Who Owns Venmo? 

Who Owns Venmo? – Venmo is a mobile payment service founded in 2009 by Andrew Kortina and Iqram Magdon-Ismali and owned by PayPal since 2012.

With over 65 million users, this mobile payment app is renowned for its role in cashless money exchange among peers. 

Venmo allows users to send and receive money quickly and describes its service as making sending money “safe, simple and social”. 

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Overview Of Venmo

Venmo is a peer-to-peer payment app that enables users to share and make payments with friends and family for a variety of services. 

When you send money using your Venmo balance, the fees are waived. Although the service is free, a 3% fee applies to credit cards which help the company generate revenues. 

The payment service is aimed at friends and family residing in the United States who wish to split bills like for movies, dinner, rent, event tickets, etc. 

It also allows users to make purchases via the mobile app, online, or in person. Venmo is part of PayPal’s larger family of brands. 

Since 2002, PayPal has acquired several brands and these include Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, Happy Returns by PayPal, Chargehound, Paidy, and Simility. 

The company helps merchants and consumers connect, transact and complete payments in person or online. In 2021, Venmo handled $230 billion in transactions and generated $850 million in revenue.

On August 16, 2012, Braintree acquired Venmo and PayPal acquired Braintree in 2013 for $26.2 million, indirectly buying Venmo. 

PayPal generates funds primarily by processing customer transactions on the payments Platform and from other value-added services. 

The revenue streams are divided into transaction revenues based on the volume of activity or total payments volume and value-added services such as interest and fees earned on loans and interests receivable. 

In 2017, the company generated over $13 billion in net revenues and almost $1.8 billion in net income. 

Who Is Venmo Best For? 

This mobile payment app is designed to be social and customer-friendly. Do you need to pay for a friend’s restaurant bill or do you need to split the rent payment with your roommate? 

Venmo was designed to be a quick, seamless way to make these transactions. Some small businesses also make use of the app to receive payments. 

Beyond sharing or splitting bills, Venmo also functions in other ways. With Venmo, you can; 

  1. Make purchases with Venmo’s Mastercard debit card anywhere in the United States where Mastercard is accepted
  2. Make payments for purchases through apps and mobile websites from authorized Venmo partners
  3. Use an in-store QR code to purchase with Venmo
  4. Cash certain checks after verifying your identity by applying for a Venmo debit card or setting up direct deposit.
  5. Receive price alerts about specific cryptocurrencies including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash that you can buy, sell, or hold through Venmo. 
  6. Sign up for a direct deposit for your paycheck to go directly into your Venmo account, up to two days earlier than your usual payday.

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How Does Venmo Work? 

Venmo is a cash-free way of sending money. It lets you connect your bank account, credit card, or debit card and then use the app to make payments or send money and transfer money back to your external accounts. 

If you want, you can keep money in Venmo as part of your Venmo Balance that you can spend or send. 

Venmo also allows users to sign up for a direct deposit to have their paycheck go straight into their Venmo account, up to two days earlier than their usual payday. 

On the condition that you have purchased cryptocurrency or added money to your Venmo account via direct deposit or remote check capture, your Venmo balance is eligible for pass-through FDIC insurance through Venmo’s partner banks; Wes Fargo Ban and The Bancorp Bank.

To use Venmo, follow these simple steps:

  1. Set up your Venmo account.
  2. Choose a funding source by linking your bank account, or credit card, or using your Venmo balance.
  3. Request money or pay others with your Venmo account.
  4. Add a recipient, a balance, and a note.
  5. Send to the recipient.
  6. Transfer funds to your bank account or leave them in your Venmo account for future purchases.

Just like many other mobile payment apps, Venmo has weekly transaction limits for person-to-person payments, merchant payments, and debit card purchases. 

The maximum weekly spending limit for person-to-person payments weekly is $4,999.99 and $6,999.99 for authorized merchant payments and Venmo Mastercard debit card purchases. 

Pros Of Using Venmo

  1. Venmo is super easy and fast to send and receive money and shop online
  2. Charges very little except you make certain kinds of transactions or receive payment as a small business owner
  3. No cost to open an account
  4. Offers debit and credit cards
  5. Offers interactive social features and colorful emojis, making payments friendly and fun
  6. Works on iOS and Android devices.


  1. Venmo is only available in the U.S. 
  2. Has a $4,999.99 weekly limit for person-to-person transactions
  3. Has a $6,999.99 overall combined weekly spending limit for person-to-person transactions, merchant payments, and Venmo Mastercard debit purchases
  4. Not widely accepted at businesses as other forms of payment like debit cards, credit cards, or cash
  5. Charge a 3% fee for sending money via credit card
  6. It charges a 1.5% fee for the instant transfer of money to your external bank account or debit card
  7. Privacy settings may be difficult to navigate and transactions may be publicly visible to app users


In functionality, Venmo is very diverse in offering an array of services. 

The app makes it possible to make easy and seamless transactions. 

Though Venmo charges some fees for some of its services, you will find out that Venmo’s capabilities exceed any costs that may be incurred. 

We hope this post has been helpful. Kindly share and leave a comment in the section below. 

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