Venmo, the peer-to-peer payment service owned by PayPal Holdings Inc, said on Tuesday it has started allowing users to buy, hold and sell cryptocurrencies on its app, a step that could inspire more mainstream adoption of the asset class.
The company stated that its users will be able to buy bitcoin, Ethereum, Litecoin and bitcoin cash for as little as $1 and publish transactions on the app’s feed.
Venmo is one of the most popular payment apps in the United States with users numbering over 70million, especially among younger consumers who use it to pay friends and family. Claims from the company stated that they processed $159 billion in payments last year.
PayPal has become one of the most active mainstream financial companies in cryptocurrencies.
They began allowing users to buy, sell and hold cryptocurrencies in its digital wallets in October and last month it started allowing customers to spend their virtual coins at millions of merchants globally.
These launches helped to fuel a rally in virtual currencies. Bitcoin has soared nearly 90% since the start of this year, boosted by interest from larger financial firms betting on its greater adoption and use as a hedge against inflation.
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Square Inc’s rival Cash App, which has allowed cryptocurrency purchases since 2018, has seen user growth boom over the last year.
Other financial technology startups popular with young consumers, such as broker Robinhood also allow crypto buying and selling.
More than 30% of Venmo customers have purchased crypto or equities, 20% of which started buying during the pandemic, the 2020 Venmo Customer Behavior Study found.