Venmo Brokers 2021 - Which Brokers Accept Venmo?
Venmo is a mobile payment solution with an integrated social feed. The platform aims to make the transfer of payments between friends, family and businesses as seamless as possible. The app also supports cryptocurrency purchasing, selling, and trading. Find out all you need to know about how the online payment solution works here. We’ll cover daily transfer limits, how to buy Bitcoin, company history, reviews and rewards. Plus, we list the best trading brokers that accept Venmo deposits.
Note, while Venmo is offered at a limited number of brokers. PayPal is a suitable alternative and available at many leading brands.
What Is Venmo?
Established in 2009 from headquarters in New York by founders Andrew Kortina and Iqram Magdon-Ismail, the Venmo app was developed for fast, safe, and social payments between individuals. In 2012, the company integrated the social network feature and was bought by Braintree Payments for $26.2 million. Just a couple of years later, PayPal acquired Braintree for $800 million. Today, the company is run by CEO Dan Schulman and has a valuation of $38 billion with a user base of 70 million. Venmo’s expected net worth valuation is predicted to rise aligned with PayPal’s share price, with Venmo’s 2021 revenue forecasted at $900 million. The company is traded under the stock symbol PYPL.
Venmo’s explosive growth has largely been driven by millennials who were attracted by the simplicity of its features and the social aspect of the app. The platform is also growing in popularity amongst traders owing to its cryptocurrency buying options.
Venmo is available on both Android (APK) and iOS (iPhone) devices.
Venmo is a peer-to-peer payment app that lets users pay friends, family, and trusted merchants without large fees. The format is similar to Monzo, Revolut, or CashApp. The clear branding and simple navigation handle at the bottom of each page make the app highly user-friendly on both iPhone or Android devices. So, how does it work and what does it offer?
- Social feed – Split and share payments within peer-to-peer groups
- Navigation – Seamless ability to toggle between social feed, personal profile, and Venmo products
- Cards – Venmo credit and debit cardholders can manage cards in one easy-to-find page. Rewards and offers are also available
- Crypto – Explore the world of digital currency, view trends in real-time, hold 4 different cryptocurrencies
- Personal Feed – Complete view of wallet with activity, balance, and transactions. Manage personal settings and custom feeds
Venmo Trustpilot reviews in 2021, are generally positive. Rated 4.3/5 on the Google Play app store, and it’s not hard to see why. In general, it is a safe app that is free to use and offers a payment solution with the bonus of a crypto platform. Read on for more details about Venmo security.
Crypto On Venmo
The app is designed for those new to cryptocurrency trading. Clients can buy, sell and hold digital currencies in the in-built Venmo wallet from just $1. Currently, only 4 coins are supported; Bitcoin, Ethereum, Litecoin, or Bitcoin Cash.
Users can hold digital currency within a Venmo app, transfer to other accounts internally or to external wallets. Note, there is a $20,000 crypto purchase weekly limit and a $50,000 annual limit. The app does not support crypto as a funding source for payments or to pay or send money. Peer-to-peer crypto transactions are not supported, these must be converted back to USD for transfer.
Venmo charges a spread on the market price of the US Dollar and the crypto asset. Any additional fees will be disclosed before clients complete a transaction. Remember, crypto transactions are irreversible but assets can be sold if no longer required.
Venmo also offers in-app educational content, YouTube video postings, and news articles within the crypto section of the app.
Venmo’s pricing structure is flexible and accommodating, putting it ahead of many competitors. Accounts are free to set up and there are no monthly charges.
Spending Or Sending Money
Users will be charged a 3% transfer fee when sending or receiving money using a credit card. But online purchases and transfers made using your Venmo balance, debit card or via your bank are free.
Buying Or Selling Crypto
There are fees when buying or selling cryptocurrencies e.g Bitcoin and Litecoin. $0.50 is the minimum charge on purchases between $1,000 – $24.99. For larger purchases, a percentage fee will be taken, up to 2.3%.
Adding Funds To An Account
For most payment options, it is free to deposit. This includes direct deposits, receiving a merchant refund, transferring from a bank account and when receiving funds from other Venmo users. When using checks, there is a 5% fee for non-government checks and 1% is charged on those that are government-backed. The minimum fee is $5.
Credit cards incur a 3 per cent fee. Third-party charges may however apply for all funding methods. A $400 withdrawal limit per day is applicable with the Venmo MasterCard debit card. A joint bank account may be used to deposit funds. You cannot currently link a PayPal or Zelle cash app account to Venmo. No details are provided on processing times however card payments often provide instant account transfer funding and withdrawals. Bank wire transfers are generally subject to a 1-3 business day pending time. Note that brokers may have their own deposit and withdrawal charges.
Account holders can also explore a range of free additional features including real-time alerts and yearly account statements.
Venmo offers a Standard and Instant transfer option. A Standard transfer will take between 1-3 business days and does not carry a fee. The Instant transfer feature will make a direct deposit within 30 minutes and has a fee of 1% up to $10. All transfers are reviewed which can sometimes extend transfer times. Trading brokers may also have their own processing times.
If a user has selected a Standard transfer it cannot be upgraded to an Instant transfer. If you would like to cancel a transfer, contact the Venmo customer support team.
The support team can be reached online via the Venmo website or you can call on their telephone number – (855) 812-4430. Alternatively, Venmo runs popular YouTube, Twitter and LinkedIn accounts which host a wealth of information and can help with questions. Other options include:
- Email – firstname.lastname@example.org
- Chatbot – Bottom right of the webpage
- Mobile app chat – Available Monday to Friday 7 AM to 1 AM (ET) and Saturday to Sunday 9 AM to 11 PM (ET)
Traders should feel assured of the safety protocols implemented by Venmo.
