Venmo’s Real Threat to Banking: Making Payments Fun

History may show that Venmo, part payment app, part social media channel, did more to 'un-bank' consumer payments than any other factor. The mobile P2P app now has stiff competition from bank-owned Zelle and others, but continues to grow rapidly. The reasons why are not all unique, but taken together make it a potent competitor.

Of all the things changed by the pandemic, consumer payment habits was one of the largest. In response to the pandemic, more than eight in ten consumers (86%) say their payment habits have changed, a Paysafe survey found. According to the Atlanta Federal Reserve, 62% of consumers adopted at least one new payment app such as PayPal, Venmo, or Zelle in 2020, up from 54% in 2019.

In the first quarter of 2021, Venmo’s total payment volume grew by 60% year-on-year to $51 billion, according to Statista.

Venmo essentially has five things going for it. They’re not all exclusive to the app, but together they explain its continued growth, even in the face of tougher competition. 

1. Venmo Rides the Wave of Mobile Payments According to the Atlanta Fed, non-bank online payment account adoption increased from 54% in 2019 to 62% in 2020. The biggest winners in the consumer adoption wars were Continue Reading