Venmo rainbow-color variant added
It’s been a tit-for-tat scenario for PayPal (PYPL) and Square (SQ) in the mobile peer-to-peer payment market. In an apparent attempt to set its Venmo peer-to-peer service apart and entice more people to take up the service rather than Square’s Cash Card, PayPal recently expanded the color selection of its Venmo card. The Venmo card, which debuted with six color options, is now available in a limited-edition rainbow variant.
Venmo’s monetizable base expanding
PayPal and Square make money when people use the debit cards linked to their peer-to-peer payment services to pay for purchases. PayPal is still in the early stages of monetizing Venmo, but is making progress. The company disclosed last month that Venmo’s monetizable base reached 29% in the fourth quarter, up from 24% in the previous quarter. However, it doesn’t disclose how many people use Venmo. Square recently said that its Cash App more than doubled its user base year-over-year at the end of last year, to 15 million from 7.0 million.
Competition in the peer-to-peer payment market is heating up as companies look to cash in on the growing demand for convenient payment solutions. In 2017, Google (GOOGL) launched a mobile payment service in India called Tez, and Facebook (FB) is conducting trials of a mobile payment service tied to its WhatsApp chat platform in India. America’s big banks, led by JPMorgan Chase (JPM) and Bank of America (BAC), are rallying behind Zelle, a mobile payment service.