PayPal Launches Venmo for Merchants
Feb. 1, 2016
PayPal’s Venmo peer-to-peer payment solution, an app that has become a favored way for millennials to pay each other, is now being tested as a way to pay in merchant apps on mobile devices. At the moment, Venmo is being accepted by only two merchants: event ticketing application Gametime and gourmet meal delivery service Munchery. To start, Venmo will only be available to iOS users.
Paying merchants using Venmo will retain many of the most popular features of Venmo’s P2P service: the ability to split a bill, view purchase history in one place and share the experience through Venmo’s social component. During its most recent earnings call, PayPal CEO Dan Shulman said Venmo will charge its merchants the same processing fees as PayPal.
“For merchants, accepting Venmo means added value through potentially increased visibility and exposure, especially if the Venmo user splits the purchase or shares the purchase on their social feed,” PayPal said in a post on its corporate blog announcing the pilot. “This is the future of our increasingly digital economy, and we’re excited that the PayPal family is making it a reality.”