PayPal allows Venmo users, who own it, to buy bitcoin, ethereum and other cryptocurrencies, with a smaller purchase amount of only one dollar.
PayPal gave a good boost to the bitcoin market last March, when it introduced the “checkout with crypto” service (initially for users in the US), allowing its customers to choose between cryptocurrency payments. Now the payment giant is expanding the public’s contact with bitcoin, with a new service within its popular application, Venmo.
As announced yesterday, a new option is added for the 77 million users of the Venmo application. With this option, users will be able to immediately buy Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) worth at least one dollar.
“Customers will be able to buy and sell cryptocurrencies using funds from their balance with Venmo or a linked bank account or debit card. All transactions are managed directly in the Venmo application.”
The introduction of this feature to users, which users will have access to by selecting the top right edge of the application, will include educational material, which the company says will demystify various issues related to bitcoin and other cryptocurrencies.
The new feature provided to Venmo users is expected to help greatly expand the public’s contact with cryptocurrencies, as the app encourages users to share their activity on a social network that other users of the app have access to.
However, the announcement does not specify what the cost of buying bitcoin and other cryptocurrencies will be in relation to the trading price at the exchanges. A Venmo spokesman, however, said the same charges would apply to all PayPal transactions.
PayPal CEO Dan Schulman said the move did not mean his company would follow in the footsteps of other companies such as Tesla and Square by adding bitcoin to its balance sheet.