Ever used Venmo? Yes? Then you might know how it works. Never used it? You might have at least heard of it through your friends or somewhere else. Still no? Don’t worry, keep reading and stick till the end of the article and you will find a lot of things about Venmo on your own through our article. By the way, who owns Venmo??
Let’s find out.
To begin with, Venmo is a mobile app. What kind of app? The one that enables you to have quick and simple transfers of money. Where can you install it? You can install the app through Apple App Store or Google Play Store. Who is Venmo for? Does it have a limit on the transactions? If yes, what is the limit? Is it Free? How does it work? Is it Safe? Trustworthy?
Whoa! A lot of questions? But these are the common questions we see anywhere we talk about some banking app or some app or company where our money is involved. We understand your concerns and are here to help you. Let us clear these doubts for you.
Like we mentioned before, Venmo is a mobile application through which you can transfer money quickly and without much effort. The application was launched in the year 2009, when its main target was the transactions between friends, like the splitting of bills for rent, movies, dinner, etc.
The application is only available for users of the United States. Venmo is a digital payment medium that largely is operated through mobile phones.
Since it’s a mobile-only app, you will have to install the app through the app store or play store. Following that, you need to create a Venmo account, Login to your account. To initiate transactions to other accounts you need to link your US-bank account, debit card or credit card. Currently, Venmo is not supporting any other accounts outside the United States.
Venmo acts as an intermediary and helps you transfer the money from your Venmo account to the account of another person. The money will be deducted from your Venmo accounts if there are sufficient funds if not the full amount will be transferred through the payment method you prefer (Credit Card, Debit Card, Bank account ). The app doesn’t charge any transaction fee if you pay through the bank account or the debit card, but you will be charged a 3% transaction fee if you complete the transaction using a credit card, which originates from the company itself.
You can also transfer money from your Venmo account to other bank accounts within 30 minutes using Venmo’s instant transfer service which will cost you a 1% transaction fee of the amount you wish to transfer. The minimum transaction fee for this service is $0.25 and the maximum transaction fee is $10. Otherwise, you can still transfer the money within 1-3 business days without any transaction fees.
Coming to the limits on the transactions that you make through Venmo, a new and unverified user on Venmo can make transactions up to $299.99 per week. After you provide information like Zip Code, Social Security Number, etc. the limit spikes up to $4999.99 per week and you can also spend $2000 on payments to the authorized vendors on Venmo that sums up the total limit per week to $6999.99. There are also limits on how much you can transfer to a bank account using Venmo. For an unverified user, the limit is $999.99, after the user verifies their identity the limit reaches $19,999 per week. However, the maximum amount you can send in one transaction is $2999.99.
Is Venmo Safe?
Yes, it is! The app takes extra security measures to protect your account data. It needs the user to enter their security pin to make each transaction on the app. In any case, you suspect that someone else is accessing your account you can log out from the device using the Venmo official website. Like Venmo itself mentions that the app was made for transactions between friends, it is safe if you use the app for transactions to or from the people you know.
Venmo wasn’t as safe as it is today, it had to face the FTC regarding its false claims about offering bank-level security to its users. The company later fixed the issues and now it is safe to use for all its users. However, being a bit precautious saves you any unwanted and unprecedented troubles.
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Who owns Venmo?
Iqram Magdon- Ismail and Andrew Kortina, two friends that met as freshman roommates at the University of Pennsylvania, are the founders of Venmo. They got the inspiration to create Venmo in the process of helping a friend start a yogurt shop and got finalized when Iqram Magdon-Ismail forgot his wallet when he went on a trip to visit Andrew Kortina. Whatever are the situations and events that inspired them, they finally came to a conclusion and developed the Venmo app and released it in 2009. 3 years later in 2012, the Braintree company acquired Venmo for the sum of $26.2 million.
The following year, i.e. in the December of 2013, PayPal acquired Braintree in an all-cash deal of $800 million. Venmo being a part of Braintree then, became a subsidiary of PayPal following the deal. With PayPal’s ownership of Venmo, a lot of additional features were added to the platform even though they share the same competitive space.
Wrapping up
Venmo is a mobile payment application that makes it easy for you to transfer funds to your friends. The app also lets you pay the funds with a message attached which makes the transactions more fun. The company is owned by PayPal since 2013 and is making the transactions easy, safe and fun alongside its owner PayPal. Hope this article has provided you with the information you were looking for. For more such articles, business models, and much more visit the Zeen website.
