Venmo

Venmo
Original author(s) Andrew Kortina and Iqram Magdon-Ismail
Developer(s) Venmo, LLC (Subsidiary of PayPal)
Initial release 2009
Platform iOS
Android
Web
Website www.venmo.com

Venmo is a mobile payment service that is now a part of PayPal. It allows users to transfer money between one another using a mobile phone app or web interface. In the third quarter of 2014, Venmo processed $700 million of payments between people.[1] Venmo strictly prohibits the use of their service to purchase merchandise.[2]

Service

Venmo is a mobile payment service that lets users transfer money to each other. Users sign up using their mobile app or on the Venmo website and they can find others who have created an account.

Users have a Venmo balance that is used for their transactions. They can link their bank accounts, debit cards, or credit cards to their Venmo account. Credit cards have a 3% fee for each transaction.[3] Venmo has claimed that its security is bank grade, and that personal and financial data are encrypted and protected on secure servers to guard against any unauthorized transactions,[4] however, these security claims have been questioned by journalists, security researchers, and the California Office of Business Oversight.[5][6][7]

A unique aspect of Venmo is its social aspect. When a user makes a transaction, the transaction details (stripped of the payment amount) are shared on the user's "news feed" and to the user's network of friends.[8] The transactions can be made private, but most users do not change the privacy settings.[9]

History

Venmo was founded by two friends, Andrew Kortina and Iqram Magdon-Ismail, who met as freshman roommates at the University of Pennsylvania. According to Kortina, the idea of Venmo originated when Magdon-Ismail forgot his wallet during a trip to visit Kortina. The process of settling their accounts was a hassle, so they started working on a way to send money through mobile devices. Their original prototype sent money through text messages, but they eventually transitioned from text messages to a mobile app.[10]

In 2012, Braintree acquired Venmo for $26.2 million. In 2013, PayPal acquired Braintree for $800 million.[10] PayPal announced in October 2015 that it plans to let merchants accept payments through Venmo.[11]

See also

References

  1. ↑ Pullen, John Patrick (December 15, 2014). "You Asked: What Is Venmo?". Time Magazine. Retrieved April 18, 2015.
  2. ↑ "Venmo". Venmo.com. Retrieved 2016-03-23.
  3. ↑ https://venmo.com/about/fees/
  4. ↑ "Venmo: App to make and share payments". Fiscal Today. Retrieved 24 June 2015.
  5. ↑ "Venmo security: it's not as strong as the company wants you to think". Slate. 2015-02-01. Retrieved 2015-10-23.
  6. ↑ "Security research of a social payment app" (PDF). MIT CSAIL. 2014-05-14. Retrieved 2015-10-23.
  7. ↑ "Venmo App: Users Raise Questions About the Security of Peer-to-Peer Money Transfer Service". ABC News (USA). 2015-03-18. Retrieved 2015-10-23.
  8. ↑ Moorthy, Neelesh (March 25, 2015). "Cash, credit or mobile app: the rise of Venmo". The Chronicle. Retrieved April 18, 2015.
  9. ↑ Wener-Fligner, Zach (March 20, 2015). "The emoji of Venmo: food, booze, partying, and, occasionally, rent". Quartz. Retrieved April 18, 2015.
  10. 1 2 Gillette, Felix (November 20, 2014). "Cash Is for Losers!". Bloomberg Business. Retrieved April 18, 2015.
  11. ↑ Rao, Leena (28 October 2015). "You will soon be able to shop using Venmo". Fortune. Retrieved 11 November 2015.

External links

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