Disclaimer: This post contains affiliate links in which I receive commissions. The reviews and opinions expressed in this article are my own.
In the past year, our lifestyles have taken a major shift in ways we didn’t quite imagine. Owing to the pandemic, the otherwise normal chores like going to the supermarket, working and earning, or even spending time with– all happened online.
While looking for new digital solutions, I stumbled upon Venmo which is a mobile payment application owned by PayPal. Through this mobile app, account holders can transfer and receive funds, get paid easily, and even socialize.
This digital wallet has a lot to offer. Keep reading and discover from this blog how Venmo works and how it can efficiently help us with payments and business transactions.
To have a quick overview of how to use Venmo, watch this YouTube video:
How Venmo Works
As a digital wallet, Venmo can be used to exchange money with other Venmo users. You have three sources of money when using Venmo:
- Venmo balance;
- A debit or credit card, or bank account; and
- Paychecks sent directly to Venmo accounts.
With a single click on your mobile app, you can send money to your friends. What’s more, you can type a message indicating what the payment was for! But first, you need to sign up!
Simple Account Set-up
Like any other mobile payment service application, you will need to sign-up to be Venmo’s account holder. You need to plugin the necessary personal details that will help Venmo recognize you as a legitimate user.
Anyone of legal age with a bank account, debit card, or credit card can sign-up for an account. Just download the Venmo app on our mobile phones or use the Venmo website.
Account verification can be easily done in the mobile app.
- Clicking the “☰” menu.
- Under this tab, tap “Settings.”
- Then choose “Identity Verification.”
Usually, this process only takes a few minutes.
However, in some cases, if the National Database fails to work, Venmo will then send the person a request for documentation, which will take 2-3 business days to process.
Budget-savvy Tips and Tricks
Account fees are important to consider when setting up an account. As per Venmo, it won’t cost a penny to set up one.
Also, there are no monthly fees when holding the account. Hence, instead of paying for an account, you can add the money to my Venmo.
Transferring money is very easy with this digital wallet. I did it through the following steps and was able to transfer funds as many times as I wish:
- Add a bank account
- Verify the account to ensure that money gets there
- Transfer funds and freely move money from Venmo to one’s bank account, and vice versa.
Here are the things you need to know when using our money in Venmo:
- It will not charge a fee for online purchases. You can buy as much as we want
- If you use your credit card to send money via Venmo, you will be charged a 3% fee.
- In this case, it’s better to use your Venmo balance, debit card, or bank account when spending or sending money. The reason is it’s free of charge.
Balance Management
Just like budgeting money, balance management is also important when using Venmo. The developers have design tools and mechanisms that will allow you to move, manage, and adjust your balance.
As I utilize this app, I will need to spend some dollars to enjoy its benefits.
To efficiently manage my balance, I considered some costs that I could incur to decide which method is less costly. When adding money to our account, we should take note that:
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- Venmo will charge 1% with a minimum of $5 fee if we add cash using check deposits, payroll, and government checks. There will be no charge if users’ checks cannot be added.
- Venmo will charge a 5% fee with a minimum fee of $5.00 if we add money using non-payroll and non-government checks. Likewise, transfers will be free of charge once checks are bouncing.
- If users send a payment via one’s business profile, Venmo will charge 1.9% and a $0.10 fee for the transaction.
- There are no charges for other ways of adding money to the account.
Quick Money Transfer
If I wish to transfer money from my Venmo account, I can do it for free through standard electronic withdrawal. Money, in this case, is available in 1 to 3 business days.
However, the money could be available in a few minutes if I use the instant transfer. Only it charges 1% with a minimum of $0.25 fee and a maximum of $10 fee.
Through Venmo’s quick money transfer feature, we can do more with our money sooner than later. Usually, banks need 1 to 2 business days to process money.
But with this digital wallet, we can have our hard-earned money as soon as Venmo receives it via direct deposit.
Investment in Cryptocurrencies with Venmo
I recently read the news regarding Venmo’s launching a new feature, which allows investments in cryptocurrencies.
I think that PayPal made a wise move to allow users to trade cryptocurrencies via Venmo. It increased the utility we can gain from this app!
Everyone can easily start a crypto journey through these three easy steps:
- Open the app and tap crypto from the menu.
- Start trading for as low as $1. What’s more, we can share our experience with the growing crypto community in Venmo!
- Keep going by buying and selling in just a few taps.
A cryptocurrency is modern virtual cash secured by cryptography. Numerous digital forms of money, such as Bitcoin and Ethereum, are decentralized networks dependent on blockchain innovation.
A characterizing highlight of cryptocurrencies is that they are generally uncontrolled by the central bank. Cryptocurrencies make it simpler to move reserves between two parties without a bank or credit card company.
In present-day digital currency systems, a user’s “wallet,” such as Venmo, has a public key that secures transfers. Private keys are then used to sign these transfers.
Blockchain is an established, shared ledger that accelerates tracking transactions and assets in a business operation. This technology is ideal for conveying data since it gives prompt and transparent details to account holders.
According to the news I have read, PayPal partnered with Paxos to focus on this new venture on the blockchain. Paxos is a blockchain infrastructure company that has previously served PayPal in its digital asset initiatives.
With this blockchain technology, I can testify that every user can gain greater confidence and new efficiencies with Venmo.
Venmo: An Excellent Business Tool
What could be more useful than a single app that allows us to do so much more? Aside from being a digital wallet, and an avenue for trading cryptocurrencies, Venmo is also an excellent business tool.
Without a sweat, entrepreneurs can make a business profile by doing the following steps:
- Click the profile picture in the Venmo app, and tap “Create a business profile.”
- Customize the profile by adding details about a product offering.
- Publish the profile and start interacting with customers!
- Gain a Business Spotlight
By making a business profile, Venmo users can provide customers an easy way to check out products. The profile picture, background photo, and important details can make the business noticeable in the market.
Furthermore, people can share feedback regarding their product offerings. If they do so, the business profile will appear more prominently in their feeds.
- Easy to Manage and Organize
I am amazed by how I can seamlessly switch from my personal profile to my business profile by using only one account. Indeed, Venmo will allow us to manage our business transactions from our personal ones separately.
Also, we can benefit from simple bookkeeping and easy gathering of customer insights.
- Secure and Touch-free Transactions
Venmo allows us to collect payments through transfers in the mobile app or through a unique QR code. Entrepreneurs can display this QR code in front of their store and let the customer checkout hassle-free.
- Establish an eCommerce for Free
Creating a business profile is free, and no one will be charged monthly fees no matter how much we earn. What’s more, it allows us to take advantage of the zero seller transaction fee for the first month of our business venture.
Moving forward, Venmo will get its share by charging as low as 1.9% and $0.10 for every transaction so that both ends will benefit!
Final Thoughts
Venmo is an excellent app for everyone who wishes to manage their transactions in one place efficiently. After setting up a profile, we can already transfer money, purchase online, receive salaries, and trade cryptocurrencies.
Also, it is a very useful tool to manage our business transactions. If anyone can prove me wrong, they can easily cancel their account via the website.
By doing so, these users will also be closing their business profiles. However, I bet every user can see how useful Venmo is and support my claim that it’s a practical application to have.
If you support me and like articles like this, please feel free to check out these links:
- How Does Venmo Make Money? A Review Of Services And Fee Types
- How Does Paypal Make Money? Revenue Strategy
- Which eCommerce Platform Is Best For Small Businesses?
Do you have any experience using the Venmo app? I’d love to know how you like it!
