Venmo: A Mobile Payment Service Targeted at Millennials in the US

Venmo: A Mobile Payment Service Targeted at Millennials in the US
Case Code: BSTR577
Case Length: 13 Pages
Period: 2010-2019
Pub Date: 2019
Teaching Note: Available
Price: Rs.400
Organization: Venmo, LLC
Industry: -
Countries: US
Themes: Mobile Payment, Peer-to-Peer payments, Millennial payment, Digital payments, Social Media, Financial Inclusion, P2P payment transfer system, Mobile Payment Service
Venmo: A Mobile Payment Service Targeted at Millennials in the US
Abstract Case Intro 1 Case Intro 2 Excerpts


Innovation Products and Services Aimed at Millennials

Observing the spending habits of millennials and their quick adoption of digital technology (mobile payments) compared to other generations, Venmo launched a variety of products aimed at catering to the needs of the millennials. Secure Transactions In March 2012, with the help of encryption technology, Venmo protected the card and bank data of its users. It also offered coverage to eligible purchases of users under the authorized merchant payment protection plan . The company also offered the Venmo API and Venmo Touch that allowed Venmo app and website users to pay each other from within the app/website. As a part of security, Venmo did not provide overdraft protection to the users unless it was offered by the bank account or card set as a primary funding source on Venmo...

Road Ahead

Venmo faced stiff competition from several fast-growing P2P applications like Zelle, Google Wallet, and Facebook. Of these, Zelle became the biggest competitor for Venmo. Zelle allowed users to send money to other registered Zelle users and access the network within the websites and apps of Zelle-participating financial institutions in the US. Zelle had a tie-up with more than 23 financial institutions (FIs) and had plans to work with payment processors to expand into the broader regional and community financial institution market. In 2018, it also announced the launch of its standalone mobile application – an even more direct way to attract current Venmo users (Refer to Exhibit II for comparison of Venmo and Zelle). As of Q4 2018, Zelle had processed US$ 35 billion in P2P payments in comparison toUS$19 billion for Venmo. That Showed Venmo would face a high level of competition in future...


Exhibit I: Venmo's Competitors
Exhibit II: Comparison of Venmo and Zelle

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