Even though PayPal bought Venmo over two years ago, the two apps have remained relatively separate. At the moment, you can’t even directly use your PayPal funds for your Venmo transactions.
That will soon start changing, however. During an earnings call yesterday, the company noted that Venmo users will be able to pay with their accounts anywhere that PayPal is accepted.
Aside from user convenience, it’s an easy way for PayPal to start making money off of Venmo. Most Venmo transactions are free – a charge is only applied if you use a credit card instead of a debit card – but for PayPal businesses, a charge will be applied as well.
It’s a big move that could significantly alter the payment’s landscape. I know very few people who regularly use PayPal to send money, but it seems nearly everyone around me uses Venmo. Adding the ability to pay in stores just seems like a logical step.
➤ Venmo will soon be accepted at all online and mobile PayPal merchants [The Verge]
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