Venmo, a service by Paypal, announced Tuesday the launch of “crypto on Venmo,” which it described as “a new way for Venmo’s more than 70 million customers to buy, hold and sell cryptocurrency directly within the Venmo app.”
Users can start investing in cryptocurrencies with just $1 using the Venmo app. Customers can use funds from their Venmo balance or link a bank account or a debit card for the purchase.
Darrell Esch, senior vice president and general manager at Venmo, commented: “Our goal is to provide our customers with an easy-to-use platform that simplifies the process of buying and selling cryptocurrencies and demystifies some of the common questions and misconceptions that consumers may have.”
Venmo is licensed to engage in virtual currency business activity by the New York State Department of Financial Services, its website explains, noting that buying, selling, and holding cryptocurrency with Venmo is not available in Hawaii and where prohibited by law. “Crypto on Venmo is enabled through Paypal’s partnership with Paxos Trust Company, a regulated provider of cryptocurrency products and services,” the announcement notes.
More than 30% of Venmo customers have already started purchasing cryptocurrencies or equities, 20% of which started during the pandemic, the 2020 Venmo Customer Behavior Study reveals.