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Even more than its parent company PayPal, the payment app Venmo focuses on sending money among friends. When it comes to crypto, both services are pursuing a similar course.

The mobile payment service provider Venmo is expanding its cashback program. Holders of credit cards from the PayPal subsidiary will be able to exchange their monthly rewards for cryptocurrencies in the future. However, the services of the payment service provider are still only available in the USA.

The principle of cashback is very simple. With every purchase, Venmo credits a certain percentage of the purchase amount to the app user’s account. Payment by Venmo credit card, which operates via the Visa network, is a prerequisite. According to the announcement, the rewards acquired in this way can now also be converted into cryptocurrencies since August 10.

Venmo automates crypto purchases

Venmo’s platform opening up to cryptocurrencies is nothing new. The company followed PayPal’s lead back in April and integrated the buying and selling of Bitcoin, Ethereum, Litecoin and Bitcoin Cash into its own feature set.

These four digital currencies are now also available for crypto-cashback. The PayPal subsidiary optionally enables automated crypto purchases. After the monthly cashback amount is credited to one’s Venmo account, the app automatically transforms it into a previously selected cryptocurrency. Darrel Esh, senior vice president and general manager of the company, commented:

We’re excited to bring this new level of interconnectivity to the Venmo platform by linking our Venmo credit card and crypto experiences to give our customers another way to spend and manage their money with Venmo.

PayPal in the crypto frenzy

Payments giant PayPal is also increasingly expanding its crypto engagement. After the purchase and sale of Bitcoin and Co. is possible at least for US-Americans:inside since the end of 2020, the company also held out the prospect of withdrawal to its own crypto wallets in May.

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In addition, PayPal plans to expand its own crypto services to the UK in the future. Whether the payment service provider will develop its own Stabecoin, on the other hand, remains unclear.