2Q26 Acceptance Tracker: Venmo‘s Attrition Rate Increases; Affirm, Klarna, & Google Pay See Strong Advances

Research evidence excerpt

2Q26 Acceptance Tracker: Venmo‘s Attrition Rate Increases; Affirm, Klarna, & Google Pay See Strong Advances

Update

July 10, 2026 08:36 AM GMT

Morgan Stanley & Co. LLCMPayments and Processing | North America James E Faucette

Equity Analyst

2Q26 Acceptance Tracker: James.Faucette@morganstanley.comMeryl R Thomas, CFA +1 212 296-5771

Research Associate

Meryl.Thomas@morganstanley.com +1 212 761-0774

Venmo's Attrition Rate Shefali Tamaskar

Shefali.Tamaskar@morganstanley.com +1 212 761-4948

Increases; Affirm, Klarna, & Michael N Infante

Michael.Infante@morganstanley.com +1 212 761-4631

Google Pay See Strong

Payments and Processing

North America

Industry View AttractiveAdvances

Venmo's higher churn suggests the button isn't driving

meaningful conversion, and we're monitoring PayPal's churn as

Shop Pay overtakes it as the button with least attrition. Google

& Shop Pay are seeing healthy gross adds and decreasing churn,

while Klarna & Affirm both saw strong quarterly adds.

Venmo (PYPL) saw just one net add, as gross churn continued to increase,

indicating the button isn't driving conversion at merchants. Venmo added 8 and

lost 7 merchants in 2Q, bringing Venmo's total to 89 merchants and keeping its

acceptance share at 19% by count (unchanged from 1Q25) and 8% by volume ex-

Amazon (also unchanged). As a reminder, 1Q26 marked the first time we tracked

higher merchant removals vs. additions for Venmo, with the Venmo button losing 1

net merchant in 1Q (added 4 and lost 5). We have previously called out Venmo's

relatively high levels of gross merchant churn, which returned to higher levels at

5.6% in 1Q and now 8% in 2Q, the highest among wallets we track. We think the

relatively high churn, especially vs. PayPal (historically below 0.5% churn on a