PayPal’s Venmo recently conducted a survey of over 2,000 of its users and found that many of its app devotees that use Venmo for person-to-person (P2P) transactions trust the app for purchases with merchants. And that’s good news for Venmo as they look for sources of revenue.
Venmo P2P transactions only generate fees from customers when they pay for an instant transaction, so in total are not profitable. By adding the option to pay with Venmo, they can now collect fees from merchants for transaction processing services.
Venmo discussed some of its findings in a blog:
Several years ago, we extended its use to our merchant community, offering them the ability to add Venmo at checkout to create a quick, simple and seamless experience. In this time, the community has grown to more than 65 million people who are looking to make Venmo a greater part of their everyday spending. For merchants who are interested in connecting with Venmo’s highly social and engaged audience, and find a way to rise above the competition, the time has never been better based on demand, market conditions and people’s interest in transacting with Venmo.
According to a new study of Venmo customers, nearly half (47%) of customers are interested in using Venmo as a payment method when checking out with merchants, ranging from merchants in everyday spend categories like groceries to those offering clothing, shoes and fashion apparel. The data shows that 89% of customers prefer to pay with Venmo because they trust the brand, it’s easy to use and because it allows them to split transactions.
Venmo has been progressively adding more and more services to its brand including credit card and check cashing options. Looks like Venmo has its sights set on becoming a neo bank.