Venmo said Tuesday it’s begun allowing users to invest in cryptocurrencies with as little as $1, using funds from their Venmo balance or a linked bank account or debit card.
Over the next few weeks, all of the roughly 70 million users of the app will be able to buy, sell, or hold four different cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, the mobile payment service said. Clicking “Crypto” in the Venmo app’s menu gets users started. They can also access in-app guides and videos to answer commonly asked questions or learn more about cryptocurrencies in general, and they can share their experiences through the Venmo feed.
Cryptocurrencies, or digital currencies, have garnered a lot of attention lately, with sky-high prices for Bitcoin, a leading virtual currency, as well as Tesla’s decision to accept Bitcoin as payment for its cars and its acquisition of $1.5 billion worth of Bitcoin. According to the 2020 Venmo Customer Behavior Study, more than 30% of Venmo customers already invest, either in cryptocurrencies or stocks, and 20% of these started during the pandemic. Venmo said its new feature will bring cryptocurrencies further into the mainstream.
"Our goal is to provide our 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 may have," said Darrell Esch, senior vice president and general manager, Venmo, in a statement.
Venmo is owned by online payment company PayPal, and the launch of this feature extends PayPal’s move into cryptocurrencies. Last month, PayPal introduced Checkout With Crypto, which allows its U.S. customers to make purchases with the digital currency.