The news: Mobile payments service Venmo will launch a new feature, “Cash Back to Crypto,” that will allow users of the Venmo credit card to automatically exchange their cash back rewards for cryptocurrency, TechCrunch reports.
More on this: Venmo rapidly expanded the breadth of its banking services over the past year.
Why it’s worth watching: Rather than broadening Venmo’s features, Cash Back to Crypto weaves together existing services to boost customer engagement and retention.
Its growing suite of banking services is making Venmo look more and more like a neobank—even though it eschews that title—and is transforming Venmo into a super app that customers can use to manage their entire financial lives. Creating synergies within its product suite—like tying together its crypto offering and credit card with Cash Back to Crypto—can help it become a financial hub for more clients by encouraging users of one Venmo feature to also take advantage of others. The more Venmo services its customers engage with, the less likely they are to abandon the service and the easier it may be to cross-sell future offerings to them.