PayPal's Venmo To Start Monetizing Product, Service Transactions: WSJ
- PayPal Holdings Inc’s (NASDAQ: PYPL) payment app Venmo will soon allow users to sell products and services on their accounts for a fee effective July 20, the Wall Street Journal reports as the company disclosed.
- Previously users were prohibited from receiving money for business transactions through personal Venmo profiles, the violation of which leading to possible account suspension.
- Customers with business profiles will be liable to a 1.9% plus a 10-cent fee.
- It launched the first Venmo-branded physical credit card in 2020, focusing on the QR code on the front of the card and a flexible cash-back rewards program.
- Venmo gained more users during the pandemic by directly depositing stimulus checks into Venmo accounts.
- Venmo’s user base rose 32% in 2020 to nearly 70 million active accounts. About $51 billion was transferred via Venmo in Q1, growing 63% year-on-year. PayPal expects Venmo to generate almost $900 million in 2021 revenue.
- Venmo will add a toggle to its user interface that will allow customers to indicate if the money they are sending is for a good or service. Those transactions will be eligible for the app’s purchase protection plan to dispute charges for purchases that did not arrive or were not as expected.
- The transaction fee will get deducted from the amount sent.
- Price action: PYPL shares closed lower by 0.48% at $291 in the premarket session on the last check Monday.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted-In: Briefs Wall Street JournalNews Tech Media Best of Benzinga
