How Does Venmo Make Money? Here Are 8 Ways

Did you know Venmo comes from the Latin word vendere, which means “to sell” – or that it was once a music start-up where you could text bands to receive MP3s via email?

Yet those details, interesting as they might be, aren’t what we will discuss today. Instead, we’ll look at other sides to Venmo that could save you sizeable sums of money as you continue using the app.

Founded in 2009 by Andrew Kortina and Iqram Magdon-Ismail, Venmo is a leading U.S. mobile payment app. It lets people aged 18 and over send each other money for free.

What Is Venmo?

Now we know a little bit about Venmo, let’s dive into eight ways Venmo makes money. Keep these sources of revenue in mind when you’re using this money-making app. Then, whether you’re an individual or a business owner, you can use this knowledge to decrease unnecessary Venmo expenses.

How Does Venmo Make Money?

As we’ve seen, you can send money, receive money, and make standard payments using Venmo at no cost. However, that changes when you use a credit card rather than your debit card or checking account.

1. Credit Card Purchase

2. Pay-With-Venmo Transactions Venmo offers people a quick, easy way to pay for products and services. But did you know that the vendor (i.e., the business you’re buying from) has to pay a fee to process each purchase?

Let’s say somebody sends money to your Venmo account that you wish to transfer to your bank account. Thanks to the Instant Transfer option, you can do precisely that and have access to those funds within 30 minutes.

3. Instant Transfer

4. Credit Card Interest & Fee Credit cards are one option when you need quick access to money you don’t already have. The trouble comes when you can’t repay the money and fall foul of their notoriously expensive interest rates and late fees.

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