PayPal's Venmo allows credit cardholders to buy crypto with cashback

FILE PHOTO: Representations of cryptocurrencies Bitcoin and Ethereum are placed on PC motherboard in this illustration taken, June 29, 2021. REUTERS/Dado Ruvic/Illustration

(Reuters) – Paypal Holdings Inc-owned Venmo on Tuesday rolled out a feature that would allow holders of its credit cards to automatically buy cryptocurrencies with the cashback earned on their purchases.

Cardholders will be able to buy Bitcoin, Ethereum, Litecoin and Bitcoin Cash through the “Cash Back to Crypto” feature and will not be charged fees for the transaction, Venmo said in a statement.

The users can at any time hold or sell such assets within the Venmo app and change their choice of cryptocurrency.

The peer-to-peer payment service already allows its more than 70 million users to purchase the four cryptocurrencies through its direct buying option, which was introduced in April and carries a fee.

Adoption of digital assets has gathered pace this year, with Venmo’s parent PayPal becoming one of the most active mainstream financial companies in cryptocurrencies.

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