Venmo Reaches Small Business Milestone

Rate this post

Venmo, the payment services provider, has announced that it has grown by 50% and now has nearly 90 million accounts by the second quarter of 2022. According to this milestone, nearly one in 3.5 consumers in the US uses Venmo.

More consumers are choosing to pay with Venmo

One contributor to Venmo’s growth is its merchant payment service, which grew 250% in the second quarter alone. That includes Pay with Venmo and Business Profiles, its small business offering that recently hit a milestone of 1.5 million businesses since its launch just over a year ago.

A study of Venmo customer behavior found that of over a thousand consumers who made an online purchase over a 2-week period, 19% were more likely to complete a purchase with Venmo than traditional payment methods. Additional Venmo customer behavior includes:

  • Venmo users tend to be younger and more affluent, with 67% of customers holding a bachelor’s degree or higher.
  • 89% of consumers prefer to pay with Venmo because they trust the brand, its ease of use and the ability to split transactions with friends.
  • Venmo is the preferred tipping method for Venmo customers after cash and cards when paying for a service. About 93% of Venmo customers have tipped people/in the past 6 months, while 83% perform tipping activity monthly. Individuals in the food, beverage and beauty industries are the most common recipients.
  • In the apparel and fashion industry, Venmo can increase unplanned purchases by up to 34%.
  • From more than 300,000 US consumers and an analysis of more than 3.4 million transactions, Venmo users shop twice as often as the average shopper and are 19% more likely to make repeat purchases.

Venmo and small businesses

In addition to being a peer-to-peer payment system, Venmo also offers some advantages for small businesses as a payment method. Businesses that already accept PayPal can accept Venmo payments at no additional charge.

The mobile banking app that gained popularity for making it easy to split a check with a friend or even pay your roommate back for your rent has more to offer small businesses. This includes fast processing and transaction security.

With the Venmo Business Profile, users can accept payments for selling goods and services from customers on Venmo. Business profiles are created for individuals or sole proprietors and registered businesses. They allow Venmo users to create a separate Venmo profile linked to their account to accept payments for goods and services.

In 2021, Venmo processed $230 billion in total payment volume, up 44% year over year. Venmo users average five transactions per month averaging $60. Business profiles are designed with your business needs in mind. By creating a business profile, you’ll gain access to specialized features such as enhanced payments and more.

Some of the benefits of creating a Venmo business profile include increased visibility of your business in the Venmo feed and contactless payment options. It also offers an in-app photo gallery to feature products and services, the ability to refund customers directly from within the Venmo app, and the ability to enable tipping on payments your business receives.

For the latest news, follow us on Google News.

Image: Depositphotos

Source link

Leave a Comment