PayPal-owned mobile payment service Venmo announced yesterday it was launching a new service for Venmo Credit Card customers called Cash Back to Crypto. This will enable people to use any cash back received on card purchases to buy cryptocurrencies — directly from their Venmo account.
The Venmo Credit Card is a contactless Visa card and can be used at the millions of merchants that accept Visa cards worldwide. Customers can earn up to 3% cash back on their spends automatically and use it in Venmo’s dynamic rewards programme.
The Cash Back to Crypto feature is available under the Rewards tab on the Venmo Credit Card home screen. Customers can make use of the auto-purchase feature to automatically buy a cryptocurrency of their choice with their cash back. These purchases won’t incur any transaction fees.
SVP and GM of Venmo, Darrell Esch, 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 four cryptocurrencies available on Venmo are Bitcoin, Ether, Bitcoin Cash and Litecoin. Venmo began offering crypto services back in April, when it started enabling users to invest in the aforementioned coins for as little as $1.
As well as buying cryptocurrencies, Venmo customers can already access crypto market data and educational resources. The rollout of the new Cash Back to Crypto feature began yesterday and over the coming weeks it will be made available to all eligible Venmo Credit Cardholders.