Enabling Technologies

Breaking News: Venmo Launches Alternative Payment System for Merchants With In-App

MEDICIFounder and Chief Strategy & Innovation Officer

What happens when you add two incredible things that go well together and prepare a new recipe? It results in epicness, such as Salted Caramel Mocha. So when Venmo (with its popularity with millennials) and Paypal/Braintree (with lots of merchant relationships) are put together, the result has to be awesome.

It's a product line expansion that was truly overdue. Venmo was bought by Braintree which, in turn, was bought by Paypal; and to me, just the kind of talent they have amassed is incredible. So with this update, Venmo expands from being a P2P payments product to an in-app purchases product. The company today announced partnerships with sports ticket app Gametime and food delivery app Munchery—both will now use payment info stored in Venmo to let users buy tickets or order meals.

The first thing that strikes me and several others is that Venmo has made it a limited rollout. Why?

Their website says, "We've emailed everyone who can start using Venmo to pay in select apps. Didn't get an email? Right now, we're limiting availability, but stay tuned—we're adding users regularly, and will let you know when you can start paying!"

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Going first with in-app purchases makes a lot of sense given how Apple Pay has performed so far. There is a demand for paying in-app with methods such as these while at the physical retail store people are still not convinced about proximity payments. This makes Venmo a mobile wallet—a graduation from just a P2P offering.

Venmo will compete with Apple Pay and Samsung Pay in many ways. I suspect their merchant base (especially apps/online) could grow much faster because of Braintree. It's not the first time that a product that is loved by users for P2P payments is getting into commerce enablement. We have seen examples like these elsewhere in the world, such as PayTM in India. What's interesting is that Apple Pay will take a very different path; it will go from commerce transactions to P2P payments soon.

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Like the Paypal button, we could start seeing a "Pay with Venmo" button everywhere. The advantage is that a user who uses the Venmo app won’t have to plug in their credit card info; instead, they will simply sign in and pay with their Venmo wallet.

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Amit Goel

MEDICIFounder and Chief Strategy & Innovation Officer

“Amit Goel is the Founder & Chief Strategy & Innovation Officer for MEDICI. Amit’s vision is to build a strong FinTech market network that involves financial institutions, banks, startups, investors, analysts & other key stakeholders across the ecosystem – helping each one of them in a meaningful way by removing the asymmetry of information and providing a platform to engage & transact.\ \ Amit is passionate about bringing actionable FinTech-focused insights, innovative products & services for the FinTech ecosystem. Some of his work involves startup scores, bank scores/assessments, predictive viewpoints & other innovations that have helped MEDICI’s customers and the ecosystem. He has been named amongst the Top 100 FinTech thought leaders/influencers in the world & Top 10 in Asia multiple times by reputed agencies, consulting firms as well as financial institutions. Amit has built MEDICI (formerly LTP) as a new-age, tech-enabled advisory/research firm, which is now considered the #1 global research & innovation platform for FinTech in the world.\ \ Amit has been writing pioneering viewpoints on financial technology space that have been ahead of the curve since 2010. His data-driven predictions have helped the customers as well as the ecosystem. His past work experience includes a strong background in strategy & market analysis and advisory to clients (from big business houses to Fortune 500 firms) in payments, commerce, financial services & IT/technology. In the past, Amit had also founded a successful consulting & research practice called GrowthPraxis and has worked at Boston Analytics, Frost & Sullivan, and Daimler Chrysler in strategy & research.”