Venmo: What Is It and How Can It Benefit Your Small Business?
You may have heard many people using the term “I’ll Venmo you” and have no idea what they are talking about. You might be thinking What is a Venmo and how do I do it? In this article we will take a look at what Venmo is and how it can benefit you and your small business.
Venmo, a company started in 2009 and more recently acquired by PayPal in 2013, is a way to “Pay friends and family with a Venmo account using money you have in Venmo, or link your bank account or debit card quickly.” It’s a great way to almost instantly pay back your friends or roommates for heat or rent. But how can it be used to benefit small businesses?
Venmo used to be an app in which you could send money directly, person to person otherwise known as P2P. However, towards the end of 2017, Venmo started to roll out a new way to pay online. You can now use Venmo at over 2 million online retailers. This includes major retailers such as: Forever 21, Footlocker, J. Crew and many others. This created a new wave of online commerce. By using sites that already had PayPal set up on them, people were now able to accept Venmo payments via PayPal.
While PayPal is still one of the safest ways to transfer money online, Venmo employs the same safeguards that PayPal does, but allows customers to receive payments in an instant. It also provides an 'on the go' solution for many people who already have Venmo on their phones, millennials or Gen Z. By merging these two platforms, they are now able to reach a larger demographic.
What does this all mean for your small business? Venmo is an ever-growing app with more people and more money transfers and transactions happening daily, so it might be a smart move for you to get your business set up on Venmo. Having Venmo is beneficial because of its online usage, and if you’re an eCommerce, and have PayPal set up to receive or make payments, then clients should be able to pay with Venmo in addition to paying with PayPal. If there’s no PayPal set up, you can go through Venmo and quickly set up an account though them. Once that's completed, you'll be all set to accept Venmo as a form of payment. It may not mean more sales, but it’s still money at the end of the day. Older generations might be wary of this form of payment, especially if they’ve been hearing about how unstable Bitcoin is, but they can rest assured they are still able to use their card, or even try Venmo if they’d like.
Another point to stress: the speed, and ease of use of Venmo. Most people don’t like waiting around for their money, but with Venmo you can actively pay people back as fast as you can type out a text. Plus, if the people don't pay you back, you are able to give them a nudge in the app, and request a payment. This works the same for businesses, and freelancers.
Lastly, Venmo is safe. It's as safe as PayPal because it’s a subsidiary of PayPal and uses the same technology. Transferring money through your phone instead of swiping your card might seem odd, but there are other companies, like Apple Pay that are doing the exact same thing. I've used Venmo, and have never experienced a problem. Its quick, safe, and easy to use for not only customers, but businesses as well.
So, is Venmo right to you? You might not have the answer now, but if you feel that you are losing money due to people not being able to pay in alternative ways to cash or card, then this could be a great opportunity to explore. It might even be something to look into adding on your online store or brick-and-mortar location.
The world is changing and the way that people pay is too, so use this new technology to your advantage.