How does Venmo make Money ?
by Dibakar Bala
How does Venmo make Money ? Here’s the Top 10 Points about it. Literally, all you need to know :-
- Venmo is a payment gateway targetted towards the Millennials of the US.
- It is a payment gateway which had the intention to take a P2P transaction and tuen it into an experience. They did this by integrating Social Media into their Payment Gateway. People literally share their transaction on social media using Venmo.
- Venmo is FREE for peer-to-peer transactions if you refill the wallet from your Bank Account.
- Although it does charge 3% on Credit Card Payments made by the users to refill the wallet
- In comparison to its Parent Company PayPal, it is 0.1% costly when it comes to Payments made using Debit/Credit Card. As Paypal charges you 2.9% when you do a similar transaction.
- Making Money from their Customers isn’t really a matter of concern for Venmo. They have officially declared that they don’t make any Money out of Friend-to-Friend payments.
- However, they work with a number of Businesses that accepts Venmo as a Payment. And in turn of their integration with Venmo, it charges these Businesses a small amount out of every transaction. ( The exact percentage although has not been shared publicly )
- Venmo is targetted only towards the younger generation of US who are under the age of 30.
- Apart from making money, Venmo is a great beneficial Strategy for its parent company Paypal. With popularity of Venmo, more and more merchants are expected to join, thereby helping PayPal to acquire additional Merchants.
- While Venmo reports Zero Revenue , trying to solve how does Venmo make money . Its parent company made $3239 Million in 2017.
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