Key Venmo Statistics
- About 35% of Venmo’s users are between 18 and 29 years old
- If merchants accept Venmo, at least 47% of customers would pay with it
- About 47% of Venmo’s user base is not American
- Venmo’s year total payment volume grows almost by 70%
- About 83 million people use Venmo, and most users live in the US
- In 2021, Venmo processed nearly $230 billion in total payment volume
- Venmo is one of the top three mobile payment apps in the United States
Introduction to Venmo
Andrew Kortina and Iqram Magdon-Ismail launched Venmo in 2009. The founders wanted a payment method that didn’t need them to write a cheque or exchange cash to pay each other.
Venmo’s first prototype was not a payment app but functioned over SMS. The Venmo founders would send notes with money to record payments. Eventually, Venmo launched an app in late 2010.
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Venmo utilizes peer-to-peer technology to send money online and has recently started allowing users to hold cash in their accounts. Users can also link a credit or debit card to the payment app and use it to withdraw or send money from Venmo.
With the number of Venmo users growing, the company was ready to launch publicly after nearly three years.
A few months after the company’s public launch, the online payments provider, Braintree, purchased Venmo for $26.2 million. A year later, PayPal acquired Braintree in a deal that included Venmo for $800 million.
Venmo’s parent company, Paypal, changed how people and businesses transact online. However, PayPal didn’t have a system that allowed friends to pay each other easily.
Consequently, Venmo allows friends to send money online without paying transaction costs.
The number of young Venmo users, such as teens and students, has increased annually. Most Venmo’s active users find the app convenient because they don’t have to carry money all the time.
About Two Million Merchants Accept Venmo
Venmo is one of the top three companies offering mobile payment services in the United States. The company’s total payment volume continues to grow exponentially.
Over two million merchants accept Venmo because of its large user base in the United States. An average Venmo user performs around five Venmo transactions in a month. However, Venmo’s parent company PayPal is the most used payment method.
Venmo Users Account for About 18% of the International Crypto Wallet With Payment Features Market
Venmo added crypto services in 2021, but it’s already among the top three crypto wallets by average active users. Venmo’s main competitors in this market are Coinbase and Paypal.
The Number of Venmo Users Is About 83 Million
The United States has the most number of people who use Venmo. In 2021, Venmo users grew by 12% from the previous year. Experts predict that the number of users will be more than 100 million in 2026 and will increase by 5.4% from the previous year.
Venmo User Statistics Show That Generation Y Uses Venmo Regularly
Venmo statistics show that about 68% of Gen Y who use payment apps use Venmo as their first choice. Other payment apps that are a hit among Gen Y include a bank app, Zelle, and Cash App.
About 35% of People Who Use Venmo Are Between 18 and 29 Years Old
The latest Venmo statistics show that Venmo is popular among young people. Interestingly, 23% of the US adult population is within this bracket. Most users also use other payment apps that are popular among young people, such as Apple pay and Google pay.
Furthermore, most users are wealthier than the average US customer. Venmo users are more likely to be well-educated than the average American. According to Venmo user demographics, about 67% of its users are highly educated.
About 47% of Venmo Users Are Immigrants
Peer-to-peer technology is popular among immigrants, with Venmo and Zelle being one of their favorites. People who use Venmo make a lower average transaction amount than those who use Zelle. While Venmo’s transaction limit is $3000 daily, the user’s bank sets Zelle’s limit.
Frequently Asked Questions (FAQs)
1. How does Venmo generate revenue?
Venmo generates revenue by charging a 2.9 percent transaction fee on businesses. Venmo revenue also grows through a one percent fee for Venmo users who want to withdraw money instantly to the linked debit or credit card. Usually, withdrawals take Venmo users up to two days.
Paypal believes Venmo’s revenue will grow in the next ten years due to the success of the company’s social network. Venmo customers can obtain information on who their friends are sending money to.
In a 2015 interview conducted by Business Insider, Paypal CEO Dan Schulman termed this a ‘secret sauce.’ While it’s unclear how this social spying will increase Venmo’s annual revenue, some suggest an advertising platform targeting active users based on friend activity.
2. Is the Venmo payment method secure?
Venmo has had its fair share of cyberattacks in the past few years. Hackers take advantage of the social platform to steal the data of millions of Venmo transactions.
Venmo changed its API in 2022 to protect itself against these cyberattacks. Additionally, the company published informative articles on how to pay with Venmo safely.
3. Are there any competitors to Venmo?
Yes. In 2017, the seven most prominent banks in the US launched Zelle. The app and Venmo share similar features except for the social platform. Square Cash is another strong competitor to Venmo. The app also provides investing and Bitcoin services.
4. What is Venmo’s net worth?
Venmo’s net worth was estimated to be 38 billion in 2020.
5. What are Venmo’s age demographics?
About 33% of Venmo users are between 18 and 24 years old. 50% make up users who are between 25 and 34 years old.
6. What is Venmo’s average transaction amount?
The average transaction amount on Venmo in the United States is between $65 and $75. Venmo’s average transaction amount is less than Zelle’s. One of the reasons is that most of the time, peers use Venmo to transfer smaller amounts of money. On the other hand, Zelle users use the app for bank transfers.
7. An average user performs how many Venmo transactions a month?
Users average about five transactions every month.
8. How many US merchants allow customers to use Venmo?
According to the latest Venmo stats, more than two million merchants accept Venmo.
9. How much revenue does Venmo contribute to PayPal?
Venmo accounts for 16% of PayPal’s total revenue.
Conclusion
Venmo is popular among young adults and students who use mobile payments. PayPal acquired Venmo when the company bought Braintree in 2013. Venmo has two major competitors, which are Cash App and Zelle.
Additionally, in the global crypto wallet, Venmo competes with Coinbase and PayPal.
Venmo statistics show that the company is doing relatively well. The company is expected to grow its revenue in the next decade due to its social spying feature, which the Paypal CEO described as a ‘secret sauce.’
Venmo user demographics show that Venmo is popular among people between 18 and 29 years old. Moreover, Venmo’s market share is expected to grow in the next few years.
Paul Martinez is the founder of EcomSidekick.com. He is an expert in the areas of finance, real estate, eCommerce, traffic and conversion.
Join him on EcomSidekick.com to learn how to improve your financial life and excel in these areas. Before starting this media site, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.