As a member of the PayPal family, transactions are protected with the trusted monitoring and encryption technology. Users’ financial information is hidden and cannot be shared during a payment transfer. Plaid powers the app behind the scenes to protect users’ data through third-party securities reviews, 2-factor authentication (2FA) implementation, cloud infrastructure, and robust monitoring. Active accounts are 3d secure.
Venmo is a money transfer business regulated by the United States Treasury Department. Under this authorisation, customers may be required to comply with identity verification requirements under the Know Your Customer (KYC) compliance, to complete account set up. This may include providing proof of residency with zip code and providing a copy of a personal ID such as a driving license. Note your max transfer limit will be $299.99 until your identity is confirmed.
However, scammers have on a number of occasions been able to bypass the company’s security measures. Account holders have reported thefts of up to $3,000. After gaining access to a Venmo account, scammers can easily transfer funds into a bank account. As a general rule, anything that poses as free money should be avoided. Venmo also does not offer a buyer or seller protection plan which may leave users vulnerable.
There are a number of simple things users can do to help protect themselves:
- Only exchange funds with names or brokers you trust
- Don’t store large sums of money in your online account
- Set your account settings to private and opt-out of Venmo’s public social feed
How To Get Started
Get started with Venmo in just a few simple steps:
- Download the Venmo app
- Sign-up and verify your identity
- Add a credit or debit card
- Find your friends or broker
- Send and receive money
There are three ways to fund your account, also known as your funding source: using your Venmo balance, a credit/debit card or a US bank account. Venmo does let you add multiple cards (up to four), including prepaid or gift cards from American Express. Venmo does not accept users under the age of 18.
When you have created your Venmo account, the p2p maximum transfer limit is $299.99 per week. Once your identity has been verified, your rolling weekly (7 days) transfer limit is $4,999.99 whilst your sending limit is $2,999.99 (¢3,000.00). Payments for goods and services are limited to 30 transactions per day, up to $2,000.
Note, online brokers may also have their own deposit and withdrawal limits. Check terms and conditions before making a payment.
The company runs a rewards scheme called Venmo offers, which provides cashback on purchases. To register your interest, head to the Offers section of the app. It’s generally quick and easy to sign-up and get started accumulating reward points. Keep an eye on the latest bonus offers when opening a live account. Referral invitation links are often published, usually with a free $5 reward added to live accounts.
Pros Of Trading With Venmo
Venmo is hugely popular with some of the app’s best features including:
- Straightforward to split payments between people
- Interactive community chat to discuss payments with users
- Payments can be made to those that don’t have the Venmo app
- Payments are free to make – Venmo doesn’t charge users to send or receive money
- There is a ‘trust’ feature that enables auto-payment for recurring expenses such as rent
- There is a rewards system that allows users to earn cashback on selected purchases
Cons Of Trading With Venmo
Whilst Venmo has a lot to offer, there are some drawbacks to the platform:
- You must be at least 18 years of age to use the service
- You must have a mobile phone registered in the US
- Payments are capped at $4,999.99 per week for both sending and receiving
- Payments are primarily available for personal use. Limited business payments are integrated into the platform
- Both the sender and receiver have to live in the US which means that international payments are not possible
- The Venmo groups feature is no longer available at the login stage
Venmo Vs Competitors
How does Venmo compare vs Zelle, PayPal or other cash apps? Zelle moves money directly between bank accounts using email addresses or phone numbers. Both platforms are free, with some exceptions, and neither are offered beyond the US. The key difference is that Zelle does not have the social element to its platform.
In the UK, Monzo and Revolut are Venmo’s closest competitors. Whilst both are great mobile banking options, neither quite offer the social aspect that Venmo does. However, they also aren’t tarnished with the same security concerns.
Is Venmo A Good Choice For Traders?
Venmo is a popular social mobile payment platform and it’s not hard to see why. Users can make quick and easy transfers whilst engaging with the interactive social feed.
The biggest limitation of the app is that currently, it is not available outside of the US. It would be good to see it expand globally, much like PayPal has. The other key drawback is the security concerns. Multiple users have reported scams with some losing thousands of dollars. Whilst there are precautions you can take, the impetus must be placed on the company to improve in this area. Venmo is particularly interesting in respect to cryptocurrencies and it will be interesting to see where the company takes this feature, especially for active traders.
Is Venmo Available Internationally?
Like Zelle, Venmo is available to US citizens only. Users must have a US registered bank account and phone number in order to use its services. Venmo does not work in the UK and international transfers are not permitted. Equivalent cash, or money apps, do exist in England however, Monzo and Revolut are good alternatives.
Is Venmo Owned By PayPal?
Venmo was founded in 2010. Two years later it was acquired by Braintree and then later by PayPal in 2013, meaning PayPal now controls all service settings and updates. Today, Venmo is a PayPal company with an estimated net worth of ¢38 billion.
Why Isn’t My Venmo Account Working?
If you are experiencing any issues with your Venmo account, contact the customer support team. They can help with a range of issues, including 403, 404 and 406 error messages, if it keeps crashing or declining, your account settings are incompatible, or your bank couldn’t be added.
How do You Transfer Venmo Money?
To make a Venmo transfer, you will need to download the mobile app, verify your details and add a funding source to the account. Once you’ve registered, follow the in-app instructions to make a deposit or transfer.
Is Venmo Free?
Venmo does not charge to send or receive money. There is however a 3% fee on transfers made by credit card. It is free to open an account and there are no monthly charges. Trading brokers may also have their own transfer charges though deposits are typically free at big brands.
Is Venmo Anonymous?
Although personal details are kept private, there is no way to send someone money anonymously on the app.