature could boost interest in the Venmo credit card, which it began offering to all its users in February.
Venmo first introduced the ability to purchase crypto through its platform in April through a partnership with regulated blockchain infrastructure platform Paxos. Venmo competitor, the Square-owned Cash App, has allowed most users to buy and sell Bitcoin through its app since 2018 but does not offer a credit card.
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