Venmo, the peer-to-peer payment app owned by PayPal, is gearing up to discontinue web support for its payment service. TechCrunch, citing an email to users, reported that the Venmo.com website will phase out support for payments, and eventually there will be even less functionality on the website.
According to the report, the email to customers reads: “NOTICE: Venmo has decided to phase out some of the functionality on the Venmo.com website over the coming months. We are beginning to discontinue the ability to pay and charge someone on the Venmo.com website, and over time, you may see less functionality on the website – this is just the start. We, therefore, have updated our user agreement to reflect that the use of Venmo on the Venmo.com website may be limited.”
The move on Venmo‘s part is a big change for the company, which previously provided its service both via the mobile app and website. Currently, the website lets users sign in and view transactions, charge friends and submit payments. The website also offers the functionality to send payment reminders, add friends, comment on transactions and edit user profiles.
TechCrunch noted that it’s not surprising to see Venmo phase out web support, given the substantial overlap between Venmo and parent company PayPal. However, Venmo is cheaper and does have more of a social media element. PayPal charges 2.9 percent plus a $0.30 fixed fee on payments from credit and debit cards in the U.S., while Venmo charges 3 percent for credit card payments and doesn’t charge anything for debit card payments.
The report noted that Venmo is facing increased competition from Zelle, which could be a factor in the decision to focus more on its app. Venmo has 22.9 million users, while Zelle is forecasted to reach 27.4 million users this year, noted the report.
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