Today’s internet-driven society is mobile and digital. Hard cash is gone, but digital payments are in. And with the recent global pandemic, concerns about cash hygiene are growing. This trend is expected to continue.
Bank cards are becoming more complicated and risky as scammers and hackers make credit and debit card companies vulnerable to fraud and theft.
Digital payment services make it easier than ever to send and receive money using your smartphone. Digital payments have been a long-standing advocate for millennials. The market is saturated with so many P2P payment apps that it can be difficult to find the right one.
Venmo is a mobile app that allows you to make quick digital payments. We’re going to examine Venmo in order to answer the question: What exactly is Venmo?
Ready? Let’s get started.
What is Venmo? How does it work?
Venmo was launched in 2009 as a startup. It is a peer to peer payment platform that is owned by PayPal, a well-respected financial institution. Venmo lets users send and receive money. This handy app for smartphones allows you to request, send and receive money from any Venmo user who has a Venmo Account. At the time of writing Venmo is only available to US residents.
Venmo has been accepted by over two million brick and mortar as well as online merchants. Wow! This number is a testament to Venmo’s popularity here in America. Venmo can also be used to request and send money from family and friends.
Are you a frequent diner at a restaurant or movie theater and have been left with the difficult task of paying your family or friends back? Oder asking your friends to reimburse you for the tab at the bar.
Venmo is a great option for you. Venmo makes it easy to split any payment, including rent, dinner bills and cab fares. It solves the awkward social situations and complicated maths that come with money-sharing.
Venmo also has a unique feature: A social media network. You can interact and connect with your friends, and keep up with them via a newsfeed.
It also displays transaction history between you, your friends, and the entire transaction history. This is an optional feature. You can choose to turn off broadcasting transactions.
It is easy to find Venmo users by their username, phone number or FAC. Then you can start sending money or asking for it.
Venmo is a powerful payment platform that offers so many amazing features. It’s not fun to give money. Venmo allows users to jazz up their transactions by using emojis.
Next time you pay for a glass of wine, make a Venmo payment and include a wine glass emoticon. This is a playful gesture.
How does Venmo work?
Venmo’s business model makes it a virtual fiscal intermediary.
It sounds complicated, right?
Let’s take a look at it.
Venmo can be described as the intermediary between the sender and recipient’s bank accounts. Venmo is what ensures that the transaction between the parties goes smoothly.
Venmo users have the ability to instantly start exchanging funds. To get started, there are a few things you need to do:
- Sign up for Venmo first. You can either do it through Venmo’s site or install the Venmo App on your phone.
- Now you can link your Venmo account with your bank, debit, or credit card accounts.
- Choose a funding source from one of your Venmo balances, linked cards, or accounts.
- You are now ready to request or pay money from other Venmo users.
- Send money by adding a recipient, balance, note and optional emoji.
- You have two options when you receive payment via Venmo: you can either save the money in your Venmo Account for future purchases, or you can transfer the entire amount directly to your bank account. You have the option to choose.
It’s so simple!
It’s important to note that Venmo works on both mobile and also allows for payments via Siri voice command and iMessage. You can view Venmo transactions by going to the app or signing in through Venmo’s website. You cannot make, request, or receive payments via the desktop website.
Is Venmo Safe?
Venmo and other P2P payment apps such as Venmo can be used safely if the sender or receiver of the money is someone you are familiar with. However, internet apps can be vulnerable to security breaches so it is important that they have the highest level of protection.
Venmo uses data encryption technology in order to protect users from unauthorized transactions. To reduce fraud, you can log off the Venmo app’s desktop site if you lose your phone.
It also stores user information on secure servers. To access your mobile app, you can also set up a pin code.
But there is a catch…
It’s true that Venmo provides 100% protection against unauthorized transactions, but it has some limitations.
Unauthorized transactions can be described as those ‘that were not authorized and that did no benefit you’.
- If you have any questions about the amount that you sent/the company has debited.
- If you have received a payment but the amount that was deposited to your account is incorrect,
- You should not display a transaction that isn’t correct on your statement.
- If the company does not do the math
You must report any unauthorized transaction within 60 calendar days of the date it appears in your account to be eligible for 100% protection. Venmo recommends that you regularly review your statements and promptly report any unauthorised transactions.
To prevent security breaches, we recommend that you take the following precautionary steps:
- You shouldn’t keep large amounts of money in your Venmo Account.
- Transfer funds instantly to linked bank accounts
- Venmo is only for people you trust and know.
- Venmo’s default account setting is “public”, which allows the app to display your transactions on its public feed. Venmo’s social media network can be used to hide transaction history. Change your privacy settings to “private” to do this.
What Does Venmo Cost You?
Venmo’s standard services can be used for free by most users. You can send money to friends and family using your debit or checking card. There is a 3% processing charge for credit card transactions.
Venmo vs. other P2P payment networks
We’ve now covered the basics of Venmo’s offerings and their operation. Let’s compare Venmo to its competitors.
Venmo vs. PayPal
You’ll have guessed by now, if you read the entire review from the beginning that Venmo is owned by PayPal.
You might wonder why PayPal was added to the list.
Venmo is operated by PayPal, but there are some differences.
PayPal transfers money in a similar way to other financial institutions. The funds will be taken from your bank account or debit card, or linked to your PayPal account. You can also pay using your PayPal balance, similar to Venmo. PayPal is available worldwide. PayPal offers buyers protection when they do business with independent sellers and merchants.
