Venmo aims to be more than just an app for paying friends with the latest updates.
On Wednesday, PayPal-owned payment platform debuted several new debit card perks, expanding its ability to pay with retailers such as Tiktok Shop and Uber. Updates Signal Venmo is likely to become a full-service fintech service, not just a peer-to-peer payment app.
First introduced in 2018, the Revamped Venmo debit card now has tap-to-pay features. Additionally, cardholders earned 15% cashback at Lyft, McDonald's, Sephora, Walgreens and Walmart.
Venmo also lets cardholders deploy the option to start automatic transfers, schedule transfers, and set specific balance thresholds that automatically trigger reloads when balance falls below a certain level. Users can also make international purchases without the foreign transaction fees, a notable perk for frequent travelers.
For all shoppers, Venmo is now able to pay for users through brands such as Domino's, Instacart, Tiktok Shop, and Uber.
These updates fell below expectations as Cash App's first quarter shortfall revealed its parent company Block revealed that consumers were using fewer apps than expected.
In contrast, Venmo reported a 20% increase in revenue compared to the previous year. Payment usage on Venmo jumped, with total payments exceeding 50% and monthly active accounts increased by 30%.
Although Venmo is successful, Zelle continues to maintain a significant portion of the US peer-to-peer payments market, achieving over $1 trillion in 2024.