According to Chief Executive of PayPal Dan Schulman, Venmo users are clamoring for a new way to use the service beyond just sending money. Paypal’s first-ever investment in blockchain might give us a hint as to what that might look like.
For the first time ever, PayPal has disclosed the number of users currently active on its Venmo service. According to its first-quarter earnings numbers, the peer-to-peer money sending platform had some 40M active accounts — a number which shocked some analysts. Deutsche Bank’s Bryan Keane called the figure “ahead of most people’s estimates.”
However, PayPal’s Chief Executive Dan Schulman told MarketWatch that Venmo is set for significant expansion. Users are apparently “clamoring” for new ways to use the service beyond just simply sending funds. In the future, Schulman said, Venmo customers may have the ability to use their accounts directly for e-commerce purchases.
So-called “smart buttons” on e-commerce sites would be able to detect whether a shopper is a Venmo user. Schulman also suggested that these “smart buttons” could be incorporated into local wallets, like iDEAL in the Netherlands — which would make Venmo’s payment options more familiar to international users.
Speculation Over Paypal’s Blockchain Investment Persists
Earlier this month, PayPal announced that it was investing in a blockchain company for the first time ever. Called Digital ID, the company raised $15M from PayPal and other companies during its Series A funding round.
It’s clear that PayPal is looking to incorporate blockchain into its security protocols. This will likely be crucial not only for Paypal’s own services but for Venmo as well.
Schulman said that Venmo plans to expand its services to e-commerce and international users, but this would also require a more stringent verification process. PayPal’s investments in Digital ID would be in line with Venmo’s expansion plans.
Will Venmo’s expanded services possibly include Paypal’s newfound focus on blockchain technology? Let us know your thoughts below.