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Venmo Surges Ahead as Cash App Struggles in Fintech Race

Fintech and Financial Services

Business Honor
05 May, 2025

Venmo gains users and revenue, while Cash App faces growth issues and investor disappointment.

Venmo is gaining users and making more money, while Cash App is facing challenges. This week, the parent businesses of Block for Cash App and PayPal for Venmo released their financial results, and the difference was evident.

PayPal maintained a positive outlook and exceeded earnings forecasts. Venmo's earnings increased by 20% over the previous year. According to PayPal, more consumers are utilizing Venmo's checkout, fast transfer, and debit card services. They also attracted 2 million new PayPal debit card users and Venmo users. Debit card payments on Venmo rose by over 60%, and more people are using Venmo each month.

Alex Chriss, the CEO of PayPal, stressed the importance of Venmo in his plan to bring the company back to life. He noted that the company has increased its focus and investment in Venmo, and the positive results of that effort are beginning to show. Meanwhile, Cash App didn’t perform as well. Block’s revenue missed expectations, and its stock dropped 20% after the report. Gross profit from Cash App went up 10%, reaching $1.38 billion, but it wasn't enough to satisfy investors.

Block CEO Jack Dorsey admitted they weren’t focused enough on making Cash App better. He said some users still don’t think of it as a real bank because it can feel limited. The company is now promoting Cash App Borrow, a loan feature approved by regulators. Dorsey said they want to grow their network and keep users engaged. But first, they need to improve the core part of Cash App in sending and receiving money. The competition between Venmo and Cash App shows how important it is to turn users into long-term, paying customers in the fintech world.