Venmo may just be a small part of PayPal’s empire, but the popular payment app already dominates when it comes to passing money virtually between friends. Now Venmo is ready to add online and in-store payments with a little help from its parent company PayPal.
PayPal announced plans to bring Venmo to merchants during its earnings call this week. Soon the app will be accepted anywhere PayPal currently works. In return, the company will collect a fee for these transactions.
That’s a pretty big move, both for Venmo and the people who use it. Being able to pull money directly out of your Venmo account for a purchase will likely make the app even more popular than it already is. For the company, it’s a way to finally start making some real money. Venmo doesn’t charge any transaction fee at all when you send money between friends, but it’s poised to make a killing off Venmo-based shopping.
In its most recent quarter, Venmo handled $2.1 billion in transactions, up from $1.6 billion three months earlier.