Venmo's 70 Million Users Can Now Buy, Sell, And Hold As Little As $1 In Crypto

PayPal Holdings Inc (NASDAQ:PYPL)-owned mobile payment service Venmo said its 70 million customers can now buy, sell and hold cryptocurrency directly with the Venmo app.

As per a press release shared by the company, the rollout is set to take place today and will allow users to purchase as little as $1 using crypto.

Customers using crypto on Venmo can choose from four types of cryptocurrency: Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), Litecoin (CRYPTO: LTC), and Bitcoin Cash (CRYPTO: BHC). Customers can also share their crypto journey through Venmo’s feed if they choose to when making transactions with these digital assets.

Venmo’s crypto service is enabled by regulated cryptocurrency service provider Paxos that has partnered with PayPal.

Customers will be able to buy and sell crypto using funds from their balance with Venmo, or a linked bank account or debit card.

“Crypto on Venmo is a new way for the Venmo community to start exploring the world of crypto, within the Venmo environment they trust and rely on as a key component of their everyday financial lives," said Darrell Esch, SVP and GM, Venmo. 

Why It Matters: Venmo’s crypto service comes after PayPal launched its checkout with crypto service earlier this year, which enabled users to pay with cryptocurrency at PayPal’s 29 million online merchants.

Along with signaling more mainstream adoption, the move gave crypto markets a significant boost, with Bitcoin’s price rising above $60,000.

The company revealed that as per a 2020 Venmo Customer Behavior Study, more than 30% of Venmo customers have already started purchasing crypto or equities, 20% of which started during the pandemic.

“The launch of the feature furthers PayPal's commitment to educating its customers on the potential of digital currencies as they continue to grow and drives understanding and utility of cryptocurrencies on a mass scale,” said the company in a statement.