This article is completely about HOW DOES VENMO MAKE MONEY.Do you forget to carry money or ATM every time you go out? Venmo solves your problem. Venmo is a mobile payment service that allows money transfer to each other. Venmo is called a digital Wallet. It is a payment gateway that allows customers to make payments and transfer money via a mobile device. Venmo was founded by Andrew Kortina and Iqram Magdon. It handled around 6.8 billion dollars in transactions in Q1 of 2017 which is almost double than the previous year. It is owned by PayPal.
Features of Venmo:
- Transfer money— Money can be transferred using the phone number, email id or even username.
- Split Bills— If you and your friends need to share hotels bills, you can split bills by Venmo.
- Track Payments— You can set notification settings and messages will be sent to track your payments.
- Use of Emoji— Transfer of money between friends can be indicated with Emoji’s like the payment is for dinner, beer and so many.
- Spelling checks— It has a new feature, even if you enter to friends name wrongly, it will suggest you the correct one.
- Synchronizing contacts— All your contacts from phone, email and other apps can be synchronized and can use to transfer money.
- Free to use— PayPal charges money from the credit or debit card, but Venmo is absolutely free of cost and does not charge money for the transfer.
- Time— Venmo takes around 2-3 business days to transfer So if you sent money and want to cancel it, you can do that.
- PIN— You can set a secure PIN to lock your App so that unauthorized user can’t use it.
- Advertisement Free— This makes Venmo a unique feature. All the money transfer apps make money by the advertisements. This makes the app really irritating when you use. Venmo is completely different, it is advertisement free.
Are you secured using Venmo:
Venmo does not offer Two-factor Authentication. It is not secure to use. Some hacks are reported in which thousands of dollars lost. It is better to visit Venmo’s Security Page before you start using Venmo. It helps in setting your password and PIN securely.
How DOES Venmo Makes money:
Venmo does not charge any money from the users when they transfer money. Here comes the doubt, how does Venmo make money without charging the users. Let us see how it is doing that.
- Merchant fees–When you pay money at the coffee shops, restaurants and much more using Venmo service, Venmo charges them a little fee by which it makes money. When you order food using Venmo, it will charge merchant fees along with the delivery fees.
- Credit Card fees–Venmo does not charge when you use a debit card. When you use a credit card for the transactions, it will ensure a fee of 3%. Whether you use a credit card for the transfer, or to use the restaurants, coffee shops, food trucks.
Venmo currently uses only these two ways as the source of revenue. This may be the small amount you think, but billions of users make the amount really bigger.