Use of person- to- person mobile apps in the U.S. is growing rapidly where mobile payment adoption has remained rather sluggish. This has led to discussions that P2P apps may be the right launching point to encourage mobile use for purchases. An article in Business News Daily suggests that PayPal’s Venmo P2P app has already made the transition. Venmo is now being accepted at more merchants, both in physical and digital locations. The article provides some of the reasons why Venmo is being embraced by small businesses:
Because it is easily integrated online, Venmo is a great option for online retailers. Using Venmo means opening a new way to drive sales. It provides a familiar, easy-to-use payment method that younger customers will understand and use.
The biggest draw for both customers and businesses is how quickly a user can transfer money to their bank. The business version provides instant transfer, so it allows businesses to receive money or issue payments on the same day.
Connecting with customers
Venmo’s comment and like features give businesses the opportunity to interact with customers on another level. This allows a business to break down barriers, encourage customers to reach out with questions and interact with the business through a social media-style platform.
Venmo is a subsidiary of PayPal, so it has some backing from a major company when it comes to security. Browne said that while some users have been wary of linking their bank account to an app, most millennial users have no problem using it.
The fee for accepting Venmo is in-line with other acceptance solutions:
There is a fee per transaction for merchants – 2.9 percent and 30 cents per transaction.
Overview by Sarah Grotta, Director Debit and Alternative Products Advisory Service at Mercator Advisory Group
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