When brands become verbs informally adopted by the english language, it is a good sign that the company has made it big. Need an answer to something? Google it! Would you like to place a video-call to your friend? Skype them! Looking to edit something out of a photo? Photoshop it!
You get the point.
When it comes to transferring money between people, you may have heard the term Venmo used as a verb: “I’ll pay it up front, and you can Venmo me later.” Popular among millennials and growing rapidly, Paypal-owned Venmo is quickly becoming the go-to mobile app in this age of transferring money from one person to another digitally. Venmo users transferred $8 billion in just one quarter this year, which was twice as much as the same quarter the previous year.
But not everyone uses Venmo, and many people are still unfamiliar with it. The purpose of this blog is to talk about what it is and how it can make your life a little more convenient.
What is it?
In a nutshell, Venmo is a mobile application owned by Paypal. It allows users to digitally transfer money to other users on the Venmo platform without paying any fees (unless using a credit card as the funding source).
Why is it convenient?
Venmo is a convenient, cashless way to send money to individuals. It allows users to easily split a restaurant bill, go in with others on a gift for someone, pay the babysitter or reimburse a family member.
Anytime you owe someone money, you simply pull out your phone, open the Venmo app, choose who to send money to and send it within seconds.
Fees
Venmo only charges fees on users who use a credit card as their funding source (3% per transaction). For transactions with bank accounts, debit cards, or if you are paying with a balance built up within Venmo, no charges apply.
Security
In this day in age, one can never be too careful. Equifax, Yahoo, Sony and Netflix can tell you that.
As far as security, the argument could be made that Venmo is actually safer than traditional ways of transferring money. Paying someone with cash or a check runs the risk of money being stolen or lost. With Venmo, a thief would not only need to steal your phone, they would also need to know how to hack into your phone which can be password protected. Even then, Venmo allows people who have lost their phone the ability to log in from another device and revoke access to the lost or stolen phone.
Venmo does not offer buyer or seller protection so it is highly recommended that users only send and receive money to and from individuals who they trust.
Venmo uses encryption to protect your security and privacy which prevents unauthorized users from gaining access to your sensitive data — much like any other secured website which hosts sensitive data. In this digital age, there is always a security concern when using your credit or bank card online, but with proper ID theft protection and sticking with transactions between trusted individuals, confidence and peace of mind can be achieved. It should be emphasized that Venmo comes with the reputation of Paypal which, to date, has an excellent track record in online security.
How to set it up?
Venmo is rather easy to set up, one simply needs to download the app, sign up for an account, choose a funding source and walk through the verification process. You can link a debit or credit card, or even a direct checking account. For security purposes, we recommend a card.
Sent or received payments are transferred through Venmo instantly. When a user sends you money, you can either leave it in your Venmo account, or transfer it to your bank. If you transfer it before 7pm EST, the deposit will typically hit your bank account the following business day.
It really is that easy!
We hope you’ve found this article useful. Happy Venmo-ing!