Author: Mike Bowen
Thirteen years ago, Venmo entered the peer-to-peer (P2P) payment market. Venmo concentrated on giving its consumers a user-friendly, safe, and cost-effective solution during this time. It can compete with any rivals and keep gaining positive feedback.
Who Invented Venmo
The application was invented by students who wanted a simple way to transfer money between themself. After four years, PayPal bought the payment system.
Due to its authority in the financial market, PayPal immediately gained popularity among consumers and was extensively embraced by businesses, thanks to the application (Venmo) simplicity and creativity.
How Venmo Works
Understanding how Venmo works is quite simple. Any beginner can use and navigate through the application. To use the app, all you need is a U.S. mobile phone and be a U.S resident.
After inputting your data, you can link your bank account, credit card, or debit card for payment use. Furthermore, you may make payments using Venmo straight from your bank’s application, so there is no need to fund your bank.
How To Send Money With Venmo
You can send money using your linked credit card. You can also utilize whatever money you have in your Venmo account.
To send money via Venmo, follow this guide:
- Tap “Pay or Request” at the bottom of the app screen.
- Type in the person’s name, phone number, email, or username. If they are not a Venmo user, they must first create an account.
- Type in the amount you want to transfer. Add a comment about what it is for.
- Then, select “Pay.”
- The money will then appear in the recipient’s account.
How To Receive Money Through Venmo
You may use your Venmo balance to make purchases. You can also transfer funds to your bank account or an approved card or leave them in your Venmo wallet. The money does not need to be spent; there are two options if you decide to relocate it.
- Standard Transfers
Standard transactions are sent using an ACH payment directly to your bank account. Although they frequently take less time than that, they can take up to three days. These transfers are free of charge.
- Instant Transfers
You can make a quick transfer to a qualifying debit card if you need the money faster. Usually, it takes only a few minutes to get your money. The price for an immediate transfer is 1.75% of the transfer value, or a minimum of $0.25, as of May 23, 2022.
Venmo Fees
Venmo is free, but there are optional fees that can be eliminated.
For instance, making a quick transfer to your bank using Venmo attracts a 1.75% charge. By selecting a regular transfer, you can avoid paying this fee. Even though it takes a bit longer, it helps you save some cash.
Is Venmo Safe?
Venmo is relatively safe. It was designed to be used to transmit money to someone you know and has security on par with banks and other financial organizations. It poses a low danger if used as indicated.
The software supports two-factor authentication. To prevent someone else from accessing your account, use a pin and touch ID or face ID authentication.
Top Features
- Paying easily and quickly
The simplicity of Venmo is its selling point. After downloading it, you may immediately begin transferring or receiving money. Venmo provides an on-screen calculation that simplifies sharing costs when you give or request for money.
- Free
Venmo does not charge recurring costs (monthly or yearly fees). Sending money from a bank account, debit card, or Venmo balance is free. All payment applications charge an average 3% fee for credit card transactions.
- Venmo provides debit and a credit card
- Venmo credit cards could be attractive to old users. Your Venmo balance is connected to the Venmo Debit Card. It doesn’t have a monthly fee, and some shops offer cash back.
- Transactions are broken down into spending categories. You receive 3% cash back on your main purchasing category each month, 2% cash back on your second-highest spending category, and 1% cash back on all other purchases.
Conclusion
Venmo is a peer-to-peer payment application specially made for sending money to friends and family. Using Venmo is free and it can be easily connected to an existing bank account, debit or credit card.