Venmo, a digital money transfer service run by PayPal, is changing the financial transaction game. The app, which can be easily accessed on your mobile device, strives to eliminate “I owe you” and “I don’t have cash on me, so I’ll have to buy it later.” Using the service is simple, free, and can make your life a little bit easier.
For the iGeneration, “Venmo” has become a verb and a term used in everyday conversation. This application allows users to pay friends and bill them too. Owe a friend five dollars for pizza last night? Venmo her. Waiting to get reimbursed for the money you fronted at happy hour last week? Venmo request him.
Venmo is hassle-free, immediate, and truly the way of the future. The service is designed to be used by anyone and everyone, as long as you have a smartphone. While I’ve been an active Venmo user for three years, my father just created an account just last month. In an age where cash is slowly becoming passé, Venmo is the answer to this inevitable change.
How does Venmo work?
Fortunately, Venmo developers made this app as simple as possible. Start off by downloading the free app for either Android or iPhone and create an account. From there, you have a few options. First, you could connect your Venmo account with your bank account. This will allow you to pay friends using money directly from your bank account. You can also transfer any received payments directly to your bank account. Second, you can upload your credit card information. However, a standard 3% fee applies to all credit card transactions, so I would advise against this option. Lastly, you can wait until you receive payments and acquire a Venmo balance before you make any payments.
You are also able to add a note to every payment or request you make. These notes describe exactly what the specific transaction is about, so you and other Venmo users can be on the same page. Notes also add a little personalization to each transaction. You can say thank you to a friend for their generosity or use a little humor to make someone laugh.
What is a Venmo balance?
When you receive a payment from a friend, the money from that payment is stored in your Venmo account, creating a Venmo balance, or a Venmo bank, if you will. When you go to pay a friend, money to complete that transaction will automatically withdraw from your Venmo balance, as long as there is enough money there to satisfy the amount paid. If not, the full amount will be taken from your bank account or charged on your credit card, depending on what you chose to link to your Venmo account.
Can I transfer my Venmo balance to my bank account?
Yes! You can transfer any amount of your Venmo balance to your bank account at any time. Just keep in mind that it will probably take a business day or two to see funds in your account.
Is Venmo safe?
Venmo uses an encryption to protect all of your personal information. The app tracks all transactions and scans for any unauthorized activity. Venmo was created for you to make payments with friends and people you trust. The company advises you avoid making transactions with unknown individuals.
Of course, accidents happen, and Venmo is prepared for when they do. If you paid the wrong person, try sending him or her a request for the same charge and explain the situation in a note. If that doesn’t work, contact Venmo for assistance.
Who are Venmo’s competitors?
While Venmo is arguably the most popular peer-to-peer payment application, the company doesn’t stand alone in the market.
The creators of Snapchat were hoping to build off of their successful social media application through the launch of Snapcash. Users are able to send and receive money through their Snapchat accounts with no fees.
Google Wallet is practically the same as Venmo, just not as common. This allows you to send and receive payments directly from your mobile device or smartphone.
In the early stages of Venmo, the popular platform PayPal was a competitor. However, all of that changed in 2013 when PayPal acquired the Venmo.
With Venmo, and other digital payment services, you don’t have to stress about forgetting your wallet at home or not having enough cash to split the bill. Tell us how you’re adding “Venmo” to your vocabulary list and Ask A Pup if you have any questions about this new technology.
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