Venmo Adds Automatic Cryptocurrency Rewards Option to Credit Card
With interest in cryptocurrencies continuing to expand, another brand is adding crypto support to its credit card offering. Venmo has announced its new Cash Back to Crypto program for Venmo Credit Card customers. With this new option, cardholders can elect to automatically purchase cryptocurrency with the cashback rewards they earn each month. Additionally, those who opt into this program will not have any purchase fees associated with their “Cash Back to Crypto” buys (transaction fees normally start at $0.50 and go as high as 2.3% depending on the amount of crypto purchased).
Venmo Credit Card customers will also be able to select which crypto asset they’d like to purchase. Currently, the app offers Bitcoin, Etherium, Bitcoin Cash, and Litecoin. Customers will be able to toggle the Cash Back to Crypto feature on or off as they choose as well as change which crypto asset they’d like to buy with their cashback earnings that month.
The new crypto rewards feature comes to a credit card that was already unique. Instead of offering set reward multipliers, the Venmo Credit Card automatically earns users 3% back on purchases in their largest spending category, 2% back on their second largest spending category, and 1% back on everything else. These reward rates are reassessed on a monthly basis, making them more flexible. However, only certain spending categories are eligible.
This crypto overlay that Venmo is adding to its credit card is somewhat similar to what Upgrade recently announced. With that company’s new Bitcoin Rewards Credit Card, customers can earn the same 1.5% back but in Bitcoin instead of cashback. However, while this card was essentially a slight twist on the existing Upgrade Cash Rewards Card, Venmo’s crypto back program is simply an optional feature on the core product. Meanwhile, a slew of crypto-earning rewards credit cards are either in the process of rolling out or gearing up for launch, including the BlockFi Rewards Visa and the Gemini Credit Card.
In a statement announcing the new program, Venmo SVP and GM Darrell Esch said, “The introduction of the Cash Back to Crypto feature for the Venmo Credit Card offers customers a new way to start exploring the world of crypto, using their cash back earned each month to automatically and seamlessly purchase one of four cryptocurrencies on Venmo. We’re excited to bring this new level of feature interconnectivity on the Venmo platform, linking our Venmo Credit Card and crypto experiences to provide another way for our customers to spend and manage their money with Venmo.”
Although Venmo’s Cash Back to Crypto program is a relatively simple option, it is notable that the company is further embracing the crypto market. What’s more, when combined with what the Venmo Credit Card already has to offer, this update could position the card to give upcoming competitors a run for their money. Then again, with Venmo not currently offering the ability to transfer crypto to an external wallet, this could prove to be a major drawback for those who want more control over their crypto. Yet, with many cryptocurrency reward credit and debit cards on the way, there will surely be plenty of options for every type of crypto fan.