GrubHub has also adopted Venmo payment
PayPal (PYPL) recently struck a deal to make Venmo a payment option for Uber riders. The deal expands merchant adoption of Venmo payment and may help PayPal in its competition with Square (SQ) and banks in the mobile payments market.
In its last update on Venmo adoption, PayPal said more than 2.0 million merchants had added the Venmo payment option. Food delivery company GrubHub (GRUB) was among the early adopters of Venmo payment. Last year, GrubHub acquired Yelp’s (YELP) online food delivery service, Eat24, for nearly $290 million to expand its delivery business.
Uber offers path to bring Venmo to more diners
In addition to its core ride-hailing business, Uber also runs a food delivery service called UberEats. So the partnership with Uber offers PayPal a bigger opportunity to drive Venmo adoption.
PayPal’s Venmo launched as a service that allowed users to transfer funds to friends and family. It was only last year that PayPal began offering the Venmo payment option that allows people to pay for online purchases with their Venmo balances.
Bank of America processed 29 million Zelle transactions
Venmo is competing for customers with Square’s Cash App, Apple’s Apple Pay, and Zelle, a mobile payment service backed by several large banks including Bank of America (BAC). Square’s Cash App has attracted more than 7.0 million active users. Bank of America said in April that it processed 29 million Zelle transactions worth $9.0 billion combined in the first quarter.
PayPal processed transactions worth $12 billion through Venmo in the first quarter.