Thursday, August 23, 2018

Brands Cashing In on Mobile Payments with Venmo

Here’s a fact: mobile online retail payments are expected to reach $319 billion by 2020. Yup, that’s right… billion with a “B.” With the rise of so many popular mobile payment apps (think: PayPal, Venmo, Zelle, Apple Pay, Google Wallet, Square Cash, and even Facebook Messenger), it’s probably not a big surprise. But integrating mobile payment options alone isn’t enough for today’s shoppers–they want experiences that will make the shopping experience as seamless as possible, which means they definitely won’t be willing to download a new standalone payment app. Let’s dive into a few of the brands that are partnering with mobile payment giant Venmo and acing the mobile payment test.

Abercrombie & Fitch
In early August, Abercrombie & Fitch integrated Venmo, the popular peer-to-peer payment option among Millennials and Gen Z, as a payment option in A&F Co. and Hollister mobile apps. Knowing nearly three quarters of Venmo users are below the age of 35, the move to incorporate this specific payment app is a smart one, as it specifically targets A&F Co.’s core customer base.  

“We are excited about our Venmo integration, as we know Venmo is an increasingly popular payment option among our millennial and Gen Z customer bases. As a company, we aim to provide engaging, seamless brand experiences, from product discovery through to checkout and fulfilment; adding Venmo as a payment option supports that goal, and is a powerful addition to our popular, highly-rated apps,” said Joanne Crevoiserat, Chief Operating Officer of Abercrombie & Fitch Co.

Williams-Sonoma
Shoppers at the well-known kitchenware and home furnishings store have been able to use Venmo as a payment option for almost a full year now. Last September, Williams-Sonoma announced customers could buy and, most importantly, split purchases from bridal registries using Venmo. With the move to incorporate a mobile payment option, Williams-Sonoma hopes to bring in new, and perhaps younger, customers.

Uber and Uber Eats
There were more than 6 million payments on Venmo mentioning “Uber” in the description in the past year–which means tons of users are using the popular payment app to split the cost of Ubers. So, it’s no surprise that Uber and Venmo have teamed up. As of this summer, all Uber and UberEats customers in the U.S. can use Venmo to make payments for no additional fee with a simple “Pay with Venmo” button.

Marco Mahrus, Uber’s head of payment partnerships, has this to say about the partnership:   

With so many of our riders and eaters already turning to Venmo as a way to pay a friend back for that last ride or meal, we’re proud to have built a seamless, easy-to-use connection between our apps.”

With more than 2 million merchants already accepting Venmo payments, it’s a foregone conclusion that brands will continue to add mobile payment options to keep their shopping experiences fast and frictionless. Brands that keep customers top of mind when creating, implementing, and iterating upon their mobile payment initiatives are sure to create easy, seamless payment experiences that will make doing business with them a no brainer.