Venmo has played a key role in the growth of PayPal's POS terminal – Business Insider

This represents an increase of 26% from one year to the next (year-on-year) and corresponds to the growth of the total volume of payments (TPV) from 25 to 27% observed over the last six quarters. In addition, PayPal added 9 million new net active accounts during the quarter for a total of 286 million, up 17% year-over-year, which slowed slightly compared to the 18% increase recorded in the second quarter of 2018.

Venmo was a key part of PayPal's performance, increasing its TPV by 70% YoY to $ 24 billion, gaining ground on Zelle. The 70% year-over-year increase is a deceleration from its performance in the second quarter of 2018, with an increase of 78% year-on-year. this quarter remains promising given its size.

It is also interesting to note that Zelle, one of Venmo's leading digital P2P competitors, has experienced slower growth than Venmo, with the value of its payments increasing 56% year-over-year to 44%. billions of dollars; So, while Venmo is still behind, it reduces the gap in POS.

Despite its strong growth, PayPal is currently not able to really capitalize on Venmo as the service is still not profitable and harms the company's participation rate. The total usage rate of PayPal for this quarter was 2.5%, marking at least six consecutive quarters of the decline or stagnation of the metric indicator.

And its transaction rate is set at 2.25%, down 13 basis points, P2P growth accounting for half of this drop, said CFO John Rainey, about 39, announces the results of the company. its impact is down.

PayPal is already considering strengthening Venmo's monetization capacity, but its targets are not yet fully met. The company has introduced Pay With Venmo, the Venmo card and instant transfer to help monetize the service.

• Instant Transfer is the main driver of Venmo's monetization in its current version. Venmo has managed to engage approximately 15 million users in a monetizable transaction – nearly 40% of the 40 million users it owned by the end of the first quarter of 2019. Instant Transfer is currently the largest largest contributor to Venmo monetization, with Pay With Venmo. and Venmo Card, which represents about the other half, said CEO Dan Schulman at the call of the results. This may be the case because Instant Transfer is the feature most directly related to peer-to-peer transactions and is likely sought by consumers.
• But the company hopes to be able to rely more on Pay With Venmo over time – and convincing more merchants to accept the service in order to win users will be the key to success. Getting funds with Venmo can prove difficult because it forces Venmo to convince consumers to use it as a means of payment in an unknown manner. But Venmo added Fandango, TodayTix, 1-800-Flowers, and more, to the ranks of merchants accepting Pay With Venmo, according to Schulman, and allowing consumers to consistently pay with Venmo with a variety of merchants could convince consumers of Use this function. more regularly, reinforcing Venmo's monetization efforts. Considering that Venmo is particularly popular among younger consumers, it would be good to target the merchants who use this base, as this would maximize the impact of every new merchant added.

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