Poshmark Inc. is one of the first online marketplace apps to integrate peer-to-peer payment service Venmo into its checkout flow.
Poshmark allows consumers to shop for used apparel that consumers list themselves on the app. 90% of Poshmark’s transactions are made in-app, says Olivia Tam, Poshmark’s vice president of marketplace operations. On average, consumers spend 25 minutes a day in the app and open the app seven to eight times a day, she says.
PayPal Holdings Inc.’s Venmo app traditionally has been used only for peer-to-peer payments, however, since July merchants can integrate a “pay with Venmo” button on their app checkout page.
Poshmark already has several expedited payment buttons on its checkout page, including PayPal, Apple Pay and Android Pay. The Poshmark app is able to recognize which payment apps a consumer has on her smartphone and it can prioritize how the buttons are ordered when a shopper goes to checkout on Poshmark. For example, if the shopper has the Venmo app, the retailer will display that button first, even above Apple Pay, PayPal or a credit card, Tam says.
While several payment buttons may seem like it would clutter a checkout page, Tam says it helps shoppers complete their first purchase when they have no saved payment information in the app. Payment buttons also decrease the number of error messages a consumer receives, which occurs often when keying in long credit card numbers, she says.
“Our users have difficulty typing in 16 digits,” Tam says.
Tam would not say how many users are checking out with Venmo, only that adoption has been promising. Venmo is a good fit for Poshmark because both companies focus on a social, millennial audience, Tam says. For example, both apps have a news feed where consumers share what they have purchased. Venmo also allows consumers to split a payment among friends.
It took about two weeks for Poshmark to set up the Venmo integration. Since Poshmark already has PayPal checkout and the technology behind it via PayPal-owned payment processor Braintree, it was not too difficult for the marketplace, she says. Venmo charges merchants 2.9% per transaction made with Venmo, says Jay Parekh, director of business development at Venmo. There is no monthly fee or service fee for the integration.
Poshmark declined to disclose its gross merchandise value, only that a sale is made every few seconds within the app and millions of consumers visits the app every day. About 2 million consumers are selling on Poshmark, and there is about a 60-70% overlap between buyers and sellers, Tam says.
Poshmark takes a 20% cut of all sales, and if the cost of the item is less than $15, the marketplace takes a minimum of $2.95. An item will ship within two to three days and costs the buyer $5.95 as long as the order is less than five pounds. The buyer pays for the label, and once she completes the purchase, Poshmark sends the shipping label to the seller.
11 apps have a Venmo button in their app including restaurant White Castle, meal-delivery service Munchery Inc., ticketing app Gametime United Inc., beauty-booking services app Priv, peer-to-peer marketplace Hop Market, peer-to-peer marketplace Wish, parking spot finder Parking Panda, moving service Dolly, grocery retailer Boxed Whole sale (No. 405 in the Internet Retailer 2016 Top 500 Guide), and restaurant delivery service Delivery.com. Venmo is looking into putting the payment option onto the mobile web, Parekh says.Favorite