JoomPay, a new company offering a service comparable to Venmo – a popular platform owned by PayPal in the United States – is preparing for a European launch following its approval for a Luxembourg Electronic Money Institution (EMI) license. This application enables users to transfer and request funds from anyone immediately and without fees. The expression “Venmo me” is widely recognized in the U.S. as a convenient way to divide expenses, such as restaurant bills. While Venmo enjoys widespread adoption within the U.S., it is currently unavailable in Europe, despite the presence of numerous other innovative mobile person-to-person transfer services like Revolut, N26, Monese and Monzo. Registration for the app’s beta program is currently open for both iOS and Android devices.

Europe is at the forefront of the global instant payments sector, with a projected worldwide transaction volume of $18 trillion by 2025, a substantial increase from the $3 trillion recorded in 2020 – representing growth exceeding 500%. Western Europe, alongside the impact of COVID-19, is now the primary force behind this advancement and is expected to represent 38% of the total value of instant payment transactions by 2025. Although Europe currently lacks straightforward peer-to-peer payment options similar to those found in the U.S. with Venmo or Square Cash App, several challenger banks have emerged to offer comparable functionalities. JoomPay aims to function as an intermediary, bridging the gap between these diverse banking infrastructures.

JoomPay was created as a separate entity by the shopping application Joom, which has been downloaded 150 million times across Europe, to address this need. The application allows individuals to send and receive money from any other person, irrespective of whether they are JoomPay users, requiring only their email address or phone number. JoomPay can be linked to existing debit or credit cards, or directly to a bank account. Furthermore, it provides users with a European IBAN and the option of a complimentary JoomPay card offering cashback rewards and bonuses.

Yuri Alekseev, the CEO and co-founder of JoomPay, stated: “The onset of COVID-19 has led to a noticeable reduction in cash transactions. People are finding it more difficult to meet in person but still have a need to exchange money, and we provide a practical solution.”

JoomPay faces potential challenges in gaining market share. Its primary competitors within Europe include established companies such as TransferWise, Paysend, and, notably, PayPal itself.