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Along with expanded access to Pay with Venmo and a buzzy ad campaign, Venmo is trying to reach key demographics.

The news: PayPal users can get 20% cash back on their Taco Bell orders if they check out with PayPal or Venmo in-app or online, per a press release. Our take: For Taco Bell enthusiasts, 20% cash back every week may be too good of an offer to refuse.

The news: PayPal partnered with the Big Ten and Big 12 conferences to enable payments for participating student-athletes. Our take: Capitalizing on young, emerging student consumers is a strong opportunity to secure long-time and loyal PayPal and Venmo users.

The news: PayPal is launching storefront-style ads that allow users to buy products directly within display ads on publisher sites, using PayPal or Venmo without leaving the page. Debuting in the US with partners like Business Insider and Vox Media, the units will later expand to include carousels and listings. This move strengthens PayPal鈥檚 financial media network footprint after its 2023 Ads launch. Our take: As FMN spend is set to reach $1.78B by 2027, PayPal is embedding commerce where consumers already are. These shoppable ads address friction, drive impulse purchases, and position PayPal as a safeguard against rising AI-driven agentic commerce.

The expanded partnership boosts merchant acceptance for both Fastlane and Pay with Venmo

PayPal is the most popular mobile payment app that US adults typically use, with over twice as many users as the next most popular choice, Venmo, according to November 2024 data from YouGov.

Gen Z is the first mobile payments-native generation. By 2028, 67.8% of US adults will be mobile wallet users, per our forecast. Gen Zers are already way ahead: 85.1% made an in-store or online payment using their phone in 2023, according to Federal Reserve Bank of Atlanta.

Extension of PayPal Everywhere: PayPal is in the middle of a major marketing campaign to remind users that PayPal and Venmo are for all kinds of transactions. This partnership underscores the scope of PayPal鈥檚 payment platform and widens users' ability to pay with its services.

This feature will help Venmo catch up to other P2P apps and bring in more frequent users.

Branded checkout and Venmo revenue growth offset lower Braintree revenues, part of an intentional shift away from unprofitable Braintree volume. Value-added services revenues jumped 17% YoY. Transaction margin dollars鈥擯ayPal鈥檚 key measure of profitability鈥攊ncreased 7% YoY, marking five consecutive quarters of profitable growth.

PayPal offers the PayPal debit card, Venmo debit card, and Paypal prepaid Mastercard. Its debit offerings鈥� TPV shot up 64% YoY in Q1 2025. PayPal also noted 80% growth among its Venmo and PayPal debit cardholders, signaling consumer eagerness for the product. PayPal also already offers a cash-back credit card.

Shoppers can ask Perplexity to find products for them and then use PayPal or Venmo to check out. The entire purchase process鈥攊ncluding payment, shipping, and invoicing鈥攃an be managed without needing to enter a password or any other manual inputs. Key stat: 47% of shoppers worldwide are interested in having AI agents make purchases on their behalf, per Salesforce.

Starting this summer, users will be able to earn 3.7% annually on PYUSD held in their PayPal and Venmo wallets. Expanded Coinbase tie-up. Coinbase users can now buy and sell PYUSD with no platform fees. The companies are also exploring new stablecoin-based payments and banking solutions, as well as other use cases for PYUSD in DeFi and on-chain platforms.

Only the Venmo Credit Card offers similar automation, but the Venmo card isn鈥檛 available in Canada. And there鈥檚 no comparable card in the Canadian market. Our take: The CIBC Adapta card will help the issuer keep up with shifting consumer preferences. The CIBC card should be attractive to consumers in Canada given their love for cash back rewards.

The integration is a win for PayPal after Amazon stopped accepting Venmo on its ecommerce site

For example, PayPal-owned Venmo launched Venmo Groups in 2023, and Apple Wallet began offering Tap to Cash last fall to make it easier to split payments. Our take: This feature can help Monzo keep its current customers more engaged, giving them additional reasons to visit the Monzo app鈥攚hich could boost loyalty.

Perplexity made PayPal its exclusive payment partner, streamlining all AI query-related shopping through PayPal or Venmo. Amazon is testing 鈥淏uy for Me,鈥� which employs agentic AI to facilitate purchases on the customers鈥� behalf. Visa鈥檚 Intelligent Commerce employs AI agents to buy items or services based on a customer鈥檚 pre-set preferences.

The rule mandates that financial institutions (FIs), credit issuers, and payment apps like Venmo and Cash App must transfer consumer financial information to other providers for free at the consumer鈥檚 request. As it stands, large FIs with over $850 million in assets must comply with the rule by 2026. Smaller institutions have until 2030.

When it comes to using leading wallets, Gen Z is most likely to use Venmo, Apple Pay, and Zelle. They will also drive in-store mobile wallet adoption. Gen Z continues to propel BNPL growth without triggering debt alarms. In 2028, Gen Z will surpass millennials to become the biggest generation of BNPL users.

By integrating with apps and websites that consumers are already using, it makes it easy for them to start using the service, while its competitors like Venmo face the initial hurdle of getting consumers to download their apps. Zelle鈥檚 bank relationships also help to establish trust among its users, building off of the existing trust they have with their banks.

In October, the Consumer Financial Protection Bureau (CFPB) released its final open banking rule, which requires FIs, credit card issuers, and payment apps like Venmo and Apple Pay to transfer a consumer鈥檚 financial data to other providers upon that person鈥檚 request.

Shoppers can ask Perplexity to find products and then use PayPal or Venmo to check out鈥攃ompleting the entire process including payment, shipping, and invoicing鈥攚ithout needing to enter a password or any other manual inputs.