How Venmo Makes Money

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Venmo has revolutionized the way pay each other back. From sending roommates the rent check to reimbursing friends for dinner, people ‘Venmo’ each other all the time. But have you ever wondered how this fun, emoji laden payments app actually makes money? Well, for years, it hasn’t. But now Venmo is on the cusp of profitability for its parent company, Paypal.

Concerns remain about privacy for users and security for their money. And many on Wall Street are still waiting to see whether this millennial digital payments phenomenon is just flash in the pan or if it’s really here to stay. Bill Ready, Paypal's COO and the man who brought the once no name app to mainstream fame invited CNBC to Venmo's New York offices to get a look inside how the payment app works.

NOTE: On April 24, 2019 (a day after this video was published), PayPal revealed for the first time that Venmo has 40 million users. In the video above, CNBC cited eMarketer, which had estimated 27.4 million Venmo users as of April 2018..

In its first-quarter 2019 earnings report, PayPal said it now has a total 277 million total customer accounts — including 22 million merchant accounts. Total payments volume for Venmo grew 73 percent year over year to $21 billion in the first quarter, the company said. The company said Venmo is still on pace to do $100 billion in payment volume this year.

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How Venmo Makes Money

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Gaining more financial independence is probably the result of knowing how to handle personal finances and invest. People are better equipped to save, spend, and invest their money when they have a solid understanding of money and investment. In this market impacted by the recession, a trader made over $350, 000.

EvaHoffmann

A very VERY VERY well put together video. Describing the business, history, competition, scandals. This is like a very well written essay. Props to CNBC. I look forward to more videos. Some ideas would be shining light on some start-ups or rising ones if there isn't a large of enough background.

kevind

wow his name is BILL READY.. how ironic !!

GangstaInLaw

Let me summarize this 11:29 video.

How Venmo Makes Money? It doesn't.

brennany

Didn't think much of CNBC back then, as with other cable new networks. But seems they are smart enough to know what media outlet gets people's attention these days. I love these quality videos

tiredsleep

You keep saying "millennials" like we're not all almost 40 years old, struggling to survive, and think this is stupid. The generation you're trying to describe is apparently Gen Z.

JRKonungrinn

Its crazy that how PayPal will probably buy every upcoming money transfer company that seems promising.

alexanderslobas

Video: “not insured”
Me stops video and transfers funds

santacruzDiego

So "millennial" pretty much = " young people" now... Just say "young people"!

LetoDK

Oh boy it's owned by PayPal... Get ready for payment holds, fraud, and abysmal customer service.

this_time_imperfect

These people talk about Venmo as a social network like I'm actually scrolling through the feed liking people's transactions or even reading them in the first place.

aidanmulligan

LOL at how they speak about these "millenials"

ChrisBoulas

I agree with Dan, it’s scary how so many people make it obvious who they pay and how much they pay. When I used it, I would make my transactions private so nobody else could this on the ui

giovannitrejo

I prefer Cash App myself but have pretty much all the money transfer apps. Makes it easier when someone needs to pay me and they only have one of these and I have an account with all available money transfer apps.

TruFinancials