Venmo aims to be more than just an app for paying friends with its latest update.
On Wednesday, the PayPal-owned payment platform debuted several new debit card benefits and expanded the ability to make payments with retailers such as TikTok Shop and Uber. The updates signal Venmo is trying to become more of a full-service fintech service, not just a peer-to-peer payments app.
The revamped Venmo Debit Card, which was first introduced in 2018, now features a tap-to-pay capability, which could help Venmo position itself to capture a larger share of everyday transactions. Additionally, cardholders now get 15% cash back at Lyft, McDonald’s, Sephora, Walgreens, and Walmart.
Venmo also rolled out the option for cardholders to initiate automatic transfers, enabling them to schedule transfers and set specific balance thresholds that automatically trigger reloading when the balance falls below a certain level. Users can also make international purchases without incurring foreign transaction fees, a notable perk for frequent travelers.
For all shoppers, Venmo now allows users to make payments at brands such as Domino’s, Instacart, TikTok Shop, and Uber.
These updates come after Cash App’s Q1 shortfall, as its parent company, Block, revealed that consumers used the app less than anticipated, resulting in a gross profit of $1.38 billion, which was below its expectations.
In contrast, Venmo reported a 20% increase in revenue compared to the previous year. The usage of pay with Venmo jumped, with total payment volume increasing by over 50%, and the number of monthly active accounts rising by 30%.
Although Venmo has seen success, Zelle continues to maintain a significant portion of the U.S. peer-to-peer payments market, achieving a record high of over $1 trillion in payment volume in 2024.
Source link
#Venmo #introduces #debit #card #benefits #payment #options #rival #Cash #App #struggles
Post Comment