Text ink Announce Its users will be able to transfer cryptocurrencies between Venmo wallets, PayPal accounts, and external wallets and exchanges.
Venmo’s introduction of full crypto wallet functionality is a big step toward normalizing crypto payments. The move comes after the company launches its in-app trading platform for crypto assets in 2021. So far, the app only supports the buying and selling of encrypted assets, not transfers.
Venmo’s foray into encrypted payments is a response to growing competition in the mobile peer-to-peer (P2P) payments market. While Venmo remains one of the most popular payment apps in the U.S., competitors including Cash App have also emerged. Cash App entered the crypto payments space in 2018, putting it ahead of Venmo.
With the launch, Venmo users can use their wallet address to identify recipients, or generate a unique identifying QR code they can share with others. However, Venmo has not yet said how fees and transaction costs will be applied to encrypted transfers.
The integration of cryptocurrency transfers in popular payment apps like Venmo shows that even traditional financial institutions like PayPal are recognizing the value of cryptocurrencies. It also marks a shift in the payments industry towards more efficient and cost-effective P2P payments, which can be facilitated by cryptocurrencies.
In the grand scheme of things, Venmo’s move shows how the fintech industry is increasingly merging with the world of cryptocurrencies.
Going forward, we can expect to see more fintech companies and payment apps incorporating cryptocurrencies into their platforms. The industry will continue to grow and mature as more consumers become accustomed to paying with cryptocurrencies.