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In-Car Commerce Startup Cargo Inevitably Adds Venmo for Payments

Jake MartinbyJake Martin
November 16, 2018
in Payments
Reading Time: 2 mins read
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We’ve all been there. It’s midday, you’re in between meetings, you’re craving a bag of candy or a shot of one of those super-charged, “coffee-based” energy drinks to push through the afternoon, but you’re caught in traffic in your rideshare and short on time.

Or perhaps not. But when you need that quick fix on the go, there’s mobile snack company Cargo Systems, Inc.

The New York City-based startup announced this week it’s teaming up with another millennial favorite, PayPal-owned Venmo, to integrate the peer-to-peer payment option into the Cargo platform. Venmo will now be offered as a seamless payment option to complete in-car transactions for snacks, drinks, and other convenience items.

“Integrating Venmo into Cargo makes the platform even more friendly to a generation of consumers that are increasingly going cashless and rely on rideshare services as a primary means of transportation,” a release from Cargo said. “They will now be able to pay with their Venmo balance, linked bank account, credit card or debit card.”

Cargo’s boxes are in about 13,000 rideshare vehicles in 10 cities and participating drivers have earned over $2 million in supplemental income over the past year, according to the company. Venmo is now available as a payment option in New York City, Chicago, Boston, Dallas, D.C., Baltimore, Los Angeles, and San Francisco.

Earlier this year, Venmo began working with merchants including GrubHub and Uber and e-commerce platform Shopify to let consumers use Venmo as a payment option. All the deals the company is making are starting to show in the numbers.

Venmo saw its total payment volume increase by 78% year over year to $16.7 billion in 3Q18, according to PayPal’s latest earnings report in October. It processed about $54 billion over the previous year.

Dan Schulman, CEO of PayPal, had said in a call with analysts that he was “especially pleased with the strong overall momentum” around Venmo. He said Pay with Venmo’s monthly active users increased about 185% in September versus August. Across the Uber and Uber Eats apps, he said they saw more than 300% month-over-month volume growth.

In case you need another sign Venmo is taking the mobile payments world by storm, BigCommerce, a Goldman Sachs-backed e-commerce platform, announced this week it’s adding support for Venmo (and Mastercard’s Masterpass) payments. The goal is to avoid shopcart abandonment.

“When it comes to the last mile of checkout, merchants cannot afford to risk losing the sale because they don’t offer the payment method that a given customer prefers,” Jimmy Duvall, chief product officer at BigCommerce, said in a release. “Especially during the holiday rush, there’s no margin for error or omission. We want our merchants to be able to concentrate on their products, brand and broader shopper experience, knowing that payments will be flexible, seamless and reliable.”

Tags: eCommerceExclusiveGoldman SachsMastercardMasterPassmobile paymentsPayPalPremiumShopifyUberVenmo
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