Cripplecat

Venmo monetization is underway going from virtually $0 revenue just a few years ago to $450 million annual run rate, 39 bps monetization rate. Compared to PayPal’s overall take rate of 2.5%, it would appear that Venmo is under-monetization. Only ~1/3 of its payment volume generates revenue, driven by instant transfer fees – 100 bps fee. Management expects Pay with Venmo to become a significant driver (~2.6% fee), but adoption has been slow so far. Pay with Venmo (PWV) has had limited consumer awareness. Most of PWV volume happened through user clicking through the PayPal checkout button to reveal the PWV option. Thus, a significant percentage of PWV volume has come from users that already use the PayPal button - cannibalizing PayPal checkout volume. As PWV was launched a few years ago, I believe many overlapped users have already seen the PWV option wherever it is available. The slow uptake implies 1) there is little user overlap or 2) there is significant user overlap, but few opted t...

Green Dot is a vertically integrated fintech/payment company mainly serving unbanked/underbanked population – people with limited access to the traditional banking system. It emulates traditional banking experience (cash deposit/withdrawal, digital payment, bank accounts) through a network of over 100,000 retail locations and digital banking. Its consumer business (59% of revenue, 93% of earnings, -8% y/y) pioneered the prepaid cards industry that allowed its core customers to participate in digital payment. As of FY19, Green Dot has 5 million active accounts (-5.6% y/y). Green Dot launched Banking-as-a-Service platform (39% of revenue, 7% of profit, +26% y/y) to grow 2B business, where GDOT becomes the back-end technology to help customers provide payroll, banking, and disbursement service to employees and/or customers. BaaS counts Apple, Uber, Intuit, and Walmart among its customers.