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Question: does anyone know how/if Venmo makes money or is it just a loss-leader for Braintree/PayPal? I use it for thousands of dollars of transactions a year
by habosa 11y ago
Question: does anyone know how/if Venmo makes money or is it just a loss-leader for Braintree/PayPal?
I use it for thousands of dollars of transactions a year but I have never paid a penny in fees or seen an ad. People claim that Venmo acts as a bank and invests my carried balance but I can't imagine that's lucrative enough to pay all the bills.
- stevesearer 11y agoThey also charge a 3% fee on money sent using a credit card. Many of my friends just have a balance sitting in their Venmo account because they use it so often to pay for things from rent to groceries to splitting a bill at a restaurant. No idea of the metrics of how much can be made from the interest on those balances though.
- ennuihenry 11y agoThey don't make the 3%, probably like a 1% spread after interchange fees. But they have a huge team, lots of software developers. So they most likely don't make a profit.
- b1naryth1ef 11y agoThey don't.
- ahstilde 11y agoVenmo, I believe, invests the money it holds. This is why it takes 3 days to cash out.
- habosa 11y agoI tend to get cashouts in 24h now.
- sushid 11y agoI believe they had a series of ads on NYC subway stations a year or two ago. Not sure if they've done anything since.
- sushid 11y agoI believe they had a series of ads on NYC subway stations a year or two ago. Not sure if they've done anything since.