Almost overnight Venmo has become one of the most popular ways for transfering money between friends and contacts, but the eBay-owned app may soon offer a way to buy goods and services as well. A new report from Bank Innovation claims the company plans to launch a new “Pay With Venmo” service, citing multiple inside sources.
The new feature would let you pay with your phone using money already stored on the app. Venmo lets you connect a bank account, but you can also use it to hold onto money transferred to you from friends. PayPal already offers a similar service of its own, which lets you pay from your phone at some stores, restaurants and even taxis.
With PayPal already offering a similar service it’s a bit strange to see Venmo moving into similar territory. The smaller startup is owned by Braintree, which was recently bought by eBay, which also owns PayPal. So why are the two payment services competing? The truth is they’re not. Instead, Venmo is going after a younger generation that might not be interested in PayPal. The two services may be run independently from one another, but it’s no surprise to see one borrow ideas from the other.