Consumers Are 19% More Likely to Complete a Purchase with Venmo Over Traditional Payment Methods
In Q2 2022, Venmo grew 50% and now has nearly 90 million accounts in the U.S. This equates to nearly 1 for every 3.5 people in the U.S., drawing Venmo closer to becoming a part of consumers' everyday lives.
One of the contributors to this success is the growth of Venmo’s Commerce offerings – commerce payment volume on Venmo grew >250% in Q2 alone. This includes Pay with Venmo and Business Profiles, our small business offering that recently reached a milestone of 1.5 million businesses since launching just over a year ago.
Research Shows Consumers Are Increasingly Interested in Checking Out with Venmo
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In a study of more than one thousand consumers who made an online purchase over a 2-week period, we found that shoppers are 19% more likely to complete a purchase with Venmo over traditional payment methods. In another study of more than 300 thousand U.S. consumers and an analysis of more than 3.4 million transactions,1 we found that Venmo users shop over 2 times more frequently than the average shopper and are 19% more likely to make repeat purchases. In the clothing and fashion industry, Venmo can increase unplanned purchases by as much as 34%.
The study also found major benefits of using a digital wallet like Venmo or PayPal, showing that it increases shopping frequency and leads to unplanned spending on an average of 35%. Nearly half (46%) of digital wallet users are likely to abandon a purchase and shop at a competitor if they cannot use a digital wallet.
Businesses Small and Large See Higher Conversion with Venmo at Checkout
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Medium and enterprise businesses like Pressed, a quick service restaurant, are seeing near immediate benefits of pay with Venmo. For example, Pressed saw a 57% higher membership average order value on Venmo than with traditional credit cards. After the first week of integration, Pressed experienced a higher average order volume via Venmo than Apple Pay.
Merchants including Caleres, DraftKings, DICK’s Sporting Goods, Booking.com and The Washington Post are also using Venmo at checkout.
Alongside pay with Venmo, entrepreneurs and small businesses are using Venmo Business Profiles to cost-effectively organize, market and grow their business. Modern reused goods business, Olive Ateliers, said "Venmo enabled our business to start selling instantly and without friction, which was a major advantage for moving fast and gaining early customer response. We opened a Business Profile and started receiving payments on the same day. Venmo also offers very business-friendly rates and fee structures, so we are able to reinvest more profits into growing our brand.”
The Continued Rise of Social Commerce
According to a Gen Z survey commissioned by media company Her Campus, 96% of respondents say they have purchased products recommended by a peer via social media. This audience of Millennials and Gen Z is crucial to a business, as they make up more than half of the nation’s total population.
For businesses looking to engage in social commerce and get closer to Millennials and Gen Z, having access to the latest tools like Venmo, whose audience skews towards a younger demographic,2 is particularly valuable. Data shows that 23% of Venmo customers are very or quite likely to consider using a retailer mentioned by a friend on their Venmo social feed.
11) Netfluential and Edison Trends PayPal and Venmo Study: Edison Trends behavioral panel of email receipts from +300K US consumers and +3.4M purchases at a vertical level between Pay with Venmo and Non-Venmo users during a 12-month period (April 2020 to March 2021). Netfluential survey in June & July 2021 of consumers from a 3rd party panel who made an online purchase in the past 2 weeks for 1,010 consumers (half Pay with Venmo and half non-Venmo).
2The Venmo Behavior Study