The Future of Venmo
PayPal acquired the rights to Venmo in 2015 for $800 million! Venmo is an app that allows users to instantly send money to each other, and to their bank accounts. It has grown rapidly in popularity since its creation in 2009 and revolutionized the payment industry by adding a simple, mobile, instant, and soon-to-be crypto platform. That’s right! American business magazine, Forbes predicts Venmo will add an option of anonymity to its users based on promises originally made by PayPal that will completely disrupt the personal banking industry. That’s not all. Check out the following link to see some other predictions by Forbes for what’s in-store for the future of this mobile payment tycoon!
https://www.forbes.com/sites/forbestechcouncil/2018/11/01/victory-over-venmo-nine-predictions-for-the-online-payments-space/
Apart from some economic lag expected from government regulations on Venmo, several of Forbes predictions suggest that Venmo will be another prime example of the “rich get richer.” They have the advantage of being the first ones to invent such a niche market which has helped them gain the support they have today. With over 10 million monthly active users, Venmo has gained enough momentum to keep them going and for “competitors [to just be] fighting for the second spot” – Vikram Joshi. As we know with network effects, Venmo’s value increases the more users they have, because the app with the most people, or the most people you know, tends to be of most use and thus greatest value. This makes it difficult for competitors to gain a foothold in the market, and keeps Venmo on top. Not to mention it’s even more difficult for new competitors to join the market, because they have no existing social network to latch onto, they’d be starting from scratch. This is a difficult feet, but possible from large social media platforms such as FaceBook or SnapChat who have tried to get involved with cash payment options on their platforms as well.
Venmo has come a long way since its creation in 2009, and with endless possibilities in the horizon, hopefully a long way to go. With such a large network, growing rapidly every month, who knows; Venmo could become the main form of banking and currency transaction. We would live in a world with no banks, no cash, no registers, just Venmo.