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Venmo. Key takeaways: Gen Alpha鈥檚 preference for digital competitors likely means these payment apps provide the banking basics Gen Alpha needs at this stage. And that includes the ability to buy what they want, pay and receive money from friends and family, and save some money. They may not be interested in more complex banking services at this time in their lives.

Real-time banking services like Venmo, Zelle, and Google Pay for instant payments and updates. Budgeting tools and AI-powered finance management within their banking apps for seamless financial planning. Access to information like free credit scores in their apps, so they don鈥檛 have to search and potentially pay elsewhere for valuable information.

Payment apps such as PayPal, Venmo, and Cash App have had to rely on QR code payments to give customers an in-store iPhone payment option. But this method has not caught on: Only 2.4% of in-store mobile phone-based transactions were made via QR code in 2023, per Federal Reserve Bank of Atlanta survey data. By contrast, NFC-enabled app and tap-and-pay payment methods garnered a 65.1% share.

Venmo will continue to be a standalone brand. The PayPal Open rollout begins this week in the US, with the individual brands phasing out in April. It will also launch in the UK and Germany next year. Why is PayPal doing this: Rebranding can help PayPal better market itself as a business-to-business (B2B) company.

It launched crypto transfers between Venmo users and through external wallets and exchanges.

Monthly actives for Venmo鈥檚 two monetized products, the Venmo Debit Card and Pay with Venmo, grew more than 30% YoY and 20% YoY, respectively. Pay with Venmo scored a partnership with Instacart in Q4 and with JetBlue at the start of Q1 2025 to sustain this growth. PayPal also secured partnerships with large brands to drive Fastlane volume.

Visa+ will connect Venmo and PayPal before expanding to other wallets. Here's what it means for P2P apps.

If X Money offers these faster transfers for free, it will help set the P2P platform apart from competitors like Venmo, which charges a 1.75% fee for instant transfers. Our take: While partnering with Visa will help put X Money in a stronger position when it launches, the P2P platform will still face an uphill battle in securing consumer adoption.

Currently, users need to leave Reddit and use apps like Venmo or Paypal to complete any transactions. Huffman said the fact that users are already transacting on Reddit lays the foundation for ecommerce options. Those tools, which would let users make in-platform transactions, are in development but are a 鈥渓ittle ways off,鈥� he added.

The news: X (formerly Twitter) is planning its first marketing campaign since Elon Musk took over in 2022, including promoting its payment platform, X Money, which aims to challenge contenders like Venmo and Cash App. Musk鈥檚 campaign could contribute to a further resurgence of brands and advertisers.

Payment networks like Zelle, Venmo, and Cash App provide real-time payment options to consumers鈥攂ut they do not settle the funds. For example, Zelle typically credits transactions instantly to payees. But the actual settlement of funds occurs instantly only via the RTP network (if the sender鈥檚 and recipient鈥檚 banks both use it). Otherwise, transactions are settled later via ACH.

To capitalize on growing stablecoin momentum this year, it introduced a 3.7% annual yield on PYUSD held in PayPal and Venmo wallets. This type of incentive structure can draw in new crypto payment users and help it become a more regularly used form of payment. Payments M&A is taking off.

And when asked which providers they鈥檇 be likeliest to buy from based solely on brand trust, Gen Xers chose Apple, Venmo, and neobanks at a much higher rate than their older peers did. Baby boomers are banks鈥� most loyal customers. Baby boomers, currently ages 60 to 78, are seeking stability and dependability in their financial lives.

Paying by smartphone is now routine for a growing number of consumers, both in stores and online. Recent data shows the size of the user base, shifting demographics, shopper preferences, and how mobile fits into the spectrum of payment options.鈥�

The big three have succeeded in part by carving out their own niches: Zelle is typically used for higher value payments thanks to its bank backing; Venmo is popular among younger consumers for its cost-splitting; and Cash App markets itself as a bank and is popular among crypto users.

Venmo is using new features to retain users and spend. Venmo will maintain relatively stable user growth. We forecast that 72.4 million US consumers will use Venmo this year, a 7.2% YoY increase. It will gradually expand its share of smartphone users from 29.1% this year to 32.5% by 2028. Click here to view the full forecast for Venmo users. But Venmo is losing share of P2P transaction value.

Customers can use the stablecoin for P2P payments between PayPal, Venmo, and third-party wallets and for fee-free remittances via Xoom. While PayPal has not released any of its own data on the stablecoin, so far, adoption seems to be minimal. PYUSD鈥檚 market cap is $503.23 million, per CoinMarketCap, making it the seventh-largest stablecoin.

Venmo鈥檚 introduction of teen accounts has contributed, allowing Gen Zers ages 13 to 17 to pay via Venmo with parental consent. Gen Z is adopting VR faster than are other generations. The number of Gen Z VR users is expected to increase from 25.8 million in 2024 to 33.5 million in 2028. We expect it to take the majority share of VR users from millennials in 2027. What does this mean for marketers?