What Is Driving the Growth of Digital Wallet Venmo?

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Venmo’s popularity continues to soar. There are now 68.3 million active users in the United States – an 8.8% increase from the previous year. This rapid growth has been driven primarily by millennials, who favor Venmo’s free peer-to-peer transaction services. According to data compiled by Emarketer, 57% of Americans using digital wallets have downloaded Venmo while 49% in the 30-39 category are also active users.

Venmo’s strong niche lies in online transactions rather than in-person payments. As of Q2 2024, 37% of users reported using Venmo for online shopping, a notable rise from just 14% in 2018. It has distinguished itself in the market through the ease with which users can send or receive payments for free. With users projected to reach 80.2 million by 2027, Venmo’s influence in the digital payment space shows no signs of slowing down.

What Is Venmo and What Makes It Stand Out?

Venmo is a popular peer-to-peer (P2P) payment app available for iPhone and Android devices, designed to simplify money transfers between users. Its strength lies in its convenience, affordability, and user-friendly features. The app’s intuitive interface includes tools like an on-screen calculator for splitting expenses and the ability to request payments from multiple people simultaneously, simplifying group transactions. 

Venmo also boasts low fees: sending money from a bank account, debit card, or Venmo balance is free, with only a standard 3% fee for credit card payments. Users can also enjoy speedy transfers, with funds typically reaching their bank within one to three business days or even faster through optional instant transfers. Beyond personal transactions, Venmo integrates with select businesses for seamless payments and even allows users to buy popular cryptocurrencies like Bitcoin with educational resources available for beginners.

Acceptance at a Growing Number of Retailers

Venmo can be used to pay a growing number of participating merchants at no additional cost, making it a versatile option for personal and retail transactions. The number of popular brands accepting Venmo continues to expand, complementing its popularity.

For example, Abercrombie & Fitch, Foot Locker, Uber Eats and Urban Outfitters as well as Boxed, CVS, Forever 21, and Grubhub amongst others will accept Venmo payments directly. More recently, Adidas and Amazon announced they will accept the app for payments, while, in gaming, for example, it can be used in the Xbox store. 

Similarly, top iGaming platforms like Jackpot City and Fanduel Casino have added it to their roster of payment options. For fans of casino games, it means having the ability to use the real money bonuses these platforms offer with the ease and flexibility of Venmo. Bonusfinder has listed all the information online about which platforms accept Venmo.

Other benefits include the app’s social features that add fun options when transferring money between friends. Users can also link their Venmo account to a credit card, debit card, or checking account, and they have the option to use Venmo-branded debit and credit cards for purchases.

Growth Set to Continue

Venmo’s convenience, low fees, and expanding merchant partnerships continue to drive its popularity and growth. With projections of over 80 million users by 2027, it remains a dominant force in the digital payment landscape, seamlessly connecting people and businesses through its user-friendly and socially engaging platform.