How does Venmo make money? Every detail you need to know
At its core, Venmo is a digital wallet that allows its prospective users to transfer money with each other using its app. How does Venmo make money then?
An absolute answer to the above question is what this article is about to provide. So sit tight while we row it out.
But before we go any further, it is very important that we explain some important things. Things like what Venmo does, sending and receiving money using the app, etc.
What is Venmo?
Venmo is a peer-to-peer payment mobile app that allows users to easily and quickly exchange money directly with each other.
With Venmo, users can pay at select merchants either online using the Pay with Venmo feature or by using the company’s debit card.
Venmo is accepted as a form of payment by approximately 2 million online and physical merchants.
Venmo was founded in 2009, though it started out as a text message-based payment delivery system. It was not what it was now.
In March 2012, the company introduced a platform with an integrated social network in an effort to capitalize on the growing peer-to-peer (P2P) economy.
A few months later, Braintree, the mobile payment system used by Uber, Airbnb, and other famous e-commerce businesses, bought Venmo for $26.2 million.
Soon after, the money-changing app enjoyed a substantial increase in users when PayPal Holdings acquired Braintree.
PayPal Holdings Inc. acquired Braintree for a whopping $800 million. Subsequently, he quickly monetized the Venmo user base. How Does Venmo Make Money?
A brief history of Venmo
Venmo was created by Andrew Kortina and Iqram Magdon-Ismail in 2009. The brand’s headquarters were initially in Philadelphia, but soon after its incorporation, it moved to New York.
In 2001, Kortina and Magdon-Ismail met during a freshman program at their alma mater, the University of Pennsylvania.
They both majored in Computer Science before Kortina later changed her major to Creative Writing and Philosophy. How Does Venmo Make Money?
When the duo became seniors, they started their first company known as “My College Post”.
My College Post was a classified website that was especially targeted at college students. After all, they are both in college.
Throughout their school years, the two high achievers continued to experiment and try various ideas until adult life took center stage.
As a result, Kortina moved to New York and was employed as one of the first female engineers at the URL shortener Company; bit.ly: Founded by networks.
On the other hand, Magdon-Ismail did software work for Ticketleap in Philadelphia.
Some years after the duo’s split, Magdon-Ismail decided to visit Katrina in New York, where she resides.
Unfortunately, Magdon-Ismail left his wallet at home, forcing Kortina to pay all the bills for that weekend.
This small incident, however, sparked the big idea for Vendere Mobile, which was shortened to Venmo, thankfully!
Vendere is a Latin word meaning (“to sell”) and Mobile was shortened to “mo”. That’s how VENMO was born.
Initially, the application was designed to allow its users to send and receive payments via SMS. But of course, the payments were always accompanied by funny messages. how use TikTok