Money-sharing app Venmo has tapped into a sweet spot for Gen Z and Millennials. It combines an easy way to take control of one’s finances and a social media experience (complete with emojis) into one platform.
According to a recent study, Venmo’s millions of monthly users sent each other a combined $40 billion in 2017. But for many, it also induced FOMO (fear of missing out).
Generational Expert Matt Beaudreau Weighs In.
“It tracks really well with what we’re seeing on really any social platform—it’s all normal human behavior,” explained Matt Beaudreau, a Certified Speaker for The Center for Generational Kinetics.
Unsurprisingly to Beaudreau, some Venmo users reported social anxiety from checking the app and learning about gatherings they weren’t invited to. “You start to question your relationships,” Beaudreau said. “You start to get hurt by that.”
Why Has Venmo Become So Prevalent?
Paypal CEO Dan Schulman explained to CNBC that young consumers have embraced Venmo as a way to split purchases and keep a close eye on their finances.
“It’s very important to them if they have their own independence, and these apps like Venmo are incredibly powerful in helping and empowering them to take care of their financial health,” Schulman said.
This Phenomenon Isn’t New to Gen Z and Millennials.
Matt Beaudreau also explained that at one time or another, members of every other generation felt the same way when they perceived that their friends failed to include them in something. But social media, including Venmo, makes these outings and plans more visible in daily life.
“Human behavior hasn’t changed,” Beaudreau said. “We’re just being massively over-exposed.”
What can parents do to ensure their children aren’t swept up in the wave of FOMO that comes with seeing everything their peers are doing on social media? Beaudreau encourages parents to teach their children what social media actually shows us: a cultivated version of the truth.
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