PayPal’s Venmo launches crypto trading functionality in the app

The competing payment company under PayPal, Venmo has launched trading for four major cryptocurrency: Bitcoin (BTC), Ether (ETH), Litceoin (LTC), and Bitcoin Cash (BCH).

PayPal’s Venmo launches crypto trading functionality in the app

Venmo started the crypto trading option by following in the footsteps of its rival Square’s cash app. When Square integrated Bitcoin trading into its mobile platform during the crypto bull market in 2017, it made headlines as well as dollars.

As of Tuesday, Venmo will allow its more than 70 million users to buy, hold and sell cryptocurrency directly from the app. The version will give access to the users via in-app manual that allows them to better browse the cryptocurrency trading section and encourages them to share their cryptocurrency experience through Venmo feeds.

According to the company’s 2020 customer behaviour research, over 30% of Venmo users have already started buying cryptocurrencies. Among which, 20% started during the COVID-19 pandemic. This study shows that public health and the accompanying economic crises have accelerated the trend towards digitization and new attempts at financial technology.

Venmo launched the crypto trading facility with the help from Paxos Trust Company, a regulated crypto products provider. 

Dan Schulman, CEO of PayPal, pointed out developments since the payment giant first launched its crypto product in the US last November. According to Schulman, PayPal is designed to support the use of cryptocurrencies in day-to-day transactions and leverage smart contracts and other broader functions of blockchain technology. He also suggested the company’s vision of using crypto technology to achieve a “more inclusive economy” where “things will be very different from today.”