PayPal has announced that its Venmo service will offer a new feature called Cash Back to Crypto that allows Venmo Credit Card customers to automatically purchase cryptocurrency of their choice from any cash back they earn on their card purchases. The feature will be nice for any customers bullish on the cryptocurrency market who hope to build the value of their cash back reward.
The firm said that any crypto purchased through this program will not have any transaction fee associated with it. Instead, the firm will use a cryptocurrency conversion spread built into each monthly transaction. If you decide you no longer want to receive the cryptocurrency you picked, you can adjust this afterwards.
Commenting on the new cash back option, Darrell Esch SCP and GM, Venmo, said:
“The introduction of the Cash Back to Crypto feature for the Venmo Credit Card offers customers a new way to start exploring the world of crypto, using their cash back earned each month to automatically and seamlessly purchase one of four cryptocurrencies on Venmo. We're excited to bring this new level of feature interconnectivity on the Venmo platform, linking our Venmo Credit Card and crypto experiences to provide another way for our customers to spend and manage their money with Venmo.”
The new Cash Back to Crypto option is launching today. To use it, navigate to the Venmo Credit Card home screen and go to the Rewards tab. From there, press ‘Get Started’ on the Cash Back to Crypto option, agree to the terms and pick the crypto of your choice. If you want to stop using the feature or change cryptocurrency, just head back to the Rewards tab. Through the Venmo app, you can choose to hold or sell crypto. While it’s unlikely you’ll earn much crypto through the program, you will probably have to keep a record of what you do with the cryptocurrencies for tax purposes.