PayPal's Venmo To Start Monetizing Product, Service Transactions: WSJ

PayPal Holdings Inc’s PYPL payment app Venmo will soon allow users to sell products and services on their accounts for a fee effective July 20, the Wall Street Journal reports as the company disclosed.
Previously users were prohibited from receiving money for business transactions through personal Venmo profiles, the violation of which leading to possible account suspension.
Customers with business profiles will be liable to a 1.9% plus a 10-cent fee.
It launched the first Venmo-branded physical credit card in 2020, focusing on the QR code on the front of the card and a flexible cash-back rewards program.
Venmo gained more users during the pandemic by directly depositing stimulus checks into Venmo accounts.
Venmo’s user base rose 32% in 2020 to nearly 70 million active accounts. About $51 billion was transferred via Venmo in Q1, growing 63% year-on-year. PayPal expects Venmo to generate almost $900 million in 2021 revenue.
Venmo will add a toggle to its user interface that will allow customers to indicate if the money they are sending is for a good or service. Those transactions will be eligible for the app’s purchase protection plan to dispute charges for purchases that did not arrive or were not as expected.
The transaction fee will get deducted from the amount sent.
Price action: PYPL shares closed lower by 0.48% at $291 in the premarket session on the last check Monday.

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