The news: PayPal-owned Venmo will launch accounts for children ages 13-17 next month, per The Verge. Venmo Teen accounts will let teens send and receive money via the app and include a debit card.
Here’s how it works: Venmo Teen accounts come with parental safety controls.
Why this can succeed: We expect Venmo Teen will reward Venmo with user and volume growth.
The bigger picture: PayPal is on a journey to monetize Venmo by expanding beyond P2P.
Venmo Teen and its associated debit card can help push Venmo along its path to profitability. Venmo can benefit from debit card transaction fees. And sending wages to the Venmo Teen accounts may encourage these teenagers to then checkout with Venmo.
Digging Deeper: For more on PayPal’s strategy during this period of economic uncertainty, check out our PayPal 2022 report.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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