![]() Stitching together the pieces of modern money managementĪs with other toll booth businesses like Visa ( V 0.70%) and Mastercard ( MA 0.77%) (in which a fee is earned when someone executes a financial transaction), PayPal's business has a high rate of fixed costs. As the volume of transactions has a direct bearing on PayPal's revenue, it's clear that higher adoption of Venmo among consumers is a key plot point in PayPal's recent history. Management also said Venmo revenue growth specifically was more than 60% during the first three weeks of July. That implies Venmo payment volume was about $24 billion in Q2 2019, making up 14% of total payment volume of $172 billion. Of that amount, Venmo accounted for $37 billion in processed payment volume, a 52% increase over a year ago and comprising 17% of total payment volume. The total payment volume PayPal processed in Q2 2020 increased 29% year over year to $222 billion. That doesn't help us understand if Venmo is propping up or dragging down the growth rate, but some further information gives a clue. Management didn't disclose how many new Venmo users signed up during the last quarter, but total active accounts across the whole family of applications did increase 21% from last year. Of the total, over 60 million active accounts were on Venmo, accounting for just 17% of PayPal's total. At the end of June 2020, PayPal said it had 346 million active consumer accounts across all of its businesses (PayPal, Venmo, Xoom, iZettle, etc.) - including 26 million merchant accounts. ![]() PayPal doesn't provide stand-alone financial details for Venmo, but it does provide some key details to help shareholders understand what the subsidiary means to the business overall. The company reported accelerating year-over-year revenue growth of 22% to $5.26 billion and free cash flow growth (revenue less cash operating and capital expenses) of 112% to $2.2 billion in the second quarter of 2020.ĭigital wallet and peer-to-peer payments app Venmo - acquired back in 2013 for a mere $800 million when PayPal was still part of eBay ( EBAY 0.93%) - is an important part of the growth story. This method works on both desktop and mobile devices.Digital payments and e-commerce are booming during the pandemic, and more people than ever are turning to PayPal Holdings' ( PYPL 1.48%) services. That means you will not have to log in to your account every time you operate. On the other hand, PayPal also incorporates other tools, such as the One Touch function, through which it is possible to make purchases with a single click. That means that it is an accepted payment method in many online merchants: hence it also has a high transaction limit, much higher than Venmo. We should note that PayPal is used with a massive adoption rate in online shopping. PayPal, for its part, previously supported contactless payment via Q.R. That makes it possible to make contactless purchases using Q.R. That means using credit cards, debit cards, or associated bank accounts in both cases is possible.Īn important change has been that Venmo has gradually opened up the presence of retailers who can offer their payment gateway services. It is possible to use different methods within both platforms to make payments. Once verified, you can trade up to $60,000, limited to a maximum of $10,000 per transaction.Ĭheck ➤ Can I buy crypto on Venmo? Payment Methods PayPal does not allow trading if you are not verified. ![]() After account verification, this limit may increase up to $4999. In this case, fees apply, which may vary depending on where the transaction is being made.Īs for shipping limits, in the case of Venmo, the limit is set at $299. That can be done even when the recipient does not have a PayPal account. On the other hand, sending money to someone’s bank account is possible. However, in this case, PayPal links are created that allow a user to send money. In the case of PayPal, it is also possible to send money. That is a functionality very similar to those of social networks. In addition, it will be possible to check the purchases that your friends share. Sending money in the case of Venmo can also be done by scanning the code in the application. You only need to know the contact’s phone number (you can use the phonebook of the mobile device itself). To better understand how the two options are similar and how they differ, we will separate the functionalities into different sections and compare them: Send money onlineĪs we have already said, in the case of Venmo, it is only possible to operate through mobile devices. Differences and similarities between PayPal and Venmo It is important to note that while both options connect to the Internet for trading, Venmo only operates exclusively through mobile devices.
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