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Venmo Adds Cash Back to Crypto Redemption Option

PayPal and Venmo are looking to make it easier than ever to purchase cryptocurrencies like Bitcoin thanks to a new Cash Back to Crypto redemption option on the Venmo Visa Card. The new feature allows cardholders to redeem cash back for crypto, with no additional transaction fees.

Venmo Introducing Automatic Crypto Purchasing with Credit Card Rewards

Venmo is looking to make it even easier to purchase cryptocurrencies, thanks to a new feature the payment platform is rolling out. Users of the Venmo Visa can now use their cash back rewards to buy select cryptocurrencies without additional transaction fees.

The new cash back redemption option allows cardholders to transfer their rewards to Bitcoin, Ethereum, Litecoin, and Bitcoin Cash through the new “Cash Back to Crypto” option in the Venmo app. Previously, Venmo allowed customers to buy and sell crypto through a partnership with Paxos Crypto Brokerage.

No Additional Transaction Fees

Purchasing cryptocurrency through an online brokerage usually requires additional transaction fees. These additional charges can reduce the value in the crypto purchased, making short-term investments trickier and less valuable.

However, the new Venmo crypto cash back feature eliminates additional fees as cryptocurrency conversion spreads are built into monthly transactions. This process is similar to how PayPal (Venmo’s parent company) handles crypto transactions.

“With the introduction of the Cash Back to Crypto feature of Venmo credit cards, we will begin exploring the crypto world by automatically and seamlessly purchasing one of Venmo’s four cryptocurrencies using the cashback earned each month,“ said Venmo’s Senior Vice President, Darrell Esch, in a statement. “We are pleased to bring this new level of functional interoperability to the Venmo platform, linking Venmo credit cards and cryptographic experiences and providing another way for customers to spend money and manage with Venmo.”

About the Venmo Visa

The Venmo Visa earns an impressive 3% back in cash back rewards on the cardholder’s top spending category and 2% back in the next spending category. Those categories eligible for accelerated cash back include:

  • Bills and utilities
  • Dining and nightlife
  • Entertainment
  • Gas stations
  • Groceries
  • Health and beauty
  • Transportation
  • Travel

The card features no annual fee and no foreign transaction fees. Additionally, applicants can personalize their card with their unique Venmo QR code to make transferring funds a breeze.

Related Article: Best Credit Cards with an Instant Credit Card Number on Approval

Featured image by Venmo
About: Cory
Cory Santos

Cory is BestCards.com's "Jack of all trades" and resident credit expert, covering all facets of the credit card space. In addition to credit cards, Cory finds that jogging, cats, and memes are essential parts of a balanced day.