3 ms·
Is it just me or is the number kinda low, based on Venmo's success so far (and the financial predictions)?
by tzaman 14y ago
Is it just me or is the number kinda low, based on Venmo's success so far (and the financial predictions)?
- SatvikBeri 14y agoThere have been several "pay-your-friends" apps that achieve a lot of success for a while because they're free, then lose all momentum when they start charging. I'm not sure if Venmo is in the same boat, but it seems possible.
- drumdance 14y agoI remember waaaaay back in the day when PayPal was called Confinity and they were doing this for PalmPilot. They pivoted and the rest is history.
- habosa 14y agoVenmo hasn't been very successful thus far. They have a small to mid sized user base and they are currently operating at a loss (no fees on transactions that cost them money), so I think $26m is a pretty good number.
- stephenlambe 14y agoThey're only processing $10M of transactions/month, so even if they were to start charging fees, that wouldn't translate into much revenue. Agree that this is a great exit for the team.
- pbreit 14y agoSeems high to me. Minimal traction in a difficult-to-make-money niche (paying people you know).
- jcampbell1 14y agoTheir pricing is 3% on credit cards, and 0 on everything else. At best they would see 1% margin on credit cards, so $250M at 1%, is $2.5M/year. 10X optimistic projected revenue is a great deal for Venmo, and BrainTree is getting a functioning custodial account system and the team that built it.
- jusben1369 14y agoThe number is a reflection of 3 things: - Multiple of revenues - Tech acquired vs time to build and opportunity cost. - Braintree's perception of how much they can aggressively grow the offering when they offer it to their much larger customer base So it is what it is.