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Venmo lost a lot of money due to payment fraud

November 27, 2018 Business 1 Views Managers were obviously worried that the meeting would be big enough to dent PayPal…

Managers were obviously worried that the meeting would be big enough to dent PayPal overall bottom line and lead it to miss analysts estimates. They also knew that the customers would be annoyed by the measures used to control fraud. Product exec Ben Mills said he was “pissed” Venmo had to “hurt our customers” to get fraud under control, according to an email.

PayPal suggests a slightly different story in general. One spokesman told WSJ that the increase in losses derives from introducing new features to the Venmo quarter and that the payment company’s loss levels were below 0.35 percent for the quarter. They have fallen since and are “lower than the overall average” for PayPal, said the speech seeker.

If the bucket is correct, it illustrates the challenges Venmo faces. While the company may be synonymous with mobile payments for some, it is also expensive for PayPal. Venmo does not charge for most transactions and only recently initiated debit for immediate transfers. If it’s going to have a healthy long-term future, it may need to keep a close eye on fraud and find more ways to generate money.


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