SAN JOSE, Calif.—Just how popular is P2P becoming with consumers today?
A new report shows that Venmo is driving a growing portion of PayPal’s overall transaction dollar volume.
PayPal’s popular mobile payments app Venmo processed a record $6.8 billion in the first quarter, double the amount from the same period last year, Fortune reported.
“Venmo, which lets users send money to each other instantly, much like PayPal's core service, has been among the crown jewels in PayPal's payments portfolio. It acquired the service, which is popular with younger users, three years ago as part of its $800-million acquisition of payment processing startup Braintree,” Fortune explained.
But just how much impact Venmo is having on PayPal's financial results is still unclear, said Fortune. It was only last year that PayPal started generating revenue from the service by letting merchants accept Venmo as a payments option. Merchants pay a small fee for each transaction. PayPal's chief financial officer John Rainey said during an earnings call that the company expects a "steady" increase in revenue from Venmo, noted Fortune.