“Venmo me.”

The phrase—synonymous with “pay me”—has become common among young adults when splitting cabs, bar tabs and rent. That’s why consumers often think of Venmo only as a mobile peer-to-peer payment service. However, since 2016, Venmo, which is owned by PayPal Inc., has allowed merchants to accept Venmo as a form of payment with its service Pay with Venmo.

Roughly 2 million merchants accept Venmo as a form of payment, according to a Venmo spokeswoman, including shoe retailer Foot Locker Retail Inc., athletic apparel retailer Lululemon Athletica Inc., apparel marketplace Poshmark, apparel retailer Urban Outfitters Inc., wholesale merchant Boxed Wholesale, flash-sale site Zulily, and apparel merchant Abercrombie & Fitch Co.

While that’s a sizable number, it’s just about 12% of the 17 million businesses that accept PayPal. But the number of merchants accepting Venmo is growing thanks to its unique advantages—its users can access a news feed that allows consumers to showcase their purchases to friends and consumers often keep funds in their accounts that they can use to make purchases. Those elements help Venmo stand out, which is why …

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