Venmo outpaces Starbucks

According to the most recent Business Insider Intelligence estimates the PayPal-owned Venmo overtook the Starbucks mobile payment app in terms of U.S. transaction volume during the second quarter of 2014. Venmo transaction volume reached $468 million in the second quarter of 2014 representing a 347% increase year-over-year increase, bringing it just ahead of Starbucks which grew to $413 million.

While currently the Venmo app is being used as a peer-to-peer payment network its growth and backing from PayPal positions it as a possible impact player if it pivots towards retail payments in the future. A similar technology is currently making waves in Kenya, where more than 80% of the country’s population pays for goods and services on their smartphones. M-PESA relies on users leveraging their smartphones to move money between peers but also empowers retail transactions from cab fares to larger purchases.

As Venmo continues to build its user base, and consumers become more comfortable moving money between their peers, mobile transactions will continue to rise across the country.