“Our vision for Venmo is to not only be the go-to app for payments between friends, but also a ubiquitous digital wallet that helps consumers spend wherever and however they want to pay, regardless of device,” said Paypal’s Chief Operating Officer, Billy Ready. “Through 2017 and beyond, we will continue to evolve the payments experience that has helped make Venmo a cultural staple, while also applying that same magic to split, share and pay in new ways. And we’ll continue to innovate on behalf of our merchant customers to provide ways to engage Venmo customers to drive more sales.”
Retailers should benefit from the exposure that Venmo provides, considering its users are more vocal about their monetary choices. The addition of Venmo also does not require integration work. Instead, Paypal will update its platform to include Venmo as a payment method. Two payment options may sound confusing, but Paypal notes that users will be able to differentiate without problems.
For now, Venmo only works in-app and on the mobile web. The feature is not currently available via desktop web. Users will be invited to activate the option to shop online through a notification. They will also receive notifications of purchases in the app and be able split purchases with friends and business partners. Paypal’s Braintree merchants can also choose Venmo as a payment option in the app and on the mobile web. Additionally, Venmo is being offered as a way to accept donations for online charities. Save the Children is the first organization to accept donations with Venmo.
The popular service is a staple among millennials and very influential in the United States. The payment app grossed more than $25 billion in transactions this year. A recent survey by LendEDU revealed that 65% of millennials that use P2P apps. 68% of those users claimed to Venmo more often than others. The update is Paypal’s attempt to hold off its competitors. The P2P service is currently facing increased competition from Zelle, Square Cash and Apple Pay.
In the future, Venmo will introduce instant bank transfers. The feature is currently rolling out for Paypal users throughout the United States.