Fees PayPal charges a transaction charge of 2.9% and $0.30 for debit and credit card transactions in the United States. The cost of sending money out of the country may be higher. PayPal charges $0.25 per instant transfer to eligible accounts, just like Venmo.
Network reach Venmo cannot be used outside the United States. However, PayPal has a global network that can be used worldwide.
Payment types PayPal and Venmo have the same payment options: bank account, debit or credit card, or the app’s balance.
Speed PayPal and Venmo have similar transfer speeds. Regular ACH transfers from your Venmo balance or PayPal account can take anywhere from one to three business days. For some accounts, there’s an option to make a 30-minute transfer immediately.
Safety The main difference between PayPal & Venmo lies in the Buyer and Seller Protection offered by PayPal. PayPal allows users to file complaints if there is a problem with products purchased or sold by independent sellers.
Venmo vs. Apple Pay
Apple Pay lets Apple users send and receive money through an app. Only compatible with the Apple Watch, iPhone, iPad, and Mac (iOS 11.2 or higher). Venmo may be required if you are Team Android with your friends.
Apple Pay, like Venmo is accepted by many retailers. Apple Pay users can also make payments using their mobile devices, linking their debit and credit cards. To ensure security, all payments are validated with a passcode or Face ID.
Fees – Apple Pay doesn’t charge you for debit card usage. If the funds are drawn from your credit card, however, you will be charged a 3 percent surcharge
Network Reach Originally launched in the United States of America, Apple Pay has since expanded its reach to include the United Kingdom, Australia and Canada. This is Apple for you.
Payment Types Apple Pay supports many international payment options, including Mastercard (including Maestro), Visa and Electron as well as American Express and V Pay. This includes country-specific payment schemes, such as Australia’s EFTPOS and China’s UnionPay. You can send money only via SMS in the U.S.
Speed– Just like Venmo, money received in Apple Pay is transferred to your in-app account, which can then transfer to your bank account. This can take up three days.
Safety Apple Pay offers better security than Venmo. Two-factor authentication is a tokenized method of transactions, data security and privacy.
Venmo vs. Google Pay
Google Pay ranks among the top (and most affordable) P2P apps. It combines the best features of Android Pay and Google Wallet into one place. This app makes it easy to send money to family and friends. To get started, you will need to search for the person using their name, email address or phone number.
Fees Google Pay does not charge fees for bank transactions or debit cards.
Network reach– Google Pay is now available in 30 countries as of 2020.
Payment types Only bank accounts or debit cards can be used with Google Pay. Google Pay cannot be used with credit cards, PayPal accounts and prepaid cards.
Speed Google Pay allows you to send and receive money in minutes. This is similar to Venmo’s instant transfer feature. It could take up 24 hours depending on the bank. Bank transfers can take up three business days.
Safety – Google Pay provides 24/7 fraud monitoring that ensures 100% coverage for any verified or unauthorized transactions. Unauthorized purchases must be reported within 120 days.
Venmo vs. Revolut
Revolut has over 10,000,000 users in Europe. It is a digital banking and currency exchange company that facilitates international spending and transfers at the most competitive exchange rates. You can also use their money transfer services to your business and personal customers.
Revolut is available in both the Apple and Google Play app store.
Fees Opening an account is free, as are money transfers in the same currency. International transactions are subject to the regular wire transfer rates. SWIFT is subject to a fee.
Network Reach – Revolut is available in Switzerland and Australia, as well as in all EEA countries and the United States.
Payment types You can use bank accounts and debit and credit cards as well as Apple Pay.
Speed It can take anywhere from 1-5 days to receive funds, depending on which currency you choose and the type of transfer.
Safety – Revolut’s anti-fraud software uses machine learning algorithms in order to detect suspicious transactions. You can quickly freeze or unfreeze your card if it is lost.
We’ll end this review with some commonly asked questions about Venmo.
Are you required to have a bank account in order to use Venmo
To transfer money, you will need to link your bank account. You don’t need to have a bank account in order to transfer money. However, you can keep your funds as your Venmo balance.
What is Venmo’s payment policy?
It is possible to link your bank account or credit card or debit card to your account. Then search for the recipient by email address or telephone number. To receive the money, they will need to create a Venmo Account. If the receiver refuses to accept the payment, you can cancel it.
Is Venmo charged a monthly subscription fee?
Most of the app is free to use. There are two main Venmo fees:
- Credit card payments are subject to a 3% transaction fee. Authorized merchant purchases are exempt from this fee.
- Instant transfers: Minimum 25c to maximum 1% transaction. These transfers are delivered in under 30 minutes.
This is it for Venmo fees!
What is Venmo’s method of verifying my identity?
Venmo will ask for basic information such as your legal name and date of birth to verify your identity. If necessary, they may request additional information such as:
- U.S. passport
- Driver license
- U.S. government-issued ID
- DHS card
- Tribal ID card
Are you ready to start using Venmo?
We hope you have found the answer to your question about Venmo.
Venmo has a lot of benefits for those who know how to use their smartphone to handle all types of transactions. The app is simple to use and allows for fast payments in almost any scenario.
Venmo can be used to pay friends and family. It’s great for paying bills or buying coffee or a drink while on the move. It’s intuitive and social.
If you are more privacy-conscious, you can adjust the visibility of your transactions to suit your preference.