Venmo is a digital payment app that helps users transfer money between each other. It is a peer-to-peer communication app. Venmo allows the user to pay using the app or via a Venmo’s card
Venmo is mostly free but charges a little on transactions with business accounts as well as credit cards. Instant transfer, withdrawals, and affiliate commissions on cashback programs also help Venmo earn money.
Venmo was originally found in the year 2009, and its headquarters is located in New York. Venmo became a success in no time due to its unique peer-to-peer transaction system and millennials’ preferred interface.
Braintree first acquired the company in the year 2012 for a massive 26.2$ million. One year later, PayPal purchased Venmo from Braintree for 800$ million. Today, almost 52 million people are using Venmo’s App.
How Does It Work?
Venmo is a huge success among general users because of its social media-like interface and interaction mechanism.
Also, being a peer-to-peer P2P app, Venmo allows users to pay for products or services at selected merchants. Also, it brings a whole new concept of splitting the cost between friends while having dinner, and also a simple chat with each other is also supported at Venmo. This feature makes Venmo just like a social media application.
- The user needs to download the App.
- The app is available on both Apple and Android platforms.
- The user needs to register himself.
- The other user also needs to register after downloading the app for successful transactions.
- The users can chat like WhatsApp or Facebook messengers and even can send emojis that make it different than other apps.
- The app gets linked with the user’s bank account, or debit card, or credit card. This helps them in the transaction of money.
- Businesses can also integrate with the Venmo account and register as merchant accounts. These have different tariffs but quite helpful for young entrepreneurs and millennials.
Venmo allows the user to make payments at grocery stores, coffee shops and also for personal services.
Venmo’s Business Model and Framework
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 charge 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.
One of the strategic changes PayPal made after acquiring Venmo was to enhance the database. PayPal already had a huge list of users that were using the eBay platform alone, now with this, PayPal was able to prompt and promote the users to use both the platforms that have increased the potential to eBay.
Global Mission & Vision
Venmo’s Global mission and vision are to make transfers and transactions easy. The goal is to bring the money to the lower-income users and among all the audiences regardless of their social status.
Venmo and PayPal want to democratize the financial services so that they are not controlled by the marketing giants and the upper-class sitting on top of the policymaking.
Along with this, Venmo wants to make transactions a social behavior just like other social networks so that the transfers and transactions seem like fun rather than old conventional transfer methods, which seem a hectic job to do.
Venmo payment has become so advanced that with the new Venmo Master Debit card, the Venmo is literally inside your wallet. Venmo is almost everywhere, whether it’s transactions with friends and family or brands or businesses. Venmo seems to be everywhere.