Paypal Widens its Crypto Horizon: Crypto Transfers Now on Venmo

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By A D

Venmo recently announced that it will allow its customers to transfer cryptocurrencies like Bitcoin, Ethereum, and Litecoin directly within the app, starting in May.

Venmo’s new crypto transfer feature will allow its customers to buy, hold, and sell cryptocurrencies directly within the app. Customers will be able to fund their purchases with their Venmo balance or a linked bank account. The crypto transfer feature will initially support Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, with more cryptocurrencies potentially being added in the future. Venmo will also provide in-app guides to help users better understand cryptocurrencies and the risks associated with investing in them.

Venmo’s decision to launch crypto transfers is likely driven by the increasing popularity of cryptocurrencies among its customers. According to a recent report, nearly 30% of Venmo’s customers have already invested in cryptocurrencies, and 20% said they plan to do so in the next 6 months. By adding a crypto transfer feature, Venmo is capitalizing on this trend and providing its customers with a convenient and user-friendly way to invest in cryptocurrencies.

With over 70 million users, Venmo has a massive customer base, and its entry into the cryptocurrency market could increase the adoption of digital currencies among the general public. It could also drive up the value of cryptocurrencies. Additionally, Venmo’s move could put pressure on other payment apps like Cash App and Apple Pay to offer similar features.

PayPal’s Crypto Initiatives

The company had allocated $6.7 billion in financial liabilities to cryptocurrency, and it has been reported that PayPal held over half a billion dollars in cryptocurrency assets as of February 2023.

In late 2020, PayPal announced that it would be entering the cryptocurrency market by allowing users to buy, hold, and sell cryptocurrencies directly from their PayPal accounts. Initially, PayPal only offered support for four cryptocurrencies- Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. However, in early 2021, PayPal announced that it would be expanding its support to include other cryptocurrencies, such as Dogecoin and Bitcoin SV.

PayPal also allows users to use cryptocurrencies to pay for goods and services from merchants who accept PayPal. This move has made it easier for consumers to use cryptocurrencies in their everyday lives, and it has helped to legitimize cryptocurrencies as a form of payment.

the interface of paypal here you can buy sell and hold crypto
Paypal has been making active advances in the crypto space. Image Courtesy:Investmentu

In December 2022, PayPal announced that it would be expanding its cryptocurrency buy, sell, and hold service to Luxembourg. This move marked the first time that PayPal’s cryptocurrency service was available outside of the United States.

In January 2023, PayPal announced that it had partnered with MetaMask, a popular Ethereum wallet. The partnership allows MetaMask users to link their wallet to their PayPal account, making it easier for them to buy and sell cryptocurrencies.

Paypal has previously announced that it was planning on launching a stable coin. The stablecoin project was intended to create a new type of cryptocurrency that was pegged to the value of a traditional currency, such as the US dollar. In February 2023, it was reported that Paypal had put these plans on hold due to regulatory concerns and the company’s desire to focus on other cryptocurrency initiatives.

PayPal’s cryptocurrency developments could help to increase the mainstream adoption of cryptocurrencies. By allowing users to buy, hold, and use cryptocurrencies directly from their PayPal accounts, the company has made it easier for everyday consumers to get involved in the cryptocurrency market. If cryptocurrencies continue to grow in popularity and become more widely accepted as a form of payment, PayPal’s move into the cryptocurrency market could prove to be a significant contribution.

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