What is Venmo meaning? A lot of people have been hearing the word Venmo but they don’t really know what it means. Venmo has been around for quite some time now and yet most people don’t even know about it. It is a subsidiary of PayPal since 2013. Venmo is more like social media that lets you send funds with ease.
This is a peer-to-peer payment system that originated from PayPal. It is used for transferring cash from the comfort of your mobile device. Members of Venmo are able to send easily from the comfort of their mobile devices. With Venmo, money can easily be sent from your bank or your credit/debit card to another user. Venmo is basically used for the sales of merchandise at retail establishments. This platform was introduced in 2009 by Andrew Kortina and Iqram Magdon-Ismail of the University of Pennsylvania freshmen. Braintree later purchased this service in 2012 and was acquired by PayPal in 2013.
How Venmo Makes Money
Most people do not know how Venmo makes money. For this reason, they don’t trust this company. Well, here are some key facts on how Venmo makes money.
- Sending money using Venmo comes with a typical 3% fee, but this company waives that expense when the transaction is funded together with your Venmo balance, checking or bank account or debit card.
- There is a third fee that’s not waived when sending money from a credit or debit card. This fee basically originates from the credit or debit card companies; Venmo passes the expense along.
- When withdrawing from Venmo, Venmo deducts 1% of the transfer amount for fast Transfers of money out of Venmo, with a minimum of 25 cents and a max of $10.
- Venmo is accepted as a means of payment at almost 2 million merchants and online stores. employing a smart payment button and Venmo personalized debit card, Venmo charges those merchants a 2.9% plus a 30-cent transaction fee.
- Venmo justifies this rate with access to a highly desirable consumer segment and highly visible social media.
Technical Side of Venmo
Venmo is really easy. It works like PayPal. By linking your bank account, debit, or credit card, you can exchange funds with anyone. Funds that are sent on Venmo are either stored on the platform for later use or cashed to a local bank account, the decision all depends on the user. Cashing funds from Venmo to a bank account usually takes a few days to process.
You should know that when you send money to your friend on Venmo, it doesn’t go directly to the person’s bank account. It first goes to the person’s Venmo account. It can then be cashed into a local bank account later on.