VenmoBehavior
Study
The Venmo Behavior Study explores valuable insights for merchants to consider toreach a broader audience including Venmo customers' financial habits, purchasing
behaviors and perceptions of Venmo as a payments tool.

Venmo Behavior Study

A Behind the Scenes Look at
the Venmo Customer

Executive
Summaryo

Who are Venmo customers? Venmo skews younger

Spending Continues Its Shiftto Digital and Social Channels

oand more affluent.
omomentum as consumers value convenience and more brands
meet them where they spend time. 53% of Venmo customers

Generosity: Venmo is used regularly for tipping

report spending more time on social media and most Venmo

individuals across different industries and is the2020 has completely upended every
facet of life including the shift from instore commerce to digital commerce.

customers expect to continue their current usage level ofpreferred tipping method after cash and cards whensocial platforms over the next 6 months.

paying for a service. 93% of Venmo customers havetipped individuals in the past 6 months, while 83% reportSocial commerce: Social shopping will continue to seeoOnline purchasing: 65% of Venmo customers have increased

engaging in a tipping activity monthly. Food, drink andtheir online purchasing behavior while 65% reduced their in-

beauty services are the most common tipping venues.

store habits.

During the month of October 2020, Venmo surveyed
2,217 U.S. Venmo customers to gain a firsthandConsumers Want to Pay with
Venmo When Checking Out with
Merchants

account of consumers' new reality including theirfinancial habits, new purchase and shopping
behaviors and their perception of Venmo as apayments tool. The data includes valuable insights
for merchants to consider, such as consumer
interest in paying with Venmo at checkout. TheseoPaying with Venmo demand: Venmo customers express
overwhelming interest to pay with Venmo at merchants if

insights will help merchants as they seek to reach
Venmo’s 65M+ customer base and stay competitive.

presented the option. 47% of customers are interested inpaying with Venmo if offered.
oBrand trust reigns supreme: 89% of customers prefer to paywith Venmo because they trust the brand, it's easy to use andbecause it allows them to split transactions.

© 2020 Venmo Inc. Confidential and proprietary2

Venmo Behavior Study

Table of Contents
01 Venmo Customers and Financial Habits
02 Purchase and Other Behaviors
03 Demand for Paying with Venmo© 2020 Venmo Inc. Confidential and proprietary3

Venmo Behavior Study

01
Venmo
Customers andFinancialHabits
4

Venmo Behavior Study

Venmo customers
are more affluent

Venmo skews
younger

Who are Venmo
customers?
o Venmo skews younger and more affluent

Age1:

HH
income1:30+65%

18-29

35%

77%

$50k+60%
75%

o Venmo’s base is highly educated: 67% ofcustomers have a bachelor’s or higher
degree versus 32% across the US
o 37% of Venmo customers have a child or
teenager in their household

Venmo© 2020 Venmo Inc. Confidential and proprietary

1 Based on US 2019 Census data

40%

<$50k

23%

25%

U.S. Population

Venmo

U.S. Population

5Venmo Behavior Study

Venmo continues to be aplace to spread
generosity

93%

Venmo customers who
have tipped in the past
6 months

o 93% of Venmo customers have tipped individuals
in the past 6 months, while 83% engage in a tipping
activity monthly. Individuals in the food, drink andbeauty industries are the most common recipients.

Q: Which of the following categories do you typically tip for? Selectall that apply | % respondents

o Venmo is the most preferred tipping method toVenmo customers after cash and cards when paying
for a service.

Waiters /bartenders

91%

Barber / salon
services
Drivers in arideshare / cab© 2020 Venmo Inc. Confidential and proprietary

83%50%
6

Venmo Behavior Study

02
Purchaseand OtherBehaviors
7

Venmo Behavior Study

Social Commerce will continue to rise as
consumers value convenience and morebrands meet them where they spendtime

53% of Venmo customers

Facebook and Instagram are some

report spending more time onof the primary social platformssocial media since the start ofused today – most Venmo

the pandemic and 34% indicate

customers expect to continue

their social media usage has nottheir current usage level of socialchanged.

platforms over the next 6 months.

© 2020 Venmo Inc. Confidential and proprietary53%% of Venmo customers spending
more time on social media since
the start of the pandemic

8Venmo Behavior Study

Venmo customers are accustomed to buying online andthese purchasing behaviors will continue to growoOnline purchasing with delivery or pickup
experienced highest growth; while in store
and online deliveries are most frequently
used.

oo

65% of Venmo customers claimed tohave increased their online

oOnline purchasing is most prominent in fashion
retail, followed by food/drinks delivery (48%),
health and beauty products (46%), electronics(44%), gifts (39%), groceries (39%).

purchasing behavior while 65%
reduced their in-store habits.

92%+ of customers have purchased at least
1 item online over the past 6 months.

Q: In which of the following setups did you purchase items of any category in thepast 6 months? Select all that apply | % of respondents

Q: Which of the following categories did you purchase items for ONLINE in
the past 6 months? Select top 3 | % of respondents

70%

Clothing, Shoes & Accessories

91%

In stores

92%

Online with home delivery
Online with curbside pickup© 2020 Venmo Inc. Confidential and proprietary

64%

48%

Food / Drinks delivery
Health & Beauty Products

46%Electronics

44%

Gifts

39%

Groceries

39%* Includes top 6 categories.

9

Venmo Behavior Study

03
Demandfor Paying
with Venmo
1010Venmo Behavior Study

Consumers want to pay
with Venmo whenchecking out withmerchantsInterested in paying with Venmo ifoffered on a merchant's site.

47%
Of customers© 2020 Venmo Inc. Confidential and proprietary11

Venmo Behavior Study

Consumers showed aninterest in rewards
60% of respondents indicated they would be
more likely to use Venmo as a payment
method if rewards were offered.

Q: Which of the following would make you more likely to use Venmo asa payment method? Rank top 3 | % of respondents

60%

Rewards

Availability across favorite
websites / apps

40%

Easier ways to add moneyto Venmo© 2020 Venmo Inc. Confidential and proprietary

30%

Paying for purchase overtime

22%

Easier ways to track andcategorize payments

22%* Includes top 5 categories.

12Venmo Behavior Study

Consumers value
brand trust andease of use

89%%

of consumers prefer to paywith Venmo because they
trust the brand, it's ease ofuse and because it allows
them to split transactions.

When presented the option, 89% of consumers prefer to
pay with Venmo because they trust the brand, its easeof use, and the ability to split transactions with friends.

This is especially true for fashion
retailers and merchants ineveryday spend categories,
which consumers ranked as
categories for which they are
most likely to use Venmo as apayment method.

© 2020 Venmo Inc. Confidential and proprietary

By offering Venmo as a payment
option, merchants open theirservices to an audience of 65M+
consumers already on Venmo.

13Venmo Behavior Study

Q: For what purchasecategories are you most
likely to use Venmo as apayment method?
Rank top 3 | % of respondents* Includes top 4 categories.

Clothing, shoes &accessories

56%

Restaurants/
beverages
Groceries
Food delivery /drinks© 2020 Venmo Inc. Confidential and proprietary

48%
37%
34%

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Venmo Behavior Study

Methodology
Venmo issued its first study on consumer behavioral
changes since the COVID-19 pandemic started.
In October 2020, we surveyed 2,217 U.S.

Survey was administered through Focus

Venmo customers to gain a firsthand,

Vision. Responses are weighted toreal-time account of how theirensure representation of the Venmo

demographic, financial and purchasepopulation by age, income and regional

behaviors have changed over time anddistribution across the U.S.

how Venmo can help them adapt to thenew normal.

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