Venmo processed USD3.2 billion in Q1 2016, up 29% sequentially and 146% year-over-year (YoY). This is in line with BI Intelligences prior estimate that Q1 volume would fall between USD3.1 billion and USD3.3 billion.
Venmos YoY growth rate has slowed for six straight quarters since reaching a peak of 395% in Q3 2014.
PayPal has long been a dominant online payments company but is now shifting its focus to mobile, which is a high-growth segment in commerce. PayPal is doing this through Pay with Venmo, a mobile checkout button that is tied to a users Venmo account.
If Venmo users start making in-app purchases with this checkout button, PayPal will be able to monetize Venmo and will also build a base of mobile-first customers who will help drive up PayPals mobile commerce volume.
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