For years, Venmo has been hailed as a frontrunner in the peer-to-peer (P2P) payments industry due to its explosive growth and intense usage among millennials. Apple is now responding with the launch of its own P2P service, Apple Pay Cash, which not only poses a threat to Venmo but could also help brands close the conversion gap.
Apple Pay Cash operates similarly to Venmo, allowing users to send or request money from others. However, the service’s added convenience could convince iPhone users to make the switch. Apple Pay Cash is housed within Messages, Apple’s native messaging app, so users can exchange money without leaving their text conversations. They can even send funds verbally using built-in voice assistant Siri.
Apple Pay Cash could also be a boon for brands. Users must sign up for Apple Pay to use the new feature, thus increasing adoption of Apple Pay. In turn, an increase in Apple Pay users opens up more one-touch digital payment opportunities for brands, which could help close the conversion gap.
Venmo maintains serious momentum. Transaction volume jumped 93% in Q3 2017 to reach $9 billion, and parent company PayPal still dominates the mobile payments ecosystem with 77% adoption among retailers. However, more than a fifth of DTC brands in L2’s Mobile: Payments report have adopted Apple Pay on their mobile sites, and over a quarter employ more than one mobile payment platform. Could Venmo’s reign could be jeopardized?