Venmo credit card customers can now convert their monthly cash back rewards to crypto, the unit of payments giant PayPal announced Tuesday.
- Venmo’s new “Cash Back to Crypto” feature will allow users to choose between bitcoin, ether, litecoin and bitcoin cash, the same four cryptocurrencies that are currently available on the Venmo app.
- Unlike Venmo’s normal fees for cryptocurrency purchases, which can range from $.50 to 2.3% of the transaction amount, the Cash Back to Crypto program will not have a transaction fee. Instead, a conversion spread is baked into the monthly transaction.
- Once the purchase is complete, customers will be able to either hold their crypto or sell it on the Venmo app. The program will not support transfers to external wallets.
- “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,” Darrell Esch, a general manager at Venmo and “head of checkout” at PayPal, said in a statement.
- The Cash Back to Crypto rollout begins Tuesday and will be available to all Venmo credit card holders in the coming weeks.