Venmo assigned a dedicated leader
PayPal (PYPL) is giving its Venmo business a lot of attention lately. After years of appointing Venmo leaders who have also handled responsibilities for the flagship PayPal service, PayPal has recently changed that by assigning Venmo a dedicated leader, signaling the growing importance of the Venmo business.
In August, PayPal appointed Amit Jhawar as the general manager of Venmo. Jhawar was previously the head of operations at PayPal’s Braintree unit. In an interview with the Wall Street Journal last month, COO Bill Ready said that Jhawar would focus solely on running Venmo—unlike in the past, when Venmo chiefs were also required to handle other tasks outside the business.
PayPal issues Venmo debit card
Venmo is an app that lets people transfer money to one another, meaning that it’s a peer-to-peer payment service like Zelle, Square, Cash App, or Apple Pay Cash. Venmo also lets people pay for purchases in places where the flagship PayPal service is accepted. More than 2.0 million merchants, including Uber and GrubHub (GRUB), allow customers to pay with Venmo. GrubHub is an online food delivery company.
Venmo users can also withdraw their funds from an ATM using a Venmo-branded debit card that PayPal has created in collaboration with MasterCard (MA). Square (SQ) has teamed up with Visa (V) to create the branded Square Cash App debit card.
Venmo’s volumes jumped 78%
PayPal has given Venmo a dedicated leader at a time when it has stepped up its efforts to monetize the app. Venmo processed $14 billion in payment volumes in the second quarter, representing an increase of 78% from a year earlier. PayPal makes money from Venmo by charging merchants a fee to process Venmo payments.