Venmo is a subsidiary of PayPal because they are the two giants of digital money transfer platforms. They are so popular that users have taken the two proper nouns and converted them into verbs; examples of this are the phrases: “PayPal me.” and “Venmo me.”
PayPal was founded in 1998 and today has a user base of over 200 countries. It is a platform for people to easily send money to one another using email as well as make payments on eBay. In 2012, PayPal acquired Venmo, a subsidiary of the company. Venmo operates autonomously from PayPal, meaning that each product has its own target audience and rules that govern the transactions that users can make. ..
What is PayPal?
PayPal is a publically traded company that allows businesses to easily get paid and also pay back customers in the event of a return. It is a globally recognized brand with 392 million users, it is available on Android, IOS, and online using a PC or laptop.
What is venom?
This mobile platform with features almost identical to those of PayPal is more of a person-to-person money transfer tool. Venmo focuses more on mobile users, via the mobile Venmo app. This app allows friends to easily send money to one another with barely any hassle. Like PayPal, it does have fees attached to some of the transactions that users make using the app. What makes Venmo unique is that it is also a social platform of sorts. Venmo to date has 65 million users, it aims to make sending money quick and also social.
Why PayPal bought Venmo-
PayPal has bought Venmo, a mobile app that allows users to pay for goods and services with money they already have. The app was created by PayPal and its subsidiary, Square, in order to reach a younger demographic. By monetizing Venmo, PayPal hopes to make it more accessible and popular among merchants.
However, this acquisition did not come without any negatives. Some investors are concerned that the growth that Venmo will experience in the market may take away from the success that PayPal is and has been enjoying for several years now. To an extent, this good news in the long run as Venmo’s manner of operating has fewer expenses attached to it even when customers make transactions from their venom account into a bank account.
Venmo & PayPal features
Venmo is a payment app that allows you to send a reminder to someone for them to pay you. PayPal is a payment app that allows you to send money. Both apps have features that allow users to transfer money from their respective app balances into a linked bank account, as well as free payments from bank accounts. The key difference between the two apps is that Venmo allows free payment from debit cards while PayPal only allows free payments from bank accounts.
Engagement-
Venmo users are more engaged with the app than PayPal users, this is seen in the high number of transactions made using Venmo every week. Most of those payments are made in small amounts to friends. PayPal on the other hand has seen its users make one payment every 10-11 days. These PayPal payments are normally going to merchants. What this key difference in transactions means is that users are more likely to leave a balance in their Venmo app because they will be using it again soon
Venmo is a digital payment system that has been growing in popularity over the past few years. While it has had some negative effects on PayPal’s profits, it may still be a good investment for the company.
PayPal is in a difficult situation right now, but if you’re patient then it could yet turn around and pay off in the long term.
If you’re looking to make payments with merchants, PayPal is the go-to option. If you’re with friends or family, Venmo would be a better choice.
If you have a PayPal or Venmo debit card that is linked to your account, you can use it to withdraw money from MoneyPass ATMs free of charge. ..
