In the increasingly congested market for peers payments, Venmo displays a momentum while Cash App has struck an approximate patch.
The parents of the two companies have declared quarterly results this week. PaypalWho owns Venmo, said a profits and has retained his forecasts for the year. BlockAs for him, dropped in prolonged exchanges Thursday after the parent of the application in cash has missed income and issued disappointing advice.
VenMo and Cash App are competing simultaneously to swallow more consumers for their peer-to-peer offers while adding services such as debit, credit and transfer services so that they can really earn money from these users.
For the CEO of Paypal, Alex Chriss, who resumed the payment company in difficulty in 2023, the monetization of Veno is a key element of his recovery plan.
VenMo returned jumped 20% in the first quarter compared to the previous year, although Paypal did not provide figures in dollars. Paypal highlighted the growing adoption of features such as the Vendo debit card, instant transfers and integration into the online cash register. The company said that user monetization is improving and that Venmo continues to play a role in its broader thrust of electronic commerce.
The income in Venmo increased the total payment volume rate twice, which has increased by 10%, reflecting progress in the transformation of commitment to profit.
During the quarter, Paypal added nearly two million debit card users for the first time on Paypal and VenMo, and said that the VenMo debit payment card volume increased by more than 60%. The monthly assets on the card increased by around 40%, while the Veno volume jumped by 50%.
“We looked at Venmo and the investment is starting to bear fruit,” said Chriss when the company's profits are called.
Block CEO, Jack Dorsey took a different tone on the call of his business.
Cash App posted gross growth of 10% of profits from one year earlier to $ 1.38 billion in the first quarter. Paypal gross payment volume, Or a measurement of money passing through Square and Cash App, came to $ 56.8 billion, missing the average of the $ 58 billion analyst, according to Streetaccount.
Dorsey has recognized the recent underperformance of Cash App.
“I just don't think we were sufficiently concentrated and that we had enough attention to the network and the density of the network, and that is our foundation,” he said.
Dorsey noted that some users still do not consider the cash application as a real banking platform, in part because their experience with the application may feel limited or restrictive when you try to move or access the funds. The company promotes its loan program, Cash App Borrow, which has received the approval of the Federal Deposit Insurance Corporation and can now provide internal creation and maintenance.
“We of course want to deepen the commitment with our customers thanks to banking services and to borrow, and I have no doubt that we will do it,” said Dorsey. “But at the same time, we must make sure that we are continuously cultivating our network, and it starts with peers.”
WATCH: Interview with Paypal PDG Alex Chriss
