Users who have purchased bitcoin through the app will now be able to get self-custody of their bitcoins, as well as send them directly to other Venmo users.
Venmo, the PayPal-owned mobile payment platform, is launching the ability for its customers to transfer bitcoin to other Venmo users, PayPal accounts, wallets and external exchanges, beginning in May 2023. The company says the move is in response to growing customer demand for digital asset management options. according to AdvertisingOver 50% of its cryptocurrency-using customers chose Venmo because of its security, security, and ease of use, while over 74% of customers continued to hold their cryptocurrency in their Venmo account over the past year.
The transfer process is designed to be simple and can be done in a few steps via the Venmo app. Customers can go to the Crypto tab, view their assets, click the transfer arrows and choose to send Bitcoin to a Venmo account, or by entering the recipient’s wallet address to send it to PayPal or another external wallet. Customers can also click receive to display a QR code of their unique Bitcoin address, which can be shared with other people.
Venmo is quick to note that cryptocurrency transfers cannot be canceled or reversed, something that may be hard for new Bitcoin users to get used to, but it does eliminate chargebacks and other complexities that fiat rails present.
“Crypto transfers will be rolled out to Venmo customers over the coming weeks starting in May 2023,” Venmo said in a press release. “We are excited to connect Venmo customers with the community, wallets, and other exchanges, and we intend to continue to roll out additional crypto products and services in the coming year.”
As one of the largest mobile finance apps in the US and a first step into bitcoin for many, this update now offers users the ability to take charge of their bitcoins, an essential step in achieving the full features bitcoin requires. Venmo’s decision to add this feature demonstrates their understanding of the growing demand for users to be able to have complete control over their bitcoins, preventing mishaps involving trusted third parties.