Venmo started as a way to split a dinner bill. Now, the platform is moving further into everyday digital spending, giving users the ability to pay for games, apps, and content on the Google Play Store.
The process is relatively simple. Once their Venmo account is linked to Google Play, users can make purchases via their Venmo balance or linked debit and credit cards.
The move gives Venmo an entry point into consumers’ daily spending habits, while extending its reach beyond peer-to-peer payments. It may also prove particularly relevant among younger consumers, who have helped make Venmo a popular payments platform.
Redesigning for a New Generation
Venmo has been particularly popular with Gen Z consumers, who regularly use the platform to split bills and checks. Like many fintechs, Venmo has used that initial payments relationship to expand into a broad range of financial services, making the platform a challenger to many traditional financial institutions.
The company also plans to deepen its relationship with younger consumers through a significant platform redesign later this year.
The new iteration is expected to offer a more streamlined interface along with social features, such as the ability to see what friends are buying. It will also add quick-response buttons that users can use to thank friends or endorse merchants they frequent.
Establishing Early Touchpoints
For Venmo, the broader strategy is to establish relationships with younger adults early and potentially carry those relationships into other financial services over time. That approach is becoming more common across the financial services sector, as banks and fintechs compete to stay top of mind with younger consumers.
Given that younger generations are digital natives, technology companies are also moving further into financial services. For example, Samsung announced credit card and stablecoin support for its mobile wallet, expanding the range of financial products available through its platform.
Google has taken a similar approach while also targeting the next generation of consumers. A recent Google Wallet update gives parents the ability to establish limited accounts for children under 18.
That feature can give parents another tool for teaching children about money, while also giving Google an opportunity to introduce younger consumers to its financial products and services earlier in their lives.