Out of the ashes of the banking meltdown, small financial technology startups sprung up in their places. Since 2008, one of the biggest fintech startups to succeed is Venmo. Venmo is an app based peer to peer transaction app. The race to dominate the mobile transaction market has been a competitive race for the last 10 years, however, Venmo has proved to be the victor in the market with over 2.1 billion dollars transacted every quarter.
Many people have wondered how Venmo won the race for an everyday p2p transaction app when the market has been so competitive for so long. The answer lies in multiple variables. Venmo was the only app that required users to sign in through Facebook. This helped Venmo secure a large millennial user base while helping users process transactions quicker with their Facebook friends already being linked to their Venmo account. Another crucial factor to Venmo’s success was their timing. In 2010, mobile pentration in the US had surpassed 75% of the population. People felt more comfortable using mobile application to handle sensitive tasks such as the exchanging of money. The culmination of these factors led Venmo to win the P2P transaction market.
Great insight of Venmo’s success. I think after Paypal acquired Venmo, Paypal also provides the transaction platform to help Venmo grow.