Users who have purchased bitcoin through the app will now be able to take self-custody of their BTC, as well as send it directly to other Venmo users.
Venmo, the mobile payment platform owned by PayPal, is launching the ability for its customers to transfer bitcoin to other Venmo users, PayPal accounts and external wallets and exchanges, starting in May 2023. The company says the move is in response to increasing customer demand for digital asset management options. According to the announcement, more than 50% of its cryptocurrency-using customers chose Venmo due to its safety, security and ease of use, while more than 74% of customers have 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 navigate to the Crypto tab, view their assets, tap the Transfer arrows and choose to send bitcoin to a Venmo account, or by entering a recipient’s wallet address to send to PayPal or another external wallet. Customers can also tap Receive to display their unique bitcoin address QR code, which can be shared with other people.
Venmo is quick to note that cryptocurrency transfers cannot be canceled or reversed, which is something that can be difficult for new Bitcoin users to get used to, but eliminates chargebacks and other complications presented by fiat rails.
“Crypto transfers will be rolling out to Venmo customers over the coming weeks starting in May 2023,” Venmo said in a press release. “We’re excited to connect Venmo’s customers to the community, other wallets and exchanges, and we intend to continue to roll out additional crypto products and services in the year ahead.”
Being one of the largest mobile finance applications in the United States and a first step into bitcoin for many, this update now introduces users to the ability to take self-custody of their bitcoin, an essential step in realizing the full properties bitcoin entails. Venmo’s decision to add this feature demonstrates their understanding of the growing demand for users’ ability to take full control of their bitcoin, preventing mishaps related to trusted third-parties.