- With over 70 million users in the US, the introduction of cryptocurrencies on its platform will further establish Paypal’s presence in the digital asset market segment.
- Venmo will offer support for 4 cryptocurrencies in the beginning – Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
- The minimum investment amount for buying cryptocurrencies is at only $1, setting the entry barrier so low to encourage new users.
PayPal-owned Venmo is introducing crypto trading, allowing its users to invest in four different cryptocurrencies, starting at a minimum spending requirement of $1. Venmo is one of the most popular digital payment services in the US, with over 70 million users. With its latest move to introduce crypto trading on its platform, Venmo seems to be following in the footsteps of its biggest rival in the country, Square’s Cash App.
The four cryptocurrencies that Venmo will allow users to invest in are – Bitcoin, Ether, Litecoin, and Bitcoin Cash. Users can buy, hold, and sell the digital tokens of these cryptocurrencies as well as share their purchases with friends through Venmo’s personalized social feed. This development is seen as a big step by PayPal to introduce cryptocurrencies into the mainstream and has resulted in a surge in prices of Bitcoin and other digital currencies.
What is Behind this Move?
PayPal’s Venmo is one of the world’s largest digital wallet networks, offering users a fast, reliable, and cost-effective platform for digital payments. Therefore, it’s ‘move’ to endorse cryptocurrencies is indeed creating huge waves in the market. Crypto is seeing tremendous growth, especially in recent times, therefore PayPal’s move can be well attributed to the digital giant eyeing huge potential in the decentralized currency.
According to research by Facts and Factors, the global cryptocurrency market was estimated at $792.53 million in 2019 and expected to grow at a compound annual growth rate (CAGR) of 30% from 2019 to 2026. Not just PayPal, even MasterCard, Visa, and Tesla have started engaging in dabbling with cryptocurrencies such as Bitcoin. The reason is simple – users are getting more and more inclined toward digital assets, making it indispensable for merchants to support their interests by accepting crypto.
About Venmo’s Crypto Trading Features
“No matter where you are in your cryptocurrency journey, crypto on Venmo will help our community to learn and explore cryptocurrencies on a trusted platform and directly in the app they know and love,” the Senior Vice President and General Manager of Venmo, Darell Esch, shared. He added, “Our goal is to provide customers with an easy-to-use platform that simplifies the process of buying and selling cryptocurrencies and demystifies some of the common questions and misconceptions that consumers might have.”
Venmo’s crypto feature has been developed in partnership with blockchain infrastructure firm Paxos. PayPal has previously used Paxos for other digital asset initiatives such as stablecoin on its platform earlier as well. The launch is providing users exclusive access to in-app guides to help them better grasp Venmo’s cryptocurrency trading space, while also enabling them to share their experiences and feedback on the Venmo feed.
Venmo users will be able to use the crypto assets as a funding source as well as the company’s 26 million merchants after this launch. PayPal had acquired a conditional Bitlicense from the exacting New York State Department of Financial Services for this transformation, the first time it has been done. This provides PayPal the opportunity to team up with Paxos for the initiative until it gets a full license.
PayPal CEO Dan Schulman has called the shift to digital currencies “inevitable” in a recent press release. He mentioned that the company is interested in working with banks and regulators around the world to come up with new initiatives that can foster “the role digital currencies will play in the future of global finance and commerce.”
He also hinted at future developments in line with PayPal’s vision of enabling crypto use for everyday transactions, tapping into Smart Contracts as well as other ever-growing features powered by blockchain technology. Schulman has stressed the company’s vision of leveraging crypto for attaining a more “inclusive economy” where “things will be done much differently than today.”