Paypal announced that it would begin to monetize Venmo through a new feature named “Pay with Venmo.” Venmo, can now be used for payment at any PayPal merchant. Venmo will make the same fee on transactions as PayPal does.
PayPal is finally breaking Venmo out beyond peer-to-peer payments. During its Q3 earnings call, the company announced an upcoming service called “Pay with Venmo,” which will allow Venmo users to pay at any PayPal merchant. Venmo was once accepted as a form of payment in some mobile apps through its “Touch” technology, which lets users pay with a single tap. That technology has since been folded into PayPal One Touch. The new Pay with Venmo service is more than tap-to-pay functionality — it’s the app’s first major expansion. PayPal’s decision to grow Venmo, build’s on traction the app has gained since it was acquired by Braintree.