Key takeaways:
- A QR code or external crypto address will be another way for users of the mobile payment service to obtain cryptocurrency.
- In April 2021, Venmo first provided cryptocurrency trading services.
According to a statement made on April 28 by the parent company of the payment app, Venmo, the ability for consumers to send cryptocurrency will soon exist. According to that release, users can transfer money to third-party exchanges and wallets starting in May, including Venmo and PayPal accounts.
In an interview with Consensus 2023 titled “PayPal’s Next Chapter in Crypto,” da Ponte described the new function’s operation.
“Starting in May, we are going to be enabling on-chain transfers from Venmo wallets, meaning that you can buy crypto on Venmo and send it to another Venmo user; you can send it to a PayPal user; you can send it to [an] external wallet; you can send it to your hardware wallet.”
The executive claimed that this function would give Venmo users more options, noting that PayPal has successfully adopted Venmo. Additionally, it would serve as a “use case” for digital assets since they can now be used to make free, quick transfers between Venmo and PayPal wallets. This effectively links the two most extensive networks and wallets in the nation.
According to a helpful article posted on Venmo’s website on April 28, verified users will also be able to receive cryptocurrency through a “crypto address QR code” from outside addresses.
In addition, users may also be required to pay blockchain network fees when they send money to an external wallet or exchange, as detailed in separate documentation. Additionally, according to that documentation, Venmo users in New York will not be able to send or receive cryptocurrency, and Hawaii does not yet support any of Venmo’s crypto services.
Although users of Venmo will be able to send and receive cryptocurrency for the first time today, the app previously introduced cryptocurrency trading features in April 2021. With the exception of actual transactions, this functionality allowed Venmo users to purchase, sell, and keep cryptocurrency. Currently, Bitcoin, Ether, Litecoin, and Bitcoin Cash can be used to make payments through the mobile app Venmo. Unfortunately, there don’t appear to be any crypto features in the desktop version.
PayPal has partnered with other companies in order to broaden the selection of cryptocurrency services it provides. Due to PayPal’s integration with the platform in December, users of MetaMask may now buy cryptocurrency using their personal PayPal accounts and have it sent straight to their self-custodial wallets.
