Expanding Venmo’s Cryptocurrency Features
PayPal, a major US remittance company, announced on the 28th that it plans to support the remittance function of crypto assets (virtual currency) at its subsidiary Venmo.
This new feature will allow Venmo users to not only send cryptocurrencies to friends and family, but also to and from external wallets and cryptocurrency exchanges. The remittance function will be implemented over the next few weeks starting in May 2023.
Venmo is a mobile payment service with over 78 million users in the United States (as of February 23), specializing in exchanging money between friends and family. Its popularity is driven by the ability to send money between friends for free and the ability to share remittance history through social feeds.
Starting in 2021, Venmo will be introducing cryptocurrency buying, holding and selling capabilities, as well as adding a Cash Back to Crypto feature for Venmo credit card customers and a price alert feature that allows real-time cryptocurrency price tracking.
According to Paypal, over 50% of Venmo’s cryptocurrency users choose Venmo for its security and ease of use. Over 74% of users who bought cryptocurrency on Venmo kept their cryptocurrency even as the cryptocurrency market continued to decline over the past 12 months. He added that after 2023, about 50% of customers with cryptocurrencies have increased their crypto holdings in their Venmo accounts.
Virtual currency remittance with Venmo has the same functions as wallets such as Metamask, which are representative in the market. You can go to the Crypto tab in the Venmo app, enter the destination address, and send. You can also receive cryptocurrencies from others by sharing the QR code.
When sending cryptocurrencies to places other than Venmo or PayPal, there is no Venmo fee, but network fees are incurred. Network fees vary depending on the type of virtual currency and network congestion.
connection:PayPal’s Venmo App Introduces New Features for Buying Cryptocurrencies
Prospects for PayPal and Venmo
According to PayPal’s recent earnings release, PayPal sees Venmo’s social features as a source of revenue for the next decade. Venmo will process ¥33 trillion ($244 billion) of payment transactions in 2022. This transaction value represents about 18% of PayPal’s total transaction value.
Venmo’s current revenue stream is a 2.9% transaction fee for businesses and a 1% fee for users who want instant withdrawals to their linked cards. In the future, Venmo plans to develop virtual currency-related products and services.
Prior to Venmo, PayPal has been expanding its digital wallet offering. In June 2010, 4 issues of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) were withdrawn from PayPal accounts to external virtual currency wallets, Implemented a function to deposit from an external virtual currency wallet.
At the end of 2022, Paypal announced a partnership with Ethereum’s mainstream wallet, MetaMask. MetaMask users have added the ability to purchase cryptocurrencies through their PayPal accounts. In addition, tokens in PayPal’s digital wallet could be transferred to MetaMask.
connection:PayPal expands cryptocurrency wallet functionality