PayPal Holdings Inc (PYPL)’s Shrewd Acquisition Is Yielding Results
PayPal Holdings Inc (NASDAQ:PYPL) acquired Venmo in 2013 with an intention to focus on peer-to-peer money transfer app. It is proving to be a shrewdest acquisition as the consumers are moving towards the digital payment age. Until now, the company has not revealed the number of users who have used the app. However, the payment processor provided some glimpses of worth in the payment volume when it said that that total payment jumped 213% to $7.5 billion last year. Significantly, one-third of it came in the fourth quarter.
Still To Monetize
Though PayPal Holdings Inc (NASDAQ:PYPL) indicated the transacted volume of Venmo, the company has yet to monetize it. The current focus appears to be to popularize it as much as possible and then monetization can happen a little later, though investors and analysts are expecting any time in the upcoming periods.
The payment processor indicated that users can now pay a few select businesses though it might take some more time before it makes before trying to make money from the mobile app. Its CEO, Daniel Schulman, has reportedly said that there would not be any major financial impact in the current year from Venmo. However, he expects the financial expect in the next two years.
A Lot Of Stuff To Come
PayPal Holdings Inc (NASDAQ:PYPL) believes that there would be a lot of stuff to come on Venmo on the peer-to-peer side. That included splitting money for tickets to a baseball game, as well as, food. The company disclosed that Venmo would enable some users to pay within two apps, i.e. Munchery and Gametime. The company’s CEO said that whenever it thinks about other apps, it always thinks about the most-aligned experience with.
PayPal Holdings Inc (NASDAQ:PYPL)’s Schulman said that the upcoming 12-month period would be a crucial factor as consumers in markets such as San Francisco and New York offer the firm with user data. The company’s merchants might also join following Gametime and Muncherry. Also, Schulman said that it was not going to be just another buy button. He said that he was able to see the demand from merchants for Venmo.
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