Venmo announced today that it would begin the rollout of Crypto on Venmo, allowing consumers to buy, sell, and hold four cryptocurrencies directly through the mobile app: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. The company expects the service to be available to all 70 million Venmo users within the next few weeks.
According to a 2020 survey, over 30% of Venmo users have already purchased crypto or equities, and a significant portion started their investment journey during the pandemic. Now, with this new service, consumers can safely buy cryptocurrencies with as little as $1. Users will also have access to educational materials like in-app guides, videos, and cryptocurrency trends.
Parent company PayPal (NASDAQ:PYPL) launched a similar service last October, followed by Checkout with Crypto last month. This latest move underscores PayPal's commitment to expanding the utility of digital currencies, and it adds another tool to Venmo's growing list of financial services.
Alongside other products like direct deposit, QR code payments, the Venmo credit card, and business profiles -- all of which launched in the last year -- Crypto on Venmo could help bring more consumers to the platform, in addition to driving user engagement.
During PayPal's most recent earnings call, CEO Dan Schulman indicated that Venmo's revenue would approach $900 million in 2021. This new service should help the app hit that mark.