How does Venmo work? Explained

The key success for Venmo throughout its journey has been its feel structure. The low usage fee makes the platform the best option of all. PayPal, after acquiring Venmo, doesn’t change the fee structure much to continue the loyalty of the customers and facilitate the old customers.

Venmo allows the retail business to pay for the merchandise and items through simple clicks via smartphones rather than the old hectic ways of transferring money. The cashless system makes it very easier for people to transact money without involving third parties. The structure of Venmo has been designed in such a manner that it is a peer-to-peer payment application system.

The app is an alternative to wiring transfers, ATM cash and delivery services, and processing checks. The payment is transferred instantly, and both the sender and receiver are notified. Venmo users also have the facility to pay their utility bills instantly and easily. There is absolutely no sign-up fee for Venmo, and the standard transaction fee is as low as 3 %. The sign-up rate is huge.

Looking for a guide that helps you use Venmo?

So, you probably have heard about Venmo from one of your friends and have searched it on the internet to get to this article. Well, congratulations, you are in the right place because here we’ll explain all the basics of the Venmo App and how it works.

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1) Download the application

Because it’s a mobile app so you should have one android phone or Apple phone with you. In the case of an android phone, go to play store and search Venmo and download the app. In the case of an iPhone user, go to the Apple store and download the Venmo app by searching it.

2) Sign Up for an Account

The next step after downloading the app is to sign up for your new account and then verify that account with an email ID or phone number. The sign-up is completely free, and that is why there are millions of Venmo user’s accounts.

3) Link Bank account/ Credit Card or Debit Card

After you sign up, you will have to enter the bank account details, credit card details, or debit card details. In the case of the Bank account and Debit card, the transactions will cost no feel to the user unless he has registered his business with Venmo.

After adding the account details or debit card details, Venmo will now show you a success message, and you are ready to make transactions. In the case of the credit card, the account will be made similarly, but the only difference is the charge of 3$ on each transaction done via the credit card.

4) Search/Invite/Add Friends

So now you have signed up the account, got it verified and linked your payment system with your mobile application.

Now you’ll have to search or invite friends. The friends who are already on Venmo will be shown to you as suggestions, and you can add them or connect them.

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You can also search them through names—the friends who are not at Venmo. You will have to send them the invite via a social platform or phone number. This will allow the other user to get a notification that you are on Venmo now, and he can join the platform.

5) Send and Receive Money

After you have your circle and friends at the application and all of them, have made the accounts. Now it is effortless to transfer money. You can send money to friends, known acquaintances, and to other random people also whom you don’t know. It is always suggested to share the transactions with someone you might know.

After the payment transaction is done, it will be shown to the home news feed of all other friends that Friend A has transferred some Funds to friend B. All in a friendly manner like the social media platform.

The final process is when you have paid. It takes around 2 days for Venmo to completely transfer the transaction between the accounts.

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