What is Venmo and How to Use It
Founded in 2009 as a payment system which could be operated through text messages, Venmo is a peer-to-peer digital wallet which permits you to pay as well as request money from your friends. Owned by PayPal, it is a mobile payment service. Using this mobile service, you can not only send money to friends and family but also companies. What’s more cool about Venmo is that after you lend money to your friends you can even keep track of how they are spending their funds, thanks to the social feed that’s embedded into the app. Venom comes in very handy in situations when you have gone out with your friends over lunch, and you have to go through the ordeal of splitting the bill or when you have to share half your room rent with your friends.
How does Venmo work?
Well, Venmo has two sides- the technical side and the social side. First, let us elaborate on the technical side.
First of all, you have to download the app in your iOS or Android phone so that you can easily access the app and make payments or transfer money on-the-go. Then, like all other digital wallets, you have to sign up for Venmo either through your mail address or simply linking it with your Facebook account. The next step is really easy- you have to search for your friends and family on Venmo and connect with them. Once you have saved their contacts, you can collect or borrow money from them. Also, you can send them money by linking your bank account or debit card with Venmo.
Once your account is set up, it is very simple to send money to people. Just choose the person from your contact list and send them money by putting the amount along with a note (which often mentions the reason) and that’s it! As soon as you send money, your recipient will receive a receipt of the payment almost instantly. You can also link your bank account and transfer money into your account if someone has sent you money over Venmo.
Making and receiving payments on Venmo can be a bit tricky. Since Venmo was developed as a peer-to-peer mobile payment service, it was mostly used to borrow or send money back and forth between friends. So, when you send money to your friend, the money first goes into his or her’s Venmo account before entering the bank. So, it acts as a middleman. When you send money to a friend, your Venmo balance is reduced while the Venmo balance of your friend is raised as a sign of your payment. However, what’s interesting, the money is not deducted from your bank account until your friend transfers his or her Venmo balance to their bank account. This process allows frequent sharing of money without affecting your bank balance.
What’s unique about Venmo which makes it different from other mobile payment services is its social side. Since its always embarrassing to ask money from your friends, Venmo has turned the asking-out process into an emoji-based conversation where instead of blatantly demanding your share of the money you can simply include a note along with an emoji to make your friends understand that they owe money to you.
How can I fund Venmo?
Venmo offers a plethora of funding opportunities, and the simplest way is to get Venmo payments from your friends or family. Your Venmo balance will stay as long as you want to keep it.
To conclude, with its fantastic speed of transferring money and funny social side, Venmo is one of the most popular P2P payment applications, and it is here to stay.