Users of mobile payments company Venmo can buy and sell cryptocurrencies such as Bitcoin, Litecoin and Ether, according to a statement Wednesday.
The PayPal Holdings, Inc.-owned company says the feature will be available for some users this week and for others within the next few weeks. Users will find a cryptocurrency option at the top right of the homepage menu, the company said.
"Customers will have the ability to buy and sell cryptocurrency using funds from their balance or a linked bank account or debit card," the company said.
Venmo said users can start buying cryptocurrencies for as little as $1. However, each transaction will have a minimum fee of $0.50. Users can make a cryptocurrency transaction of up to $20,000 each week and a limit of up to $50,000.
Venmo didn't say if users can pay for goods and services using their cryptocurrency balance. However, experts said the feature might come later.
PayPal allowed users to start paying with cryptocurrency in March. PayPal said the transaction works seamlessly - it converts cryptocurrency balances into U.S. dollars automatically and fee free.
Venmo won't support peer-to-peer cryptocurrency trading immediately and users won't be able to transfer cryptocurrencies from one account to another.
"Venmo only supports the purchase and sale of cryptocurrency using Venmo accounts. To complete P2P transactions with Venmo all cryptocurrency assets held with Venmo must be sold and thus converted into (dollars)," the company said.
PayPal and Venmo use the Paxos cryptocurrency brokerage service. PayPal recently acquired a conditional BitLicense by the New York State Department of Financial Services which allows it to let customers buy and sell cryptocurrency. The license applies to PayPal and Venmo users in mainland U.S. only.
