Square’s payment app made headlines – and the dollar – when it re-integrated bitcoin trading into its mobile platform during the cryptocurrency market in winter 2017.
Now, rival payments company Venmo, owned by PayPal, is following suit by launching cryptocurrency trading in four major currencies: Bitcoin (BTC), Ether (ETH), Litceoin (LTC), and Bitcoin Cash (BCH).
Starting Tuesday and in the coming weeks, 70 million Venmo + customers will be able to buy, store and sell cryptocurrencies directly in the Venmo app. The launch provides users with access to app guides to help them better navigate the cryptocurrency trading space and encourage them to share their cryptocurrency experience via Venmo’s feed.
Venmo users will be able to buy as little as $ 1 in cryptocurrency and can use the money from Venmo’s balance or from a bank account or debit card associated with buying and selling a stake.
According to the 2020 Customer Behavior Survey, over 30% of Venmo customers have already started buying cryptocurrency or stocks. Of these, 20% began buying during the COVID-19 pandemic, which indicates that public health and the current economic crisis may well be. This has accelerated the trend of digitization and experimentation with new financial technologies.
Venmo’s cryptocurrency support is organized in partnership with Paxos Trust Company, which is a regulated provider of cryptocurrency products such as stablecoin and other services. Owner Venmo PayPal is also a Bitlicense conditional license holder from the NYS Department of Financial Services. Potential licensors like PayPal should contact companies that already have full licenses, like in this case Paxos.
Just a week ago, PayPal CEO Dan Shulman mentioned developments since the payment giant first launched its cryptocurrency offering in the US last November. Schulman said PayPal is committed to supporting the use of cryptocurrencies in day to day transactions and taking advantage of smart contracts and other advanced features of blockchain technology. He also presented the company’s vision of harnessing the benefits of cryptocurrencies to achieve a more “inclusive economy” as “things will happen differently than today.”