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In a newly released update for iOS and Android, Venmo, the popular PayPal-owned peer-to-peer (P2P) transfer app, added QR code functionality so that users can more easily add friends and family.
Users can access their personalized QR code through a new “Scan Code” menu option or a thumbnail next to their name, and can allow other users to scan it directly in Venmo, send it via messaging apps or email, or save it to their phone, according to TechCrunch.
The move will make using Venmo simpler and more frictionless.
- Previously, adding friends on Venmo was a pain point. In the past, users had to type someone else’s name, user name, or phone number, or they could log into Venmo’s site to send an SMS invitation, according to TechCrunch. That was challenging if someone had an exceedingly common name, or conversely, an uncommon name or user handle that was hard to spell, and could have stymied some payments or pushed users to an alternate service.
- Now, the firm is playing on user habits to simplify that process. Users can skip the search stage, which could add friction on mobile devices with small screens, instead just scanning a code or tapping one they receive in a messaging app. That makes the process much simpler, especially since the firm is playing on consumers’ rising penchant for the smartphone app and extreme engagement with chat apps, which count 3.6 billion monthly active users among just the top players.
- And that’s key to ensuring robust usage. Peer-to-peer (P2P) apps like Venmo thrive on the network effect — when a user adds a friend to make a payment with the app, they bring the recipient into the app’s ecosystem, which in turn grows the number of users and could incentivize that customer to begin engaging with the app more often. Making it as easy as possible to add users, and therefore complete payments, ultimately helps Venmo grow and ensures loyalty.
This could help Venmo maintain its lead as the market heats up. Mobile P2P is becoming popular, with volume estimated to grow to $ 336 billion in 2021. That’s leading a number of firms to jump into the arena, including heavyweights like the bank-owned Zelle, which could reach up to 86 million consumers at launch, and Apple. These players could threaten Venmo’s dominance — the app is the ecosystem’s likely leader, and the top choice among millennials. Making it as simple and frictionless as possible to transact and grow the network is critical as Venmo works to maintain its stance and continue its rapid growth.
BI Intelligence, Business Insider’s premium research service, has compiled a detailed report on mobile P2P payments that:
- Forecasts the growth of the P2P market, and what portion of that will come from mobile channels, through 2021.
- Explains the factors driving that growth and details why it will come from increased usage, not increased spend per user.
- Evaluates why mobile P2P isn’t profitable for companies, and details several cases of attempts to monetize.
- Assesses which of these strategies could be most successful, and what companies need to leverage to succeed in the space.
- Provides context from other markets to explain shifting trends.
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