Venmo Brings Crypto Into Neobank’s Growing Fight
- Venmo offers its users the ability to buy, hold, and sell four types of crypto.
- This is just the latest move that makes Venmo a growing competitive threat to neobanks.
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The PayPal unit has added the ability to buy, hold and sell cryptocurrencies in its application. Venmo will allow users to participate if they have a minimum balance of $ 1 and will offer support for four cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
Venmo positions crypto trading as a social activity – users can share trade updates with their friends through the Venmo feed. They will be able to trade using funds stored at Venmo or using their linked bank accounts.
Crypto trading is Venmo’s latest in a series of new features that bring it closer to the competition with
like Chime or Varo, although avoid label and prefers to be called a “digital wallet”.
- Venmo deployed A credit card in October in partnership with Synchrony, and in January unveiled mobile check cashing, available to debit or direct deposit card users.
- In February, PayPal sketch a roadmap for Venmo that, in addition to cryptocurrency, includes integration with online money saver (and company sibling) Honey, as well as budgeting and savings tools .
Venmo’s large user base and brand recognition gives it an advantage over other neobanks seeking to become hubs for the entire financial life of their clients. The company’s user base reaches a colossal 70 million. Perhaps the most vulnerable in Venmo
competitors is Revolut, which also offers cryptocurrency trading at its nearly 200,000 American clients and aspires to provide a range of services beyond basic checking and savings accounts to its clients to make them the center of their financial lives.
For example, in the UK it offers stock trading and insurance options in partnership with Chubb, in addition to crypto trading. However, if Venmo also takes the financial center approach, its strong brand recognition and huge existing user base will give it a huge advantage in customer acquisition over Revolut.
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