PayPal’s Venmo and WeWork adopt crypto simultaneously

PayPal app Venmo and workspace play WeWork both revealed they’re integrating cryptocurrency into their core offerings on Tuesday.

In a press release, New York-headquartered WeWork said it will hold all the crypto assets it receives, similarly to Tesla.

WeWork will leverage crypto exchange Coinbase to pay landlords and third-party partners who choose to handle digital assets.

WeWork specifically noted it accepts Bitcoin and two stablecoins (Circle’s USD Coin and Paxos), as well as “several others.”

Those others are presumed to be the cryptocurrencies supported by WeWork’s chosen payments partner BitPay.

BitPay is the one of the largest payments processor in the crypto space but has copped flak for its apparent centralizing influence. 

WeWork added the now NASDAQ-listed Coinbase will be the first company to pay for membership in cryptocurrency. WeWork didn’t specify which one.

Venmo eyes $900M annual revenue target

Meanwhile, Venmo is moving to allow its 70 million users to buy and sell Bitcoin, Ethereum, Litecoin, and Bitcoin Cash in-app with a minimum of $1.

The US-only app, which is mostly used to send small sums of cash between friends, will offer educational videos and guides. Venmo users can also share their crypto activity to their feeds.

Last November, PayPal chief exec Dan Schulman tipped Venmo’s revenue to reach $900 million this year — double what it generated in 2020.

The company no doubt hopes introducing crypto to Venmo users will help reach that target.

Really, these payment applications running bucket-shop "cryptocurrency" schemes needs to stop.https://t.co/Ld4IZpnx2a

It isn't a cryptocurrency if you can't transfer it out. Its a speculative stock-market simulator, and should be regulated as such.

— Nicholas Weaver (@ncweaver) April 20, 2021

[Read more: Facebook’s Diem is closer but it’s still a boring stablecoin]

However, Venmo’s crypto trades aren’t free. The small print states the company will earn a spread on each purchase and sale, mimicking PayPal.

Nor will Venmo support deposits and withdrawals to external crypto wallets, so users are forced to buy their crypto directly from Venmo — again borrowing from PayPal’s crypto playbook.

Paxos will handle trading and custody of user funds, the same company PayPal opted for when it rolled out its crypto service last month.