PayPal Holdings Inc. (PYPL) - Get Report said Tuesday, Oct. 17, that more than two million U.S. retailers will this week be able to accept payments through the company's Venmo mobile app.

The move is part of PayPal's plan to capitalize on the popularity of its Venmo app with the younger set. The person-to-person payments app, which PayPal acquired in 2013, processed $8 billion in payments during the second quarter of this year.

PayPal is leveraging the social feed aspect of Venmo to appeal to merchants, publicizing the app as an "entirely new way for merchants to increase awareness and open new purchase opportunities," the company said in a statement. "Merchants can reach a new audience of shoppers, many whom skew millennial and engage with Venmo multiple times throughout the day."

Venmo users will be able to use their app balance or linked cards and bank accounts to shop on mobile sites of merchants who accept payments through PayPal. Some of those merchants include Foot Locker Inc. (FL) - Get Report and Lululemon Athletica Inc. (LULU) - Get Report .

PayPal stock was up 0.8% to $67.85 in premarket trading Tuesday. Shares have rocketed higher about 70% since the start of the year.

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