PayPal’s Venmo app has quietly made a major move in the world of crypto. From May 2023, Venmo users will be able to transfer crypto to other Venmo accounts, PayPal accounts, and external wallets, including Ethereum MetaMask wallets. While PayPal and Venmo have allowed users to buy, hold and sell crypto for some time, this is the first time that transfers have been available. Previously, crypto was stuck within the PayPal walled garden, but now it has been unlocked, giving a vast user base access to the larger crypto ecosystem.
To put this into perspective, Venmo had a payment volume of $244 billion and 78 million active users in 2022, with an expected increase to 85 million in 2023. Of those Venmo crypto users, 74% held their crypto throughout 2022, and 50% added to their crypto holdings in 2023. Although the total number of crypto users is unknown, the size of Venmo’s overall user base is massive.
This move is a significant step towards onboarding and unlocking crypto functionality. When crypto is locked up, it’s purely an investment asset. However, when it is transferable, it becomes a currency. The real value of crypto is unlocked when it can be used to buy everyday goods and services. When this happens, holding crypto over USD will become a much more viable option for most. Adding the transfer function is a big step towards that future.
Payments to businesses are already a core function of the Venmo app, meaning that businesses can now receive payments via crypto from 78 million users. This is a massive step in bringing crypto to the masses, and it’s clear that PayPal/Venmo’s latest move will help to increase crypto adoption further.
Venmo Rise and Embrace With Crypto
PayPal’s Venmo app has quietly made a major move in the world of crypto. From May 2023, Venmo users will be able to transfer crypto to other Venmo accounts, PayPal accounts, and external wallets, including Ethereum MetaMask wallets. While PayPal and Venmo have allowed users to buy, hold and sell crypto for some time, this is the first time that transfers have been available. Previously, crypto was stuck within the PayPal walled garden, but now it has been unlocked, giving a vast user base access to the larger crypto ecosystem.
Venmo, founded in 2009, is a peer-to-peer payment app that allows users to send money to each other using their smartphones. The app has grown rapidly in popularity, particularly among younger generations, as it has made it easier and more convenient to split bills, pay friends back, and make other small transactions. Venmo has also become somewhat of a social media platform, with users often adding comments or emojis to their payment transactions.
In 2020, Venmo added support for buying, holding, and selling cryptocurrencies, starting with Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. This move followed PayPal’s entry into the crypto market earlier that year. With this latest announcement, Venmo is taking another step towards becoming a major player in the world of crypto.
This move is a significant step towards onboarding and unlocking crypto functionality. When crypto is locked up, it’s purely an investment asset. However, when it is transferable, it becomes a currency. The real value of crypto is unlocked when it can be used to buy everyday goods and services. When this happens, holding crypto over USD will become a much more viable option for most. Adding the transfer function is a big step towards that future.
Payments to businesses are already a core function of the Venmo app, meaning that businesses can now receive payments via crypto from 78 million users. This is a massive step in bringing crypto to the masses, and it’s clear that PayPal/Venmo’s latest move will help to increase crypto adoption further.