With the advent of technology and internet connectivity, money transfer has also become more straightforward and effortless. There are many platforms available in the digital market that makes our everyday money transaction easier. Among such platforms, one is Venmo. Venmo refers to a digital wallet with peer to peer (p2p) transactions. This application makes money trades more comfortable for everyone, thereby creating an integrated social network.
What is Venmo?
Venmo was developed as an American transferable payment service launched in 2009 and held by PayPal from 2012. This platform was basically sought by friends and close ones for splitting bills in different scenarios like in a dinner or movie. Account-holders can pay money by simply using a mobile application, although they have to be the residents of the United States. It permits you to request money from friends and pay. It's yet the most accessible and widespread mode to transact money which has been widely recognized all over the United States.
The firm addressed $159 billion in transactions in 2020, which clearly remarks the high usage. So, there is no doubt that Venmo has evolved into an economical medium that you may need as a spare to a standard bank account.
How does Venmo App Work?
After downloading the Venmo application in your handset, open an account. Then link your bank account, debit card, and credit card with the Venmo account. Users can immediately start sending and receiving money. Now let's look at the ways of how the Venmo app actually works.
- The users of Venmo can request and send money by clicking the pay or request option. Then putting the mail id and phone number, you can simply transact the money. If you are the one accepting the money, you can either hold the funds in your credit or directly move it into your attached bank account.
- Venmo comes with a Venmo debit card and a credit card, and you can earn cash at an ATM by using your Venmo account.
- You can operate Venmo to pay out online bills at Amazon and any platform that accepts PayPal. You can also pay in IRL at CVS pharmacies by scanning a QR code.
- Venmo is usable to cash a check whenever you want by putting up a direct deposit.
- You can easily purchase and trade crypto, all by operating the Venmo application. Venmo also keeps you updated on the price alerts for Ethereum, Bitcoin, Litecoin and Bitcoin Cash.
- Register for direct deposit so that your paycheck can reflect directly to your Venmo account. It happens two days before your regular payday.
- You can simply scan the QR code of any Venmo user and pay him.
How does Venmo make money?
Venmo makes money by utilizing its different features like Pay With Venmo, interchange and withdrawal fees, Instant Transfers etc. They charge a certain amount of money for each of these services. Also, they earn from the affiliate panels of the cashback program proposed for debit cardholders.
Pay With Venmo
The feature called 'pay with Venmo' permits users to make investments at particular vendor partners employing their Venmo accounts. Partners, for example, Forever21, Urban Outfitters etc. Venom charges 1.9% and $0.10% for each transaction with any of these partners.
Users of Venmo can utilize the instant transfer feature. They can directly transfer money from their Venmo account to their main bank account. Venmo charges 1.5% on each amount transferred through this feature.
Interchange & Withdrawal Fees
Venmo offers its own credit cards to the users, which one can use to make payments by utilizing their Venmo balance. And for this service, they assign the vendor interchange fees of an amount of $2.50 for the withdrawal fee.
To sum up, Venom has become one of the most popular money transferring app in the United States with a total of 70 million users. It's the easiest and effortless way to send and receive money.