FinTech News
Venmo Expands to Allow Sending Payments to PayPal Users
Venmo’s payment network is growing by more than 200 million, thanks to a new update.
About Venmo’s PayPal Payment Feature
This week, Venmo announced that it was expanding its peer-to-peer payment platform. Now, Venmo users are able to send funds to PayPal accounts. This includes users in 90 markets where PayPal operates.
To send payments to PayPal users, Venmo customers can enter a phone number associated with the receiving account. Note that these contacts will show with a PayPal logo next to them. Payments can be sent to those in the United States or internationally.
Once users select a PayPal user, they’ll be able to enter how much they want to transfer and can add a transaction note. At this time, it does not seem possible for Venmo users to request payment from PayPal customers — only send outgoing payments from the app.
Venmo says that these payments, while selected in USD, will show to recipients in their preferred currency. However, the app will disclose currency conversion rates and any applicable fees before the transaction is completed.
In a press release, Venmo notes that this move is meant to relieve app fragmentation. A survey commissioned by the app found that nearly half of respondents had previously had to download or switch apps in order to pay someone back. Similarly, 30% admit that they’d forgotten to repay someone because they didn’t have the right app. This experience was even more common among Gen Zers (52%). Speaking of Gen Z, they are also nearly twice as likely as average Americans to send money internationally.
Venmo was acquired by PayPal in 2013.
What They’re Saying:
Announcing this update, PayPal Consumer Group GM Diego Scotti stated, “Venmo and PayPal have each become a trusted part of how people send and receive money – Venmo as the way friends split, share, and connect over everyday spending, and PayPal pioneering the global standard for cross-border money movement. By bringing these two ecosystems together, we’re making it seamless for Venmo and PayPal users to pay one another without friction or borders.”
Scotti added, “It’s about meeting people where they are and delivering simple, secure ways to move money in the moments that matter most, no matter what your preferred app is.”
My Thoughts:
This update seems like a long time coming, a no-brainer, and a “have your cake and eat it, too” — take your pick of cliché — for Venmo and PayPal. It’s always surprised me that two apps under the same corporate umbrella that do basically the same thing have stayed so separate for all this time. Personally, I think this integration is perfect as it makes it easier for younger Venmo users to send payments to PayPal “traditionalists” while still keeping that cool cache that the app enjoys.
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