Is Venmo Owned by PayPal In 2022? (Full Guide)

ByCharles Scott Last Update on

Inside PayPal‘s Acquisition of Venmo

PayPal acquired peer-to-peer payments app Venmo as part of its 2013 purchase of Braintree for $800 million. The rationale was gaining traction with millennial and Gen Z consumers amid rapid industry growth while also owning more of the payments value chain.

In 2024, Venmo operates as a PayPal service, retaining its own app and social features while gaining functionality.

The Peer-to-Peer Payments Explosion

PayPal bought Venmo in 2013 as peer-to-peer transactions were exploding:

  • Venmo payment volume grew by 394% in 2012 in an early sign of huge demand for quick money transfers.
  • Competing services like Square Cash also witnessed triple-digit user growth signaling a lasting change in consumer financial habits.
YearVenmo UsersPayment Volume
201815 million$62 billion
2022 (est)90+ million$286 billion

The above statistics showcase the exponential adoption of P2P payments across younger demographics. PayPal was wise in acting decisively to own a rising brand in the space.

Expanding Venmo‘s Capabilities Under PayPal

While retaining beloved social features for friends, PayPal set expanding Venmo’s capabilities early on:

  • Users gained ability to pay approved merchants online in 2018.
  • Venmo credit card launched in 2020, opening rewards and financing options.

These additions make Venmo more of a daily spending and financial management app on top of P2P money transfers.

Features allowing small business sales and money transfers also overlap with parts of PayPal‘s offering. It‘s clear PayPal seeks to make Venmo a versatile app tailored to younger consumers‘ financial lives.

Owning More of the Payments Journey

Venmo propelled PayPal to own more share across personal payments, a gap in its capabilities. Meanwhile, PayPal’s infrastructure supports expanding what Venmo offers users directly within its social app experience.

Early signs suggest acquiring Venmo creates strategic synergies for PayPal and added appeal for Venmo users – the best of both worlds. Both constituents benefit from shared resources under joint ownership.

The runaway early success of P2P payments drew PayPal to Venmo. And Venmo’s popularity with younger demographics created strategic expansion opportunities for PayPal in the long run.

Charles Scott is a dynamic professional whose academic and career achievements demonstrate a strong commitment to excellence in the retail and consumer service industry. Graduating with an MBA from New York University in 2013, Charles has built a diverse and impressive career portfolio. He has held significant roles as a manager, advisor, and marketer, showcasing his multifaceted skills and deep understanding of the industry.

Beyond his direct professional engagements, Charles has made a notable mark as the head writer and founder of ExpertBeacon.com. This platform stands as a testament to his dedication to consumer empowerment and education. ExpertBeacon.com is a resource designed to assist consumers in addressing their persistent questions about products, services, and companies. Under Charles's leadership, the site provides in-depth, well-researched, and accurate information, all structured in easy-to-follow guides and articles. His work here not only highlights his expertise in the field but also his commitment to providing valuable, actionable information to the public.

Charles's approach is centered on a keen understanding of consumer needs and market dynamics, making him a respected voice in the industry. His contributions through ExpertBeacon.com and his professional roles reflect a blend of strategic thinking, practical knowledge, and a genuine desire to enhance consumer experiences in the retail and consumer service sectors.

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