PayPal expects to rely more on Pay With Venmo over time — hoping more merchants accept the service to win over users:
a 26% year-over-year increase and is consistent with the 25-27% total payments volume growth it's seen in each of the last six quarters. Additionally, PayPal added 9 million net new active accounts in the quarter for a total of 286 million, which is up 17% YoY, decelerating slightly from the 18% YoY increase itVenmo was a key part of PayPal's performance, growing its TPV by 70% YoY to $24 billion, gaining ground on Zelle.
And its transaction take rate came in at 2.25%, dropping 13 basis points, with P2P's growth accounting for half this drop, CFO John Rainey said on the company's, making Venmo's growing volume a drag on the firm for the time being, though its impact is declining. PayPal already has plans in action to boost Venmo's ability to monetize, but its goals haven't been fully realized yet. The firm hasInstant Transfer is the biggest driver of Venmo's monetization as it currently stands. Venmo has been able to get approximately 15 million users to take part in a monetizable transaction — nearly 40% of the 40 million user base ithad at the end of Q1 2019.
But the company expects to rely more on Pay With Venmo over time — and convincing more merchants to accept the service in order to win over users will be key to success. Garnering Pay With Venmo engagement may prove difficult as it requires Venmo to convince consumers to use it as a payment method in an unfamiliar way.
among younger consumers, it would do well to target merchants that appeal to this base, as that would maximize the impact of each new merchant it adds.pass to Business Insider Intelligence and gain immediate access to the Payments & Commerce Briefing, plus more than 250 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally.
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