All companies or institutions tend to create an online platform to make their institution more known around the globe. And this has also taken a big step in the financial sector.
Most financial institutions now have an online platform, especially for banks, who no longer depend on the old traditional brick buildings for reach. And above that, other people have decided to create platforms that are uniquely online, without having a physical building where their customers should go for any issues.
These platforms are also known as online P2P, or Online banks, or money transfer apps. Some of the popular ones are paypal, Venmo, Cash App, Zelle, Wise, and many others. You might be wondering how they work.
Well, for today, we will put our main focus on Venmo and show you how Venmo works, and how you can use Venmo for the first time. This will guide you to know the main things to know about Venmo and how it works.
How do I Use Venmo for The First Time This Year?
Understanding Venmo
Well, first of all, Venmo is a mobile payment app, that was made or created under the PayPal family or group. It helps in the same aspect, that is, sending and receiving of money.
However, Venmo added a new feature (social media feature) which permits one to be able to chat with the person to send or receive the money from. Well, here are more things below to know about Venmo.
1. In Making Payments:
- Contacts: Venmo revolves around your contact list. You can find friends by username, phone number, or email address if they already have Venmo. You can also import contacts from your phone.
- Sending Money: Once you've found a friend on Venmo, you can easily send and receive money from each other.
- Requesting Money: Similarly, you can request money from friends by tapping "Pay or Request" and entering the desired amount. Add a description (optional) and tap "Request."
2. In Funding your Venmo Account:
Here, Venmo functions just like several othe money transfer app. You will have to link a payment method, whether bank account (checking or savings), credit/debit/prepaid card, or any other means you know to be able to easily send money to your account.
3. Receiving Money:
Money sent through Venmo goes directly to your Venmo account. You can then choose to transfer it to your linked bank account or use it for future Venmo transactions.
4. Social Features:
Unlike traditional money transfers, Venmo injects a bit of social interaction. When you send or receive money, you can add a short message or emoji to the transaction. However, the amount is always private.
How to Use Venmo for the First Time
You might be new to Venmo and asking yourself that how will you start using this platform? May be you where told how nice the app is, and you decided to download it and see how things go. Well, here is a walkthrough to get you started with Venmo. To get Started:
1. Download the App and Sign Up:
Head to the app store or the Play Store on your smartphone and download the Venmo app. It is available for download for both iOS and Android devices.
Open the app and choose to sign up. You can create an account using your phone number or email address. But it is more advisable to use your email address and then later on add your phone number to your account.
2. Verify Your Identity:
Venmo will send a verification code to your phone number or email (depending on the signup method you chose). Enter the code to verify your account. This is the OTP verification method to be sure of who is signing up with them.
3. Link Your Payment Method:
To send money using Venmo, you'll need to link a payment method. You can connect your bank account (checking or savings) or debit card. This payment method is to withdraw and to add funds to your account.
And an account without the payment method applied is an incomplete account and will not be able to work at it's maximum potential.
4. Find Friends or Add Contacts:
If you used your email to create your account, then this is the time to add your phone number. You are adding your phone number so that the Venmo app can scan your contact list and see who uses Venmo in your contact list.
Venmo allows you to pay friends directly. You can find friends by searching for their username, phone number, or email address if they already have Venmo. You can also import contacts from your phone's address book.
5. Send or Request Money:
Once you've found or added a friend, you can easily send or request money. To send money, you should;
- Tap the "Pay or Request" button.
- Then enter the amount you want to send.
- Choose your friend from your list of contacts and add a brief description of the payment (optional).
- Confirm the payment.
To request money, you should; How to use Venmo to receive Money;
- Tap the "Pay or Request" button
- Then enter the amount you want to request.
- Choose your friend from your contacts list and add a description (optional).
- Then tap on "Request" to make a request from your friend
Why you Shouldn't use Venmo
The same way Venmo is an amazing platform for sending and receiving money, Venmo is also know for some few setbacks. There are several reasons why someone might choose not to use Venmo. And they are:
- Privacy concerns: Venmo transactions are publicly visible by default, meaning anyone can see who you paid and for what.
- Limited consumer protections: Venmo is primarily intended for person-to-person payments, not for commercial transactions. This means that if you encounter a scammer or if someone doesn't deliver goods or services as promised, you may have limited recourse for recovering your money, unlike some other platforms like Paypal and Cash App.
- Potential security risks: While Venmo takes security measures, such as encryption, to protect users' financial information, it is still not foolproof. There have been instances of Venmo accounts being hacked or compromised, resulting in users losing money.
- Fees for certain transactions: While personal transactions on Venmo are typically free, there are fees associated with some types of transactions, such as sending money from a credit card or receiving payments for goods and services.
- Lack of customer support: Venmo has been known to have limited customer support options, which can be frustrating if you encounter issues or have questions about your account or transactions. This lack of reliable customer support may deter some users from using Venmo.
Ultimately, the decision of whether or not to use Venmo depends on your personal preferences and priorities. It is important to weigh the pros and cons and consider alternative payment methods that may better align with your needs.
Final Thoughts on How to Use Venmo for the First Time
Not everyone finds it easy to get started with a platform like Venmo. While some will find it easier and continue, others may find it more difficult. This post is for you, then, if that describes you.
You ought to understand the basics of Venmo and how it operates after reading this article. You should understand how to use Venmo to send and receive money by setting up an account and connecting it to other financial platforms (such as a bank account); Additionally, you should be aware of if Venmo is safe for you and whether you should utilize it at this time.
And with that, we will end this article, and if you feel like we have missed out on something, don't hesitate to hit the comment section and ask us any question of your choice, we will be available to assist you along your first steps with Venmo.