![]() We expect the partnership to benefit Venmo in terms of increased payment volumes as customers on Amazon pay with Venmo. Amazon Partnership to Contribute to Venmo Payment Volumes We believe that Venmo could benefit from the partnership with Amazon to allow it as a payment method based on Venmo’s share of digital wallets which is 2.65% and the expectations that the use of digital wallets will increase in the year 2025. Venmo has the 6 th largest % with a share of 2.65%. Based on the table, the digital wallet with the highest number of users is AliPay with a share of 38.24% followed by WeChat Pay with a 23.53% share. We then calculated the share of digital wallets for each company. Source: Telemedia Online, Business of Apps, Statista, Earth Web, Wise, Startup Bonsai, Merchant Machine, The Fintech Times, Remitly, Khaveen Investmentsīased on Telemedia Online, there are 3,400 mln digital wallet users in 2022. Amazon accepts various payment methods such as pre-paid cards, credit cards, debit cards and digital wallets.Īs shown, based on Worldpay, the digital wallet share of online purchases is expected to increase from 49% in 2021 to 53% in 2025 driven by factors such as the growth of e-commerce and the emergence of super-apps. According to Forbes, PayPal is a more versatile platform compared to Venmo as it is used for both P2P payments and business transactions whereas Venmo is more focused on P2P payments.įollowing this announcement with Amazon, we analyzed the share of payment methods online and calculated the share of digital wallets to determine whether Venmo could become a top payment choice on Amazon.Īccording to World Pay, digital wallets are the most common payment method for e-commerce purchases in 2021. As shown in the table above, PayPal has 426 mln users globally and 197 mln users in the US. ![]() However, PayPal is better in terms of availability as it is available in more than 200 countries whereas the usage of Venmo is only limited in the US. As shown, Venmo has an advantage in terms of transaction fees as it has a base transaction fee of 1.9% whereas PayPal fees are from 1.9% to 3.49% which depends on the PayPal products used. We then compared PayPal and Venmo fees, availability and number of users to determine the competitive advantage of each of them. Source: The Balance Money, PayPal, Statista, Venmo, Amazon, Khaveen Investments Moreover, both Venmo and PayPal are similar, but PayPal has a more complex fee structure with higher fees than Venmo. We understand our customers want options and flexibility in how they make purchases on Amazon, - Ben Volk, Amazon's director of global payment acceptanceĬompared to PayPal, Venmo was more focused on personal transactions (P2P) but has increased its focus on business transactions too. Venmo To be a Popular Payment Choice on AmazonĪccording to Amazon, PayPal and Amazon will enable its 90 mln users with the ability to pay with Venmo on Amazon. ![]() Lastly, we estimated the revenue opportunity for PayPal from the Venmo partnership based on Venmo’s merchant fees. Moreover, we then determined the payment volume opportunity for Venmo based on Amazon’s GMV. On the Amazon ( AMZN) partnership, we analyzed the top digital wallets based on the share of users which we used to estimate the share of payments on Amazon. ![]() ![]() ( NASDAQ: PYPL), we analyzed the company following the announcement of Venmo’s acceptance as a payment method on Amazon. In this analysis of PayPal Holdings, Inc. ![]()
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