Venmo Changes Fee Structure for Crypto Transactions

VenmoVenmo sent out an email to users on Wednesday announcing changes to the way they structure fees around crypto transactions. Beginning at the end of March, PayPal, the operator of Venmo, will charge flat fees for crypto trades.

“This change is part of our ongoing commitment to provide transparency, ease of understanding and clarity to our customers,” a PayPal spokesperson said via email to Barrons. “The changes will be effective for both PayPal and Venmo customers on March 21, 2022.”

According to the email, the company’s new fees are based on dollars, not percentages for transactions less than $200.01. For transactions between $1.00 and $4.99, the new fee would be 49 cents. For transactions between $5.00 and $24.99, the fee is 99 cents. For orders between $25.00 and $74.99 the fee jumps to $1.99.

The highest flat fee transaction on Venmo is a whopping $2.49 for transactions that fall between $200.01 and $1,000. Purchase amounts that fall between $200.01 and $1,000 and anything above that will be hit with a percentage-based fee at 1.8% and 1.5%, respectively.

Venmo has been trying to operate with crypto in mind for some time. Venmo users have autonomy to make crypto trades and transactions on a limited basis. Users are limited at $20,000 a week in crypto transactions with a cap on $50,000 in a twelve month period. Venmo does not allow users to directly send crypto currencies to each other without first converting them into USD.

As the company has been making moves in determining crypto’s role in their business lately, PayPal may be looking to use Venmo as its digital asset-arm as the crypto payments space continues to develop.