Understanding Venmo: Social and Versatile
If you have children or grandchildren, you have almost certainly heard them mention Venmo. It has become incredibly popular for its ease of use and, for better or worse, its social features. Venmo is owned by PayPal, but it has a very different feel and is best used for different kinds of payments.
How Does Venmo Work?
Unlike Zelle, Venmo is a standalone app that you download from your smartphone’s app store (the Apple App Store for iPhones or the Google Play Store for Android phones). When you create an account, you get a “Venmo balance” inside the app. This is an important difference from Zelle.
When someone sends you money on Venmo, it first lands in your Venmo balance. It does not go directly to your bank account. From there, you have two choices to get your money: a standard transfer to your linked bank account, which is free but typically takes one to three business days, or an instant transfer, which moves the money to your bank or debit card in about 30 minutes but comes with a small fee (usually around 1.75% of the amount).
To send money, you link a funding source like your bank account, a debit card, or a credit card. Sending money from your bank account, debit card, or Venmo balance is free. However, if you choose to send money using a credit card, Venmo will charge you a 3% fee.
Venmo for Older Adults: A Focus on Privacy
Venmo’s unique feature is its social feed. By default, when you make a payment, it can appear in a feed for your friends to see, usually with just the names and a short note (the amount is always private). For many older adults, this feature is not only unnecessary but also a privacy concern.
The good news is that you have complete control over this. One of the very first things you should do after setting up Venmo is to change your privacy settings. In the app’s settings menu, you can navigate to “Privacy” and set your default audience to “Private.” This ensures that all of your future payments will be visible only to you and the person you are paying. You can also change past transactions to be private. Taking this simple step allows you to use Venmo’s convenience without broadcasting your financial activity.
When Is Venmo a Good Choice?
Venmo shines in social situations. It’s perfect for splitting a restaurant bill with a group of friends, paying your neighbor back for groceries, or sending a quick $20 to your grandson for his birthday. It’s widely used by younger generations, so it’s often the easiest way to exchange money with them. It is also increasingly accepted by small businesses, like vendors at a farmers market or a craft fair.
Getting Started with Venmo
First, you’ll need a smartphone. Go to your phone’s app store and search for “Venmo.” Download the official app (it has a blue background with a white “V”).
Open the app and follow the prompts to sign up with your name, email address, and phone number. You will need to create a secure password. Then, you will link a payment method. Linking your bank account is often the most cost-effective choice. Venmo will verify your account by making two small deposits of a few cents, which you will then confirm in the app.
And remember, right after you link your bank, your next stop should be the Settings menu to set your privacy to “Private.” Just like with Zelle, it is wise to only use Venmo with people you know and trust. While it does offer some purchase protection for business transactions, it is not as robust as PayPal’s, and it’s primarily designed for payments between friends.
