For regular consumers or "end-users" (like you and your friends), Venmo only charges that 3% fee if you are using a credit card for your transactions.Īdditionally, as one of the main revenue-generating aspects of Venmo's business model, the app charges businesses a 2.9% fee when consumers use the app to pay. Venmo's business model is a peer-to-peer money transaction service that allows users to link up their payment methods and share transactions within their network. This is one of the principle ways Venmo makes money off of customers since the app doesn't currently charge interest on funds. If you are using your bank account or debit card to connect to Venmo, your transactions are free - but, if you are using a credit card or are a business using Venmo, you will have to pay a 3% fee of whatever the total value of the transaction is. In fact, Venmo users like Daniella Joy, who declined to give a last name, told NBC News earlier this year that the site has morphed into a sort of social site.īut, even given its popularity, how does Venmo still make money despite a largely free service? How Does Venmo Make Money?Īlthough Venmo is free to use and download, the app mostly makes its money off of transaction fees. While the money transferring service may seem to be all about the cold, hard cash (or, digital receipts anyway), many Venmo users have reported using the app for other means. Still, is Venmo actually a form of social media? User experience may suggest so. Class A Report - all of which have or are currently developing commerce capabilities. Report, Apple undefined and Square ( SQ) - Get Block Inc. In fact, Venmo may soon find itself in competition with the likes of Facebook Having a social media-like feed showing public transactions with messages that vary from a simple emoji to full sentences has certainly changed the money app game.Īnd, what's more - some of the FANG giants are noticing. However, there are small transaction fees for sending money with a credit card.Īs of the app's third quarter in 2018, Venmo has facilitated over $17 billion in transactions. In order to send money for free, users must connect their bank account to the app.
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