On Tuesday, Paypal Holdings Inc (NASDAQ: PYPL) announced that Venmo, its mobile payment service, is now accepted at over two million U.S. retailers, allowing Venmo users to shop at locations where Paypal is also accepted. Retailers include Lululemon Athletica inc.(NASDAQ: LULU), Forever 21, and Foot Locker, Inc. (NYSE: FL), according to Paypal.
Venmo is a popular mobile payment service application among millennials. The app is mainly used as a digital payment method among friends or family for situations such as splitting a dinner bill, a night out, or even paying a friend back.
But for the past year Paypal has been implementing the service into businesses. Paypal is now trying to expand the business accepting Venmo.
Venmo links customers debit cards through the application then they can request or send money to other users. The money will automatically be withdrawn from the sender’s bank account and deposited into the receiver’s Venmo account. Then the receiver can transfer the funds from the Venmo account into his or her bank account.
“Offering a way to pay at millions of retailers is a major step in the evolution of Venmo,” said Bill Ready, Chief Operating Officer of PayPal. “Our vision for Venmo is to not only be the go-to app for payments between friends, but also a ubiquitous digital wallet that helps consumers spend wherever and however they want to pay, regardless of device. Through 2017 and beyond, we will continue to evolve the payments experience that has helped make Venmo a cultural staple, while also applying that same magic to split, share and pay in new ways.”
Paypal says that to make it easier for Venmo customers, the company will soon implement an instant money transfer from Venmo to their bank accounts via debit cards with a $0.25 transaction fee per transfer, Paypal said in the statement.
Venmo customers will also be eligible for the same protection as Paypal. For example, Venmo customers can request a full refund if they don’t receive an item or if it’s different than what was described, according to TechCrunch.