Venmo revenue grows 20%, with debit card payment volume soaring

Venmo, long a centerpiece of PayPal 's growth story but often criticized for its lack of monetization, is becoming a bigger contributor to the business. PayPal said Tuesday in its first-quarter earnings release that revenue at Venmo increased 20% year-over-year in the first quarter, though the company didn't provide a dollar figure. PayPal acquired Venmo in 2013 through the acquisition of parent company Braintree. While it's long been a popular consumer service for sending money to friends, Venmo's ability to drive meaningful revenue has been a major question mark for investors, especially as competition from rivals like Zelle and Square Cash has intensified. Venmo's total payment volume rose 10% from a year earlier, but revenue grew twice as fast, reflecting the business opportunity. Venmo only gets revenue from specific products like Pay with Venmo at online checkout, Venmo debit cards, and instant transfers, but not from peer-to-peer payments. ... Read full article.