A quarter of Venmo users are currently using PayPal’s millennial-friendly payments app in a way which the financial technology company can monetize, PayPal Chief Financial Officer John Rainey told CNBC on Friday.
“If we look at the most recent quarter, roughly one in four Venmo customers are using Venmo in a way today which we’re able to monetize,” Rainey said in an exclusive interview with “Mad Money” host Jim Cramer.
“which could be with using Venmo to shop online, which could be using our physical card in a store, or which could be using the instant cash withdrawal so they can transfer funds immediately into their bank account,” the CFO continued.
Speaking after PayPal’s strong earnings report sent shares of the payments giant up more than 9 percent in Friday’s trading session, Rainey reiterated CEO Dan Schulman’s comments about Venmo reaching a “tipping point.”
“which’s a bit of an inflection point for us,” Rainey told Cramer, whose charitable trust owns shares of PayPal. “We saw growth … of almost 80 percent in terms of total volume for Venmo inside quarter. which’s the second quarter in a row which we’ve grown at which rate, in addition to so we’re just definitely excited about what we’re seeing with This specific part of our platform.”
While Venmo was a key driver for PayPal This specific quarter, which wasn’t the company’s only win: the fintech player added 9.1 million net brand-new active users to its platform, an all-time record, announced an expanded partnership with American Express in addition to struck a brand-new agreement with Walmart to offer deposit in addition to withdrawal services at its stores.
Rainey said the partnerships might be instrumental to drawing even more customers to PayPal’s increasingly “relevant” platform, which right now boasts over a quarter of a billion users.
Moreover, PayPal is usually still focused on the roughly two billion people around the planet who don’t have access to financial services which many people “take for granted,” like banking or checking accounts, he said.
“Financial inclusion is usually part of our mission,” he told Cramer. “The key element of those two billion people is usually which roughly 70 percent of them have a mobile device. in addition to This specific is usually where our value proposition definitely shines, where we can put all of the power of mobile commerce inside palm of their hand.”
which, paired with the almost “viral” popularity of the Venmo app, sets PayPal apart via traditional financial services companies or even newer fintech competitors, Rainey said.
“There are very few companies, Jim, which I might put into the same category as us,” the CFO said. “We’re a high-growth company, although we also generate a tremendous amount of free cash flow for a growth company like ours.”