Paypal Holdings Inc (NASDAQ:PYPL) CEO Dan Schulman revealed that Venmo has become very popular with the millennial generation who view it as a better alternative for making payments, He, however, stated that most millennials are not aware that Paypal owns Venmo.
The CEO pointed out that PayPal acquired Venmo as part of Braintree. The app has gained a lot of popularity with the younger generation, and it has been experiencing rapid growth which has catapulted it as one of the company’ best-performing divisions. Venmo is a mobile app that facilitates peer to peer payments just like PayPal’s main service. The app has been widely and rapidly adopted. It registered a whopping $7.5 billion in transactions in 2015 and earlier this year in January it made its first billion.
During the Brainstorm Tech conference held by Fortune on Wednesday, Schulman acknowledged that millennials might not be aware of the relationship between Venmo and PayPal. The CEO stated that a student approached him after his speech at the New York University and told him that Venmo is better than PayPal. The student did not know that the two payment services exist under one firm. The CEO stated that the biggest success driver behind the relatively new mobile payment app is the focus on transforming every transaction into an experience. He also pointed out that Venmo was the third most popular mobile app in the US in 2015 based on the number of downloads.
PayPal recently started generating profit from Venmo by granting merchants the ability to use the app as a payment option. This means that the app can now be used to settle bills in businesses such as Gametime and the food delivery service known as Munchery among others. The CEO also stated that the company is trying its best to monetize the app in a thoughtful manner. The app is also a good competitive tool for the company especially now that the mobile payment industry is taking root.