PayPal's strong Q1 showed Venmo is a force to be reckoned with in the P2P space — but it isn't without competition:
Avery Hartmans/Business InsiderVenmo is a force to be reckoned with in the P2P space — but it isn't without competition.
Venmo counts 40 million active accounts in the US. That figure, which equates to roughly 14.5% of PayPal's total user base, puts it among the largest platforms in the US: For context, Venmo's user base isto Uber's US user base. The service also posted $21 billion in volume last quarter, marking growth of 73% annually — a slight deceleration from Q1 2018's 80% growth rate, but still a massive gain.
Zelle's volume continues to surpass Venmo as the P2P service keeps growing. Zelle grew 54% to reach $39 billion in volume in Q1 2019 — almost double Venmo's quarterly volume. Zelle's network, which counts hundreds of banks and boasts an addressable base ofPayPal needs to continue to expand Venmo's monetization and commerce initiatives to ensure the service has maximum value.
There's likely room for both Venmo and Zelle to coexist, given their distinct use cases. Zelle's volume is still nearly double that of Venmo, but as the two firms have grown, their use cases have become more distinct: Venmo's average transaction size is, while Zelle's is much larger at $265. These figures indicate that customers are using Venmo for one-off, lower-value social payments, and Zelle for larger, less frequent transfers.
But PayPal needs to accelerate its monetization push for the service before Venmo further erodes its bottom line. Major P2P gains have been the leading cause of PayPal's declining take rate, as P2P is free for customers and therefore hard to monetize. Venmo's new commerce initiatives are helping the service to generate revenue through fees: In Q4 2018,
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Venmo has 40 million users, PayPal reveals for first timePopular payment app Venmo has ushered in 40 million users to its platform, its parent company PayPal announced on Wednesday.
Read more »
Venmo now has over 40 million active users as payments skyrocketVenmo now has over 40 million active customers, parent company PayPal reveals in its earnings report.
Read more »
Venmo Has 40 Million Users, Outnumbering Most Big BanksMore than 40 million individuals used Venmo in the past 12 months, making the digital-money transfer service among the most popular financial apps in the country, owner PayPal Holdings reported in its quarterly results.
Read more »
PayPal tops earnings estimates while falling a hair short on volumePayPal Holdings Inc. beat first-quarter earnings and revenue estimates on Wednesday, while also releasing active-account data on its Venmo service for the...
Read more »
Venmo's path to profitability for PayPal: Cashing in on $62 billion payments processed per yearVenmo has changed the way people reimburse each other. From rent to dinner checks and bar tabs, to 'venmo' someone has now become a verb. But have you ever wondered how the app makes money?
Read more »
PYPL: PayPal Holdings Inc - Stock Quote and News - CNBCPayPal saw a bit of a mixed quarter, reporting revenue in-line with estimates and EPS 10 cents above consensus. For the first time, it released active accounts for Venmo, naming 40 million active users.
Read more »
Venmo has digital user base bigger than Square Cash and the banks, but no plan to profit from itPayPal's Venmo is seeing huge growth, with 40 million users disclosed for the first time, but CFO John Rainey says the company is in no rush to generate profits from the millennial-focused, peer-to-peer payments app.
Read more »
Venmo has 40 million users, PayPal reveals for first timePopular payment app Venmo has ushered in 40 million users to its platform, its parent company PayPal announced on Wednesday.
Read more »
Venmo Has 40 Million Users, Outnumbering Most Big BanksMore than 40 million individuals used Venmo in the past 12 months, making the digital-money transfer service among the most popular financial apps in the country, owner PayPal Holdings reported in its quarterly results.
Read more »
Venmo now has over 40 million active users as payments skyrocketVenmo now has over 40 million active customers, parent company PayPal reveals in its earnings report.
Read more »