So, Venmo is stepping up to the plate as a new way to pay on eBay, filling in for American Express after their recent parting of ways. eBay says this switch will make it easier for Gen Z and millennials to shop on their platform.
Did you know that more than 50% of Venmo users are between 25 and 34 years old? This payment platform has really grabbed the attention of younger users, experiencing a significant rise in popularity over the last decade with 18 million additional users jumping aboard between 2020 and 2021.
If you’re a seller on eBay, don’t sweat it – selling stays the same. Venmo will simply be automatically added as a payment option during checkout, aiming to reduce those abandoned carts and, hopefully, boost sales for sellers.
Venmo, a part of PayPal’s family since 2013, is projected to have close to 90 million U.S. users by 2023. It’s widely accepted at over 2 million businesses, but some retailers, like Amazon, have opted out – they’ll halt direct Venmo payments in December 2023, although Venmo is still good to use for credit and debit card payments on Amazon.
Oh, and some government chatter has been stirring too. The U.S. Government has been mulling over whether tech biggies like Apple, Google, and PayPal’s Venmo should face more banking-like regulations for better oversight. This pondering surfaced after a load of complaints about folks struggling to resolve fraud and scams via their smartphones. The tech companies are pushing back, though, saying there’s no real evidence of harm from their products.
According to Forbes, more than half of Americans fancy digital wallets for payments. In a survey, Venmo and Cash App went head to head as the preferred peer-to-peer apps, with Venmo snagging 51% of votes. The speed and convenience of digital wallets, along with rewards and loyalty programs, seem to be the top draws for users shifting away from traditional bank cards. eBay’s study predicts that only a small 4% would pick digital payments purely for quick purchase completion.