Venmo has gained significant popularity over the past year. By simply loading the app onto a smartphone, a user can connect to bank and credit-card accounts and link up with friends to send money on the go. It makes scenarios like splitting restaurant checks and paying rent quite seamless. The rising use of peer-to-peer applications is improving the prospects for apps like Venmo. The growth of Venmo can be attributed to PayPal which owns Venmo.
The popularity of Venmo is evident in the following chart:
The Venmo app has a social media component which makes the act of splitting bills quite fun. With Venmo, there’s no waiting around for checks to clear or the need to rush off to an ATM for cash. The Venmo app can be easily linked to your bank account and can be synced seamlessly with your existing network of friends from social platforms like Facebook. The app maintains a certain balance in the digital wallet which can be cashed out to a bank account anytime.
Venmo also doubles up as a social network. Every time you perform a transaction, a summary field has to be filled out. The summary, hiding the amount details, can then be shared among a network of friends, if user wants to do so. There are dedicated settings to keep the transactions private. Venmo’s mash-up of personal finance and social media is quite appealing to the millennial generation.
According to Forrester Research, mobile payments by U.S. citizens would reach $90 billion by 2017. Startups, banks, credit card companies and tech giants are battling it out to make a mark in mobile payments. As per AngelList, there are 1,475 digital payments related startups. Companies, that can lure the most customers and merchants, can reap billions of dollars and moreover, gain valuable data about purchase habits. This has led to companies like Apple launching Apple Pay, Snapchat launching Snapcash and Facebook foraying into the space as well.