Nov 12, 2024 By Rick Novak
Venmo has evolved as one of the most widely used applications for sending money from one person to another. Iqram Ismail and Andrew Kortina founded Venmo. They were undergraduate classmates at the University of Pennsylvania. According to the story, the two became dissatisfied with the shortcomings of conventional point-of-sale software while assisting a buddy in opening a frozen yogurt shop.
They developed a working prototype for text-messaging money transfers before deciding to use smartphone apps instead. Users can transfer money to one another using a credit card, bank account, or Venmo balance with the Venmo app. Although PayPal owns the service, yet it differs from its peer-to-peer transfer service in a few ways. In this guide, we will learn how to use Venmo and how it compares to competitors.
So, how does Venmo work? To get started, you can download the Venmo app (Android and iOS) to your smartphone and create a free account. Additionally, you can create an account online at Venmo.com. Before you start, you must register using either your email or phone information or you can sign up using your Facebook account.
Then, you can link your bank accounts with the Venmo app as soon as your account is open. For money transfers, you can attach your credit card, debit card, or other bank account details. You can send money using your credit card, debit card, or bank account without verifying your ID.
However, you will need to verify your ID to use money from your Venmo balance (money that you have received via Venmo but haven't yet spent). You can then start receiving or sending money to your family or friends. Venmo app lets people can spend money from their Venmo balance with a free debit card that is available for optional use. Isnt it remarkable?
To send money to your family or friends, simply select a beneficiary in the Venmo app by entering their phone number or email address. Enter the amount of money you want to transfer and the source of the funds (your Venmo balance, bank account, or credit card). Later, Venmo deducts a certain amount of money from your money source and sends it to the recipient of your payment.
If the recipient doesn't already have a Venmo account, they must open one to accept the payment. They can withdraw the funds to their bank account once the money is deposited to their Venmo balance. Additionally, you can use Venmo to make online payments to a few stores, such as Grubhub, J. Crew, and other retailers that accept PayPal.
If someone is sending you money via Venmo, make sure they have your phone number, email address, or Venmo username. They set up payments on their device by selecting the payment amount and method in the Venmo app. Moreover, you can also search for a Venmo user by their username or real name using the Venmo app.
Later, choose them and "Request" a payment. Venmo subsequently asks the user to allow a transfer of funds from their funding account to your Venmo account after receiving a notification. Sending or receiving money requires you to write a note in the "What's it for?" area. If you'd like, you may even use emojis to send the same message.
Venmo has limitations when it comes to sending or receiving payments from your friends or clients:
Although Americans love Venmo, there are a few things Venmo should improve to provide users with a seamless experience. Here are a few pros and cons of Venmo.
So, how does Venmo compare to its competitors? Here is how Venmo compares with its competitors.
Here is how competitors compare to Venmo when it comes to transfer speed, fees, and other useful features.
Zelle is often compared with Venmo because both are efficient transfer services, and users ask which is safer: Zelle or Venmo. So, both are safe and provide unique facilities.
After learning how to use Venmo and how it compares to competitors, you might feel it is the best way to send and receive money. Venmo is extremely affordable unless you want to use credit cards to make payments. However, not all money transfer services even let you use a credit card, so it is useful to have that option in case you need it. When it comes to sending and receiving money from your mobile device, Venmo is a quick and simple option with low costs.