Venmo, the payment services provider has announced that it has grown by 50% and now has nearly 90 million accounts in the second quarter of 2022. According to this milestone, nearly one in every 3.5 consumers in the U.S. use Venmo.
More Consumer Opt to Pay with Venmo
One of the contributors to Venmo’s growth is its commerce payment service which grew by a whopping 250% in the second quarter alone. This includes Pay with Venmo and Business Profiles, its small business offering that recently reached a milestone of 1.5 million businesses since launching just over a year ago.
A study on Venmo customer behavior found that out of more than one thousand consumers who made an online purchase over 2 weeks, 19% were more likely to complete a purchase with Venmo over traditional payment methods. Additional Venmo customer behavior includes:
- Venmo users skew towards being younger and more affluent with 67% of customers having a bachelor’s or higher degree.
- Some 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 most preferred tipping method for Venmo customers after cash and cards when paying for a service. Some 93% of Venmo customers have tipped individuals /in the past 6 months, while 83% engage in a tipping activity monthly. Individuals in the food, drink, and beauty industries are the most common recipients.
- In the clothing and fashion industry, Venmo can increase unplanned purchases by as much as 34%.
- Out of more than 300 thousand U.S. consumers and an analysis of more than 3.4 million transactions, Venmo users shop over two times more frequently than the average shopper and 19% more likely to make repeat purchases.
Venmo and Small Businesses
Besides being a peer-to-peer payment system Venmo offers some perks for small businesses as a payment method too. Businesses that already accept PayPal can accept Venmo payments without any additional charge.
The mobile banking app which gained popularity for making it easy to split a check with a friend or even pay back your roommate for your share of the rent has more to offer for small businesses. This includes speedy processing and transaction security.
With Venmo’s Business profile users can accept payments for the sale of goods and services from customers on Venmo. Business profiles are built 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 by 44% year-on-year. Venmo users average five transactions a month with average transactions amounting to $60. Business profiles?are designed with your business needs in mind. By creating a business profile, you’ll gain access to specialized features like enhanced payments and more.
Some benefits of creating a Venmo business profile include increased visibility for your business in the Venmo feed and touch-free payment options. It also offers an in-app photo gallery to feature products and services, the ability to refund customers directly from the Venmo app, and the ability to enable tipping on payments your business receives.
This article, “Venmo Reaches Small Business Milestone” was first published on Small Business Trends