Paypal's Venmo Launches 'Cash Back to Crypto' Feature to Auto Purchase Cryptocurrencies

Venmo, a Paypal service, has introduced the “Cash Back to Crypto” feature to allow credit card customers to automatically buy four types of cryptocurrencies with their cash back without incurring transaction fees.

Cash Back to Crypto on Venmo

Payments giant Paypal announced Tuesday a new feature on its Venmo platform called “Cash Back to Crypto” that enables Venmo credit card customers to “use monthly cash back in their Venmo account to auto-purchase cryptocurrency of choice, with no transaction fees.” The announcement details:

Starting today, Cash Back to Crypto will be rolling out to Venmo Credit Cardholders, offering more ways to use cash back and expanding on Venmo’s crypto functionality, which launched earlier this year.

Cash Back to Crypto will be available to all eligible Venmo Credit cardholders in the coming weeks, the company noted.

Venmo launched crypto trading on its platform in April, allowing over 70 million users access to four types of cryptocurrencies: bitcoin (BTC), ether (ETH), litecoin (LTC), and bitcoin cash (BCH).

“Customers will be able to manage their cash back to crypto auto-purchases in real time and can choose to change their crypto of choice at any time,” the announcement adds, elaborating:

Purchases made from their Venmo account using the auto-purchase feature with Cash Back to Crypto will not have any transaction fee associated with the purchase, with a cryptocurrency conversion spread built into each monthly transaction.

Paypal is currently hiring over 100 positions, including for Venmo, to expand its crypto service. The company recently revealed its expansion plans, including via a new wallet “super app,” open banking integration, U.K. expansion, and third-party wallet transfers.

“We continue to be really pleased with the momentum we’re seeing on crypto and we’re obviously adding incremental functionality into that,” said Paypal CEO Dan Schulman.