Venmo Income and Usage Statistics (2020)

Venmo Revenue and Usage Statistics (2020)

Venmo began out in 2009 as a way for founders Andrew Kortina and Iqram Magdon-Ismail to spend every other with no getting to exchange money or create a cheque. The initial prototype worked more than SMS, Andrew and Iqram would send notes alongside the money to hold track of payments.

Although SMS functionality died with the app launch in late 2010, the social element of Venmo remains 1 of the app’s core functions. In early demos, Venmo founders proposed it as a way for musicians to sell songs and merchandise at reside gigs, and as a way for students to spend their favourite meals trucks.

Venmo makes use of peer-to-peer technologies to send income on the web, but it is not a holding account. Customers connect a debit or credit card to the app, which it can use to send and withdraw income from Venmo.

It took pretty much 3 years for Venmo to launch publicly, despite the fact that iPhone and Android customers could join by way of the app by September 2011. A couple of months following it officially launched, on the web payments provider Braintree acquired it for $26.two million.

A year later, PayPal agreed to an $800 million obtain of Braintree, which integrated Venmo. This was back when PayPal was a developing subsidiary in the eBay behemoth, which it split from in 2015. In the split, PayPal took Venmo with it.

PayPal revolutionized the way persons spend corporations on the web, but it by no means created a technique for paying pals effortlessly. Venmo removed all transaction expenses, permitting pals to send income on the web for totally free. This produced it a significant hit for persons that do not carry money, like students and teens, which led to it getting into the lexicon of technologies brands that are also verbs.

Venmo generates income by way of a 30 cents and two.9 % transaction charge for corporations. More than two million merchants accept Venmo in the United States. Venmo also charges a 1 % charge for customers who want to withdraw income quickly to their linked card, usual withdrawals take 1 to two days.

PayPal also sees Venmo’s social network as a possible income generator. Customers are in a position to spy on their pals, to see who they’re sending income to or what they’re spending it on. PayPal CEO Dan Schulman described this as the “secret sauce” in a 2015 interview.

It is not clear how PayPal turns this social spying into revenue. It has been recommended some variety of marketing platform, targeting customers primarily based on purchases or buddy activity. Venmo could also use information shared to create an analytics platform for merchants.

Venmo has been the topic of various cyberattacks, as hackers use the social platform to scrape information on millions of transactions. The app has produced adjustments to its API in the previous year, alongside informative articles on how to hold payments private, but for lots of the allure of Venmo is the social network.

In the previous two years, Venmo has noticed substantial development from ten million to 40 million customers. It has also doubled income and tripled payment volume. The seven biggest banks in America launched a competitor to Venmo in 2017, named Zelle, which shares some of the similarities with no the social platform.

Zelle has gained a robust foothold in the US, but Venmo nonetheless holds a commanding lead in the beneath 35 age bracket. Square’s Money App is also competing for these consumers. Only 20 % of Americans use mobile apps to spend for issues, a lot much less than China, India and Europe.

We have collected information and statistics on Venmo’s income, usage and demographics. Study on under to obtain out a lot more.

Venmo Overview

Launch date August 2009 (March 2012 public launch)
HQ New York City, US
Individuals Dan Schulman (PayPal CEO), Mark Britto (CPO)
Business Fintech
Business enterprise variety Subsidiary
Parent business PayPal

Venmo Customers

2012 three,000
2015 three million
2016 five million
2017 ten million
2018 23 million
2019 40 million
2020 52 million

Note: PayPal refers to Venmo customers as these who use the app a lot more than after a year.

Sources: The Street, Quickly Firm, CNBC, Venmo

Venmo Month-to-month Active Customers

2017 7 million
2018 17 million
2019 26 million

Sources: Quickly Firm, Ark-Invest

Venmo Annual Payment Volume

2014 $two.three billion
2015 $7.five billion
2016 $20 billion
2017 $34 billion
2018 $62 billion
2019 $101 billion

Sources: Fortune, QZ, Statista

Venmo Income

2015 $one hundred million*
2018 $200 million
2019 $300 million
2020 $450 million**

Note: * Estimated worth ** Projected income by PayPal

Sources: The Street, QZ, CNBC

Venmo Valuation

2013 $150 million
2018 $15 billion
2020 $38 billion

Note: 2020 valuation estimate makes use of Venmo’s percentage of income generation for PayPal ($300 million into $17.77 billion, 16%) as guide for market place cap worth.

Sources: Ark-Invest

Venmo vs Money App vs Zelle: Payment Volume

Note: Square total payment volume involves revenue from outdoors the Money App. If broke down, Venmo would most most likely be ahead of Money App.

Venmo other crucial stats

  • Venmo transacted a lot more than $one hundred billion in 2019 and is on track to attain $150 billion this year (Statista)
  • Venmo is projected to have an annual income run price of $450 million in 2020 (CNBC)
  • More than two million US merchants accept Venmo (BusinessWire)
  • Venmo contributes about 15 % to PayPal’s total income
  • Venmo has more than 50 million customers (Venmo)
  • Around 65 % of them are active after a month (CNBC)
  • Customers typical 5 transactions per month
  • The typical transaction quantity has dipped in the previous year to $75, from a higher of $83 in 2017 (Ark-Invest)
  • This is considerably reduce than competitor Zelle, which averages $300 per transaction (WSJ)
  • 50 % of customers are in between the ages 25 to 34, 33 % are in between 18 and 24
  • 61 % of customers are male, 39 % female (Mediapost)
  • 14 % of adult Americans use Venmo for peer-to-peer transactions (PayPal)
  • Pizza slice and really like heart are the most well-known emojis utilised on the platform (Venmo)

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