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Their goal is to make payments simple and easy among friends and social circles. The perfect example is for instance solving the issue of splitting the bill when there is a group of friends in the restaurant.
Many people are wondering does venmo work internationally, because of the huge media popularity and lots of posts on the Internet about this financial app.
Unfortunately, both the sender and receiver of the payment needs to be physically in the USA.
Read here about Venmo International alternatives...
The mobile app has evolved into a small social media platform, where you can send money to your friends via text message. The main idea was to make handling the money among friends less awkward. If you owe some money to a friend because of a lunch or taxi bill, you can simply send them an emoji with the balance.
Recently, they have extended they services by introducing a MasterCard, which allows for a regular payments in the shops and ATM withdrawals.
Transferring money from and to the account depends on your payment method or bank. Usually, it takes up to 2 days to process it. There is also a feature of instant transfer, where you can quickly fill your account for a 1% fee.
It’s similar to PayPal, but scaled with the mind of young generation. They can share and like payments and purchases through a social feed. When the user makes a transaction it is shared without the amount on his news feed.
As an advantage, acts the fact that they don’t charge any additional fees for all of the basic features of the app. After you connect Venmo to your bank account, you can send money to your friends through the app.
There is a 3% fee for sending the money if you connect the app to your credit card. Or additional costs for withdrawing the money from ATMs with the MasterCard.
Many people are wondering, what are the differences between Venmo and PayPal. Well, first of all, it’s worth mentioning that PayPal has acquired Venmo. They explain that:
“It’s similar to PayPal, but is unique in that Venmo allows users to share and like payments and purchases through a social feed. The service is popular with the millennial generation.”
While PayPal is a powerful tool to handle your private and business transactions all over the world, Venmo is a scaled service focused on the social aspect and your friends network.
You can create an account on Venmo website or download iOS or Android app on your smartphone and do it from there.
As they want to encourage you to exchange payments with your relatives and friends, one of the convenient methods is to connect to the app through Facebook, so that you can have your friends list automatically connected. Alternatively you can open a regular account with an email address. Then you have to verify your phone number and connect a bank account or load the balance onto the account.
Obviously, the project claims to have a security level of professional banks and financial institutions. And, that personal and financial data are encrypted and protected on secure servers. However, there have been some controversies and doubts about their actual security measurements. It was discovered that they don’t comply with safety regulations and rules.
As there is a cancelation period of a transaction, there have been reports that some scammers are using it to avoid paying.
Security concerns arise, especially for the users, who connect their Venmo accounts directly to their bank accounts. There have been cases where the hacker gained access to the bank account through the app. Some users have allegedly lost up to $3,000.
They increased the amount of verification and notifications, so that the user is quickly informed about any suspicious payment activities or log-ins. Users are also encouraged to set up special PINs to increase the security.
There was a widely-commented The Guardian’s article, which investigated the Venmo privacy problems. One can read that:
“Anyone can track a Venmo user’s purchase history and glean a detailed profile – including their drug deals, eating habits and arguments – because the payment app lacks default privacy protections.”
They argue that even though most of the transaction data may seem unimportant, as they are only simple bills or groceries, it still gives out information on your daily habits, regular spendings, how you hang out with and your potential income and so on.
That’s why users are now encouraged to change their feed and transactions settings to private:
“Our users trust us with their money and personal information, and we take this responsibility and applicable privacy laws very seriously. Like on other social networks, Venmo users can choose what they want to share on the Venmo public feed.”
Venmo has quickly became the biggest thing among millenials, as it solves all of the everyday payment struggles. It handled $12 billion in transactions in the first quarter of 2018. Moreover, P2P transactions are a rapidly developing market, with estimated $156 Billion transactions in 2018. Venmo with their services are exploring a promising market, which may set out the standards for the future of finances.
You can read our users comments and reviews here and leave your own thoughts to help others find the best financial services and avoid potential scams!
Many people have no problems with the app and benefit from using it for they everyday payments:
“I've been using Venmo for 3 years now. I've used it as a way to pay rent, $1,300 a month to my landlord, in addition to sharing a dinner check or paying back a friend, etc. Haven't had a problem yet. knocks on wood” ~justinheyhi on Reddit
“Used it for 2 years. Works great if you trust the other party. Otherwise can be dangerous as one can chargeback and stuff pretty easily. But between friends and for small amounts it works like a charm.” ~shawn_sarmin on Reddit
However, there is also the other side of the story:
“Their customer service and accountability process is non-existent - I've filed a complaint regarding fraudulent charges and have waited over 9 days to receive any response from the team - which can only contact me through email and NO ONE in the customer service team can put me in direct contact with the task force. When I asked to speak to a supervisor I was left on hold for over 40 minutes only to be hung up on. Someone hacked my account and transferred funds, switched the email and password and Venmo failed to report any of this activity of suspicious. Horrible service, non-existent accountability and a total scam.” ~Claudia on ConsumerAffairs
“My funds are held up because of security flag however no one can remove it. They offer no explanation.” ~ writes Ivette on ConsumerAffairs
Most of the issues that people are reporting concern frozen funds and lack of communication with the customer support.
The support section is well designed and it's easy to find the needed information. You can send the message directly via platform regarding your issue. Unfortunately, many users report that it may be hard to solve an issue with Venmo Customer Support.
However, there is a very well-developed Help Center. It consists of many tutorials and articles, which may answer most of the questions and issues for the user.
All in all, despite potential controversies and privacy problems, Venmo is still doing very well in terms of small and everyday payments. The social aspect also acts as an advantage and encourages young people to use the App and share with friends. While it shouldn’t be a first choice for handling your finances, it can be a great choice to exchange spare money among friends and family. The app is well-designed and easy to use.
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