Venmo soon will allow users to transfer their Bitcoin, Ethereum, Litecoin, and Bitcoin Cash to outside wallets—as well as to other users of the popular payment app.
The feature will roll out starting in May, according to a statement from PayPal, which acquired Venmo in 2013. Users can also transfer crypto to their wallets at PayPal, which released a similar ability in 2022.
Crypto transfers on Venmo will be irreversible, just like crypto transactions more broadly—a function of cryptocurrency’s use of blockchains, or immutable public ledgers. To roll out the transfer system, PayPal is partnering with Paxos, a crypto firm that specializes in stablecoins.
“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,” PayPal said in its statement.
The announcement from PayPal is one of the first drips of crypto updates from the payments giant since February, when it was reported that the publicly traded company was pausing work on its own stablecoin after reports that Paxos, its partner in the effort, was under investigation by the New York Department of Financial Services, a key player among U.S. cryptocurrency regulators.
At the time, a spokesperson for PayPal told Fortune that the company was “exploring a stablecoin” and that if and when the payments giant moves forward, it will “work closely with relevant regulators.”
Before the onset of Crypto Winter and the recent regulatory crackdown on the industry, PayPal was one of the more public crypto boosters among legacy fintech firms.
In October 2020, the company announced that U.S. users of PayPal would be able to buy, hold, and sell Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. One year later, the payments giant expanded the feature to Venmo customers.
Amid the crypto bull market of 2021, PayPal continued to build out crypto offerings. It let users pay merchants with cryptocurrency, partnered with Coinbase to allow those with PayPal-linked debit cards and bank accounts to buy tokens on the exchange, and expanded its crypto service beyond the U.S. to other countries, including the U.K.
After the collapse of several prominent crypto firms in 2022, PayPal noticeably rolled back its public rhetoric on cryptocurrencies. In February, longtime CEO Dan Schulman announced his intention to step down at the end of 2023.
Update, April 28, 2023: This article has been updated to show that Paxos is partnering with PayPal to enable crypto transfers on Venmo.
Learn more about all things crypto with short, easy-to-read lesson cards. Click here for Fortune's Crypto Crash Course.
FAQs
External Transfers
In order to send Crypto Assets outside of Venmo, you will need to provide the wallet address where you want to send the Crypto Assets. You should carefully verify that you have provided the correct destination wallet information to us prior to submitting your external transfer.
What is the Venmo crypto policy? ›
By using Venmo's crypto services, you agree to pay all applicable exchange rates (including spread) and fees. If you use a linked bank account or debit card as a funding source to buy crypto assets, your bank may charge you its own fees, including overdraft fees or insufficient fund fees, if applicable.
Is buying crypto on Venmo a good idea? ›
Venmo Crypto is a legitimate service for buying cryptocurrencies. In our Venmo Crypto review, we learned it's a good option for those new to digital assets. If you're an avid user of the Venmo app, you'll enjoy the simplicity and ease of use when making crypto trades.
How much does Venmo charge for crypto? ›
Venmo does not charge fees for holding crypto.
Why won't Venmo let me transfer crypto? ›
Venmo customers in the US (except Hawaii) who have verified their identity with Venmo can buy, sell, and hold cryptocurrency with their Personal Venmo profiles. Crypto transactions are only supported on personal Venmo accounts, and they aren't available for business profiles, charity profiles, or teen accounts.
Can you convert crypto to cash on Venmo? ›
When you sell your crypto, the proceeds will go to your Venmo account. From there, you can use the funds to make payments or purchases, or you can transfer the funds out of Venmo.
Does Venmo report crypto to IRS? ›
You'll receive a gains and loss statement from Venmo if you sold cryptocurrency using the platform. Regardless of what platform you use to sell crypto, your profits are subject to capital gains taxes.
What is the transfer limit on Venmo? ›
Verified Venmo accounts can transfer up to $19,999.99 per week to their bank account. However, the single transfer limit is capped at $5,000. What are the transfer limits for unverified Venmo accounts? Unverified accounts have lower transfer limits, typically up to $999.99 per week.
Is Venmo currently having issues? ›
User reports indicate no current problems at Venmo
Venmo is a mobile payment service that is owned by Paypal.
Which is better for crypto, Venmo or PayPal? ›
TIME Stamp: Venmo is best for personal use, PayPal for merchant and foreign transactions. Venmo and PayPal both offer the ability to send and receive payments, buy and sell cryptocurrencies, and have similar fees.
Venmo is an American mobile payment service founded in 2009 and owned by PayPal since 2013. Venmo is aimed at users who wish to split their bills. Account holders can transfer funds to others via a mobile phone app; both the sender and receiver must live in the United States.
What is the best platform to buy bitcoin? ›
Our picks of the best crypto brokers
- Crypto.com Exchange: Best for crypto trading apps.
- Coinbase Exchange: Best for transparency.
- BYDFi: Best for advanced trading.
- Binance.US: Best for trading bitcoin.
- Interactive Brokers: Best for crypto stocks and funds.
- Kraken: Best for customer service.
You are limited to $20,000 in cryptocurrency purchases per week. There is also a limit of $50,000 in cryptocurrency purchases in a 12-month period. You are also limited to $25,000 per week in crypto transfers. Learn more about transaction limits on Venmo.
How long does it take for Venmo to transfer crypto? ›
Crypto transfers to other Venmo users happen right away. If you are sending crypto to an external wallet, it can vary from a few minutes to a few hours depending on the blockchain used and network congestion – the app will give you an estimated completion time when you initiate the transfer.
How does Venmo crypto work? ›
When you buy or sell cryptocurrency on PayPal or Venmo (including when you checkout with crypto on PayPal), Paypal or Venmo will disclose an exchange rate and any fees you will be charged for that transaction. For currencies other than PYUSD, the exchange rate includes a spread that is earned on each purchase and sale.
Can I transfer crypto from PayPal to Venmo? ›
PayPal supports the transfer of cryptocurrencies between PayPal, Venmo, and other wallets and exchanges. PYUSD can be transferred between PayPal and exchanges that support it.
Does Venmo report crypto? ›
Will Venmo provide me any documentation for tax reporting? Individuals who have sold cryptocurrency on Venmo during the tax year will receive a Gains and Losses Statement, irrespective of their state of residence. Learn more about what tax documents you can expect from Venmo.
Can you send crypto on Cash App? ›
You can also send bitcoin using Lightning or the Bitcoin Network: Tap the Money tab on your Cash App home screen. Tap the Bitcoin tile.
