PayPal’s payment service company Venmo has launched a credit card feature that enables its customers to convert their cashback rewards into cryptocurrencies, including Bitcoin (BTC).
According to a CNBC report today, with the initiative, people who want to gain direct exposure to Bitcoin and other digital currencies can do so by acquiring Venmo credit cards, where they will receive spending rewards in cryptocurrencies depending on the amount they spend.
Aside from Bitcoin, Venmo card owners will be able to convert their cashback to Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
The Service Can be Automated
Notably, customers who are willing to have their cashback rewards automatically converted to cryptocurrencies can do so by setting up an automated purchase for the digital asset of their choice.
Venmo will automatically facilitate the exchange into crypto once customers receive their cashback rewards for making purchases with their credit cards.
Per the report, the conversion rate will be based on the amount of the price of the cryptocurrency at the time of the purchase.
The exchange of cashback rewards for cryptocurrency will be carried out at zero cost, the announcement added.
While the initiative would help give direct exposure to people who are still scared of investing in cryptocurrencies due to their high risks, the acquired cryptos will be stored in customers’ Venmo apps.
The report noted that the converted cashback cannot be transferred to an external wallet unless the Venmo client chooses to sell it back to Fiat on the app.
PayPal to Increase its Crypto Customers
Interestingly, this is another initiative by Venmo’s parent company PayPal to onboard more crypto enthusiasts who are looking to increase their crypto holdings and get rewarded for purchasing everyday items using the Venmo credit card.
Recall that PayPal shook the world last year when it announced that its more than 346 million customers can now purchase and sell cryptocurrencies via its app.
The popular payment provider further increased its footprint in the crypto industry by allowing its customers to make payments using Bitcoin in March.
