Reportedly, Venmo is getting nearer than ever to be a money-maker for PayPal, its parent company. The peer-to-peer payment application notched a record in the fourth quarter, with progress in important measures counting the number of users using Venmo to purchase something, rather than just sending money to companions. The company reported $19 Billion in payment volume via Venmo in the fourth quarter—an 80% growth year over year—Dan Schulman, PayPal’s CEO said. For the full year, Venmo routed $62 Billion in payments, which is a 79% increase from previous year. And the firm is on track to attain $100 Billion by 2019.
Schulman said, “We do not need to get again too ahead of ourselves, but we are quite pleased with what we are seeing with Venmo, it is really moving from strength to strength.” The application has yearly revenue of over $200 Million, Schulman stated. But that is not sufficient for Venmo to make money. The organization has not given an accurate target date for productivity, but the company’s CFO asserted it would not happen right away. John Rainey—PayPal’s CFO—stated, “The upcoming phase for us is to get Venmo to balance, which is not something that is going to occur in the upcoming quarter or two, but there is a vision to that with what we are proceeding.”
Recently, PayPal was in news for offering up to $500 credit for the U.S. federal employees that are affected by the shutdown. The online payment company said it would offer $25 Million in interest-free credit to its customers who are employed with the U.S. federal administration and are affected by the closedown. Employees who use “PayPal Credit” would be able to benefit up to $500 each as an advance, without having to shell out any interest, and the plan will last till the administration reopens, the company said on its website.