Venmo has changed the way individuals move money. The peer-to-peer payment app, owned by PayPal, is known for its emoji-filled newsfeed where users can see who their friends are paying, and for what. It ranges from roommates reimbursing utilities and rent checks to friends paying each other back for lunch or last night’s bar tab.
But does Venmo actually make money? For years, it hasn’t. In 2019 though, the app has made progress toward breaking even, PayPal Chief Operating Officer Bill Ready said. For now, the team at Venmo is more concerned with expanding its share of the digital payments market.
Still, there are concerns about privacy for users and security for their money. There’s also competition from the big banks, which launched their own peer-to-peer payment option called Zelle. Payments company Square also has a rival called the Cash App.
Many on Wall Street are watching closely to see whether this millennial-driven payments phenomenon is a flash in the pan or here to stay.
Author: Kate Rooney and Andrew Davis