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PayPal's Venmo: Can Monetization Sustain Its Mid-Teens Growth?
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Key Takeaways
PayPal's Venmo TPV rose 14% in Q2, marking a seventh straight quarter of double-digit growth.
Venmo Debit Card MAA grew over 50%, while Pay with Venmo MAA increased about 30% year over year.
PYPL says Venmo monetization helped drive transaction-margin growth as it expands beyond branded checkout.
PayPal Holdings, Inc.’s (PYPL - Free Report) Venmo is becoming a bigger part of the company’s growth story as it pushes beyond peer-to-peer payments. In the second quarter of 2026, Venmo's total payment volume (TPV) rose 14% year over year, marking a seventh straight quarter of double-digit growth. Management said Venmo and Braintree were growing TPV in the mid-teens, as PayPal seeks to diversify growth beyond branded checkout.
Venmo Debit Card monthly active accounts (MAA) grew more than 50% year over year, while Pay with Venmo MAA rose about 30%. Pay with Venmo grew 44%, well above PayPal’s 2% currency-neutral growth in online branded checkout, showing stronger use of the app beyond money transfers.
Monetization improves when customers adopt more Venmo products. Customers using both Venmo Debit and Pay with Venmo generated more than nine times the average revenue per account of peer-to-peer-only users. This customer group has roughly doubled in size over the past year, giving management a path to lift revenues without depending on account growth.
PayPal is rebuilding the Venmo app to improve product discovery and engagement. Venmo feature development accelerated fourfold in the first half of 2026. Management plans to bring more PayPal financial-services capabilities into Venmo, using shared technology, identity and risk systems.
Venmo’s progress matters because PayPal is looking for faster growth outside branded checkout. In the second quarter of 2026, the company reported TPV of $486.4 billion, up 10%, while transaction margin dollars excluding interest on customer balances grew 3%. Management said Venmo monetization was one of the drivers of transaction-margin growth.
How Are Block & Apple Doing in the Payments Space?
Block, Inc.’s (XYZ - Free Report) Cash App supports peer-to-peer transfers, spending and merchant payments. In June 2026, Block introduced Cash App Tags, NFC-enabled accessories linked to Cash App Card, expanding contactless payments beyond phones and cards. Cash App serves roughly 59 million monthly transacting active users. In second-quarter 2026, Cash App gross profit grew 31% year over year to $1.97 billion.
Apple (AAPL - Free Report) continues to broaden the utility of its payments ecosystem through Apple Pay, Apple Wallet and Tap to Pay, making the iPhone an increasingly important platform for both consumers and merchants. In June 2026, Apple announced Visual Intelligence for splitting bills with Apple Cash and a redesigned Apple Pay checkout.
PYPL’s Price Performance, Valuation & Estimates
Shares of PayPal have gained 29.1% in the past three months, underperforming both the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, PayPal shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 10.47X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 18.66X.
Image Source: Zacks Investment Research
PayPal’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $5.37 over the past week. The consensus estimate for the metric indicates a year-over-year increase.
View the Zacks #1 Rank List
Image: Bigstock
PayPal's Venmo: Can Monetization Sustain Its Mid-Teens Growth?
Key Takeaways
PayPal Holdings, Inc.’s (PYPL - Free Report) Venmo is becoming a bigger part of the company’s growth story as it pushes beyond peer-to-peer payments. In the second quarter of 2026, Venmo's total payment volume (TPV) rose 14% year over year, marking a seventh straight quarter of double-digit growth. Management said Venmo and Braintree were growing TPV in the mid-teens, as PayPal seeks to diversify growth beyond branded checkout.
Venmo Debit Card monthly active accounts (MAA) grew more than 50% year over year, while Pay with Venmo MAA rose about 30%. Pay with Venmo grew 44%, well above PayPal’s 2% currency-neutral growth in online branded checkout, showing stronger use of the app beyond money transfers.
Monetization improves when customers adopt more Venmo products. Customers using both Venmo Debit and Pay with Venmo generated more than nine times the average revenue per account of peer-to-peer-only users. This customer group has roughly doubled in size over the past year, giving management a path to lift revenues without depending on account growth.
PayPal is rebuilding the Venmo app to improve product discovery and engagement. Venmo feature development accelerated fourfold in the first half of 2026. Management plans to bring more PayPal financial-services capabilities into Venmo, using shared technology, identity and risk systems.
Venmo’s progress matters because PayPal is looking for faster growth outside branded checkout. In the second quarter of 2026, the company reported TPV of $486.4 billion, up 10%, while transaction margin dollars excluding interest on customer balances grew 3%. Management said Venmo monetization was one of the drivers of transaction-margin growth.
How Are Block & Apple Doing in the Payments Space?
Block, Inc.’s (XYZ - Free Report) Cash App supports peer-to-peer transfers, spending and merchant payments. In June 2026, Block introduced Cash App Tags, NFC-enabled accessories linked to Cash App Card, expanding contactless payments beyond phones and cards. Cash App serves roughly 59 million monthly transacting active users. In second-quarter 2026, Cash App gross profit grew 31% year over year to $1.97 billion.
Apple (AAPL - Free Report) continues to broaden the utility of its payments ecosystem through Apple Pay, Apple Wallet and Tap to Pay, making the iPhone an increasingly important platform for both consumers and merchants. In June 2026, Apple announced Visual Intelligence for splitting bills with Apple Cash and a redesigned Apple Pay checkout.
PYPL’s Price Performance, Valuation & Estimates
Shares of PayPal have gained 29.1% in the past three months, underperforming both the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, PayPal shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 10.47X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 18.66X.
Image Source: Zacks Investment Research
PayPal’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $5.37 over the past week. The consensus estimate for the metric indicates a year-over-year increase.
Image Source: Zacks Investment Research
PayPal currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.