Dan Schulman, CEO of PayPal Holdings (NASDAQ:PYPL) who own the peer-to-peer payment service app, Venmo stated recently that the users particularly the millennial generation are increasingly embracing the app and plans are underway to monetize the payment service to give them a chance to split the purchases and manage their own financial health for the future.
Venmo app was launched in December last year as part Paypal’s long term strategy to monetize the payment service. The app currently allows the users to process transactions worth up to two million of the Paypal’s retail partners. The fourth quarter of 2017 results revealed that Venmo transacted over $10.4 billion payments about 86% increment from the previous fourth quarter of 2016.
Schulman also commented that since the Bitcoin token is too volatile, Venmo stands a great chance to become a real currency given that it’s popular among the young people. Venmo’s social aspect is basically one of the key features that have attracted the young users to the payment service platform. In addition, the app has gained popularity among the millennials since it allows users to send money to friends globally without incurring any transaction fees.
According to Schulman, the emerging apps such as the Venmo are increasingly empowering the users to be part of the largest ‘sharing economy’ just like other home or ride-sharing services such as Uber and Airbnb. The young people rely mostly on their social networks and have embraced the technology well enough that almost all their activities are centered on their mobile phone.
Though Venmo app is a popular payment service, it’s yet to make profit for PayPal. The company recently rolled out the payment service to merchants as a way to increase its sales and make it the best payment option globally. Unfortunately the service has just attracted competition across the financial institutions including banks who also want to share the market. Currently, there are a number of firms offering similar services including the Square, which has a Square Cash app.
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