$17 billion processed in three months
Venmo is one of PayPal’s (PYPL) most closely watched businesses. As PayPal gears up to report its fourth-quarter earnings results, Venmo is sure to draw a lot of investor attention. In the third quarter, Venmo handled transactions worth $17 billion in total, representing an increase of 78% from the same period a year earlier.
Recently, PayPal has stepped up its efforts to get businesses to adopt Venmo as a checkout option in addition to its flagship namesake service.
Venmo merchant adoption
A year ago, PayPal said that more than 2.0 million merchants across the United States had adopted Venmo as a payment option. This number has been growing, as we can see from the recent endorsements of the service. In July, PayPal announced that Uber had added Venmo as a payment option for both its ride and food delivery services. On December 6, online video provider Hulu announced that it was adding Venmo as a payment option, initially for new customers.
Venmo for paying rides and video services
The adoption of Venmo by Uber suggests that the service could also appeal to Alphabet’s (GOOGL) Waymo, which recently began offering ride-hailing services in self-driving vehicles.
Hulu’s adoption of Venmo also suggests that the service could appeal to other online video providers such as Netflix (NFLX), Dish Network (DISH), and AT&T (T). Netflix serves more than 130 million paying subscribers globally. Dish and AT&T exited the third quarter with 2.4 million and 1.9 million subscribers, respectively, on their SlingTV and DIRECTV NOW video services.