Venmo is a mobile payment service that allows users to transfer money to friends and pay for purchases. It has grown rapidly since its founding in 2009, with annual revenue surpassing $200 million and payment volume booming. Venmo makes money through fees for instant transfers between Venmo and bank accounts (1% fee) and processing credit card and Pay with Venmo payments (3% fee). The company's growth has been driven by its popularity among cashless millennials who use it to split bills electronically with friends.
3. Product
- Request or send money to friends, pay
for purchases
- Instantly transfer Venmo balance to
bank account
- View and comment on friends’ activity
4. Persona
- John, the cashless millennial
- Handles all his finances electronically
- Has to split rent, utilities, and grocery
bills with his roommate
5. Financial
- On the verge of making a profit
- Annual revenue > 200 million
- Payment volume is booming
6. Business Model
- Instant Transfer: 1% fee
- Credit Card Payments: 3% fee
- Pay with Venmo: 3% fee
