By PayPal Holdings Inc (NASDAQ: PYPL) chief executive Alex Chriss says Venmo will be generating more than $2.0 billion in annual revenue by 2027.
He made the forecast at the company’s investor event on Tuesday.
Venmo has some 90 million users in the US, and is already a household name for peer-to-peer transactions.
The next chapter in its evolution will now be focused on monetisation, according to Chriss.
Ultimately, the company’s top executive wants to make Venmo a “go-to money movement app.”
PayPal shares are up 3.0% in premarket after he laid out the aforementioned strategy at the investor day.
How PayPal plans on increasing Venmo adoption
PayPal will focus on increasing the adoption of the Venmo debit card in 2025.
This will include introducing features aimed at encouraging in-store purchases and keeping funds within the app.
The financial technology giant based out of San Jose, California plans on making “Paying with Venmo” more attractive for merchants as well.
Meanwhile, offering more value to consumers within the app will likely make them use Venmo for a multitude of purposes and keep more money in their accounts, according to CEO Alex Chriss.
All in all, increased usage will lead to higher transaction volume that will translate to more profit, he added.
PYPL’s long-term financial targets
Alex Chriss expects the Venmo user base to grow by mid-single-digit percentage annually through 2027.
Over the next three years (including 2025), total payment volume attributed to the Venmo debit card will grow at a compound annualised rate of over 20%, while “Pay with Venmo” will hit up to 40%, he told investors at today’s event.
PayPal has already partnered with the likes of Starbucks and DoorDash to grow its footprint in business transactions.
Others notable names that have partnered with PYPL include JetBlue, Instacart, and MoonPay.
In its latest reported quarter, the fintech noted a 50% increase in the number of merchants using “Pay with Venmo”.
Is PayPal stock worth buying in 2025?
Earlier in February, PayPal recorded its financial results for the fourth quarter that topped Street estimates.
On the earnings call, the company’s chief executive told investors at the time:
While we’re still early in monetising Venmo, we have a proven playbook that is resonating with customers.
This gives us confidence as we move to 2025 and beyond.
Chriss’ optimism is shared by Wall Street analysts as well. In a recent note, Paul Golding of Macquarie reiterated his “buy” rating on PayPal stock and raised his price target to $117 that indicates potential for another 55% gain from current levels.
PYPL is attractive to own this year as the company has announced plans of repurchasing up to $15 billion worth of its stock, with about $6.0 billion of it planned for 2025.
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