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upstart writes:

Submitted via IRC for SoyCow1984

Venmo lost a lot of cash due to payment fraud

Venmo apparently had a good reason for disabling web payments and temporarily shutting off instant money transfers -- it was losing money hand over fist. The Wall Street Journal has obtained documents indicating that the PayPal-owned service took a 40 percent larger than expected operating loss ($40 million) in the first quarter of 2018, and payment fraud played a major factor in that financial blow. Where Venmo had expected dodgy transactions to represent 0.24 percent of its activity, the numbers shot up to 0.4 percent in March.

[...] If the scoop is accurate, though, it illustrates the challenges Venmo is facing. While the company might be synonymous with mobile payments for some, it's also expensive for PayPal. Venmo doesn't charge for most transactions and only recently started charging for instant transfers. If it's going to have a healthy long-term future, it might need to keep a very close eye on fraud and find more ways to generate cash.

Original Submission

1. "upstart" - https://soylentnews.org/~upstart/
2. "Venmo lost a lot of cash due to payment fraud" - https://www.engadget.com/2018/11/26/venmo-losses-blamed-on-payment-fraud/
3. "disabling web payments" - https://www.engadget.com/2018/06/15/venmo-no-more-web-payments-charges/
4. "shutting off instant money transfers" - https://www.engadget.com/2018/03/22/venmo-temporarily-halts-instant-money-transfers/
5. "obtained" - https://www.wsj.com/articles/venmo-caught-off-guard-by-fraudsters-1543068120
6. "charging for instant transfers" - https://www.engadget.com/2018/10/13/venmo-increases-fees-on-instant-money-transfers/
7. "Original Submission" - https://soylentnews.org/submit.pl?op=viewsub&subid=30315

printed from SoylentNews, Venmo Lost a Lot of Cash Due to Payment Fraud on 2023-07-18 00:17:38