5. BUSINESS MODEL
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• Venmo doesn’t charge you if you transact usingVenmo balance
or through debit card or bank account. But, it charges a fee of
3% of the total value of the transaction if you pay using a credit
card or a credit union.
• Merchants that acceptVenmo are charged a 2.9%+ fee (just like
PayPal).
6. PROFITABLE?
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• Sort of!
• Venmo brought in $200 million in 2018
• BUT PayPal’s 2018 revenue was $15.5 billion
• Fraud in early 2018 caused $40 million in loses for Q1
• BUT now they are slowly and consistently bringing in revenue
• “For the full year,Venmo processed $62 billion in payments,
a 79 percent increase from a year earlier. And the company is
on track to reach $100 billion by the end of 2019.”
7.
8. KEY
EXECUTIVES
Andrew Kortina- Co-
Founder
Iqram Magdon-Ismail-
Co-Founder
Ryan Belanger- Head of
Operations
Molly Beck- Head of
Brand Marketing
Esther Jang- Head of
Strategy
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9. HISTORY
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2009
Founded by
Andrew
Kortina and
Iqram
Magdon-
Ismail at
UPenn
2010 Raised
$1.2 million
in seed
money
2012
acquired by
Braintree for
$26.2 million
2013 PayPal
buys
Braintree
2016 some
merchants
accept
Venmo
2018Venmo
card is
launched as a
pseudo debit
card
10. SECRET SAUCE
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• A form of social media
• Convenient
• Money kept in venmo is ‘fake money’
• Helps with forgetting to pay/charge someone
• Little regulation
11. COMPETITION
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Social
Media
Linked to
debit card
Keep money
in the app
Peer to Peer
Transfers
Commercial
purchases
Apple Pay ✖ ✔ ? (Apple
Card)
✔ ? (Apple
Card)
Google
Wallet
✖ ✔ ✖ ✖ ✔
Facebook
Messenger
✔ ✔ ✖ ✔ ✖
Venmo ✔ ✔ ✔ ✔ ✔
12. PREDICTION
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• Failure ): -The newApple Card will take overVenmo in
popularity and convenience
• The social media aspect is not enough to keep them
going e.g. SnapCash
