- Venmo’s revenue grew by 20% year on year in Q1 2025, far surpassing the growth rate of overall payment volume.
- PayPal added nearly two million new users to Venmo’s debit card service, with total payment volume surging by over 60%.
What happened: Venmo’s Q1 growth driven by debit card adoption and online checkout integration
In its Q1 earnings report, PayPal revealed that Venmo’s revenue increased by 20% compared to last year. The company did not disclose the exact figures, but analysts noted that this growth was higher than Venmo’s 10% rise in total payment volume. A key factor driving this growth was the rising demand for Venmo’s debit card and its integration into online checkout systems.
Venmo, acquired by PayPal in 2013, has been popular for peer-to-peer transfers. However, its ability to generate meaningful revenue had been questioned by investors. In response to competition from services like Zelle and Square Cash, Venmo’s recent revenue gains show improved performance in monetisable products like Pay with Venmo and debit card payments.
In Q1, PayPal added nearly two million first-time users of Venmo and PayPal debit cards. This surge in users helped drive a 60% increase in debit card payment volume. Additionally, Pay with Venmo transactions grew by 50%, and monthly active users of Venmo debit cards increased by 40%.
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Why it is important
Venmo’s increased revenue generation marks a crucial milestone for PayPal, demonstrating the platform’s growing contribution to the company’s financial performance. Historically, Venmo was a key part of PayPal’s growth but struggled with monetisation due to its core business—peer-to-peer payments, which generate little to no revenue. With the success of debit card offerings and online checkout services, Venmo is unlocking new revenue opportunities.
The rise in Venmo’s debit card adoption and transaction volume growth underscores the potential of these monetisation strategies. Analysts from Jefferies and Compass Point note that these developments offer PayPal a key opportunity to boost revenue from one of its most recognisable brands. With new competitors entering the digital payments space, Venmo’s ability to grow its user base and expand monetised services will be vital to maintaining its edge.
Looking ahead, Venmo’s momentum could help PayPal maintain a competitive advantage over rivals like Zelle and Square Cash. As competition intensifies, PayPal’s focus on enhancing Venmo’s monetisation could diversify revenue streams and solidify its position in the digital payments market.
