Payment processing companies are constantly searching for ways to expand their range of products. Recently, featuring cryptocurrencies became a real trend among services such as PayPal. The sudden interest in crypto can be explained by the growing number of crypto investors and the massive capitalization of the crypto industry, which surpassed $1 trillion in 2021.
Venmo is the newest addition to the list of payment platforms that opened themselves to crypto. Now, Venmo clients can trade digital assets and actively participate in the community of crypto enthusiasts. If you wish to accept crypto just like Venmo and thousands of other businesses, be welcome to utilize NOWPayments’ cryptocurrency payment solutions.
Key Points:
- Venmo is a slick and user-friendly payment app.
- Venmo users can buy, sell, and hold crypto but cannot transfer it outside of the platform.
- Unlike Venmo, NOWPayments does not control holdings of its partners and enables them to accept cryptocurrency as payment and donations.
What is Venmo?
Venmo is a peer-to-peer payment platform that makes it extremely convenient to send and receive money using a mobile app. The Venmo app delivers the highest level of versatility, allowing users to foot their bills with their debit cards, bank account, credit cards, and Venmo balance. Essentially. Venmo lets users add all of their assets to their Venmo account and manage them in the app installed on their mobile phones. Moreover, Venmo is completely free. This means that Venmo users do not have to pay monthly or annual fees. They also do not bear expenses when sending money from cards or making bank transfers.
Venmo’s app is more than a payment tool, it is a full-blown social media where users can interact with each other. Venmo users even can share each of their payments with their friends and accompany their transfers with emojis or messages. People who are friends on Venmo also can split their expenses and pay for them together.
Venmo is a well-established brand, and it is offered at some businesses as a payment method. For instance, Uber passengers can pay for their rides using Venmo. Perhaps, the main shortcoming of Venmo is that it is available only to U.S. citizens. As a result, international transfers are also not an option. All transfers take place between the U.S. banks.
What is Bitcoin?
Bitcoin is the first digital currency that runs on a blockchain, a decentralized and encrypted ledger. Bitcoin is referred to as a cryptocurrency, a type of money which is fully virtual and does not exist in a physical form. Nevertheless, despite being a form of electronic cash, Bitcoin has a substantial value which has been rising steadily over the past decade. In 2021, Bitcoin set a new record high when its price reached $60,000.
One of the key features of Bitcoin is its transparency. Every Bitcoin transaction gets recorded and stored forever on the blockchain. Thus, all the Bitcoin data remains publicly available and can be accessed by anyone. This reduces the risk of hacker attacks since there is no sensitive information hidden from the public.
As the name implies, blockchain constitutes a chain of blocks. Each block contains a set of transactions which get verified by the majority of the Bitcoin owners. Once the consensus is reached, the block joins the rest of the chain, and its information becomes public. No transaction can be modified or changed, which guarantees security and eradicates any possibility of fraud.
Finally, since Bitcoin is decentralized, there is no single authority controlling it. Thus, Bitcoin users cannot be denied services or in any way be prevented from participating in blockchain.
How can I use my Bitcoin on Venmo?
As mentioned above, Venmo grants its users access to Bitcoin and other cryptocurrencies. Namely, Venmo clients can buy and sell four types of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Although the selection of digital assets is pretty limited, it is still quite sufficient for those people who are only starting their crypto journey. Venmo views its crypto tools as an entry-level solution. That is why Venmo users can buy cryptocurrencies for as little as $1.
Buying and selling are the only functions available to crypto owners on Venmo. When holding crypto in Venmo’s wallet, users do not fully own their digital assets. They cannot transfer them to an address outside of Venmo. In fact, they do not have a crypto address in the first place. Moreover, they are unable to transfer their cryptocurrency funds to other Venmo customers.
Therefore, Venmo is an ideal choice for trading. Buying Bitcoin when its price is low and selling it when its price is high is a legit strategy for Venmo users.
Despite the fact that Venmo is used as a payment method, its clients cannot pay with their Bitcoin or other crypto. Venmo users also have to be mindful of the transaction and exchange fees they must pay for each crypto trading activity. Since Venmo implements certain elements of social media in its app, crypto investors can share their Bitcoin purchases with their friends in their feed.
How can I accept Bitcoin as a form of payment
If you already use Venmo and want to go beyond simply buying and selling Bitcoin, you can begin accepting it as a payment or donations method. NOWPayments is ready to assist you in deploying a crypto payment gateway.
NOWPayments offers several tools for featuring Bitcoin payments, including crypto invoices which are reusable and enable your clients to pay you in crypto by simply scanning a QR code. You can also issue individual crypto invoices by employing a virtual Point-of-Sale terminal.
If you own an eCommerce store and host it on PrestaShop, WooCommerce, Magento 2, WHMCS, OpenCart, Zen Cart, Shopify, and Shopware, you can use crypto plugins.
Non-profit organizations and bloggers can deploy crypto donations using widgets, buttons, and links.
Conclusion
Venmo is a user-friendly payment app that lets people buy, sell, and hold Bitcoin and other cryptocurrencies. Nevertheless, Venmo prevents its clients from fully owning their digital assets. NOWPayments is a non-custodial service, unlike Venmo, which enables its partners to accept cryptocurrencies and retain full control over their digital holdings.