What is Venmo? Venmo is a digital wallet. You’ve heard of Venmo, and may use it.
the Venmo that’s for business isn’t the same thing. What’s more, if you use both, you’ll easily be able to keep personal and business transactions separate.
And this is new – Venmo for Business now accepts cryptocurrencies, such as Bitcoin.
What is Venmo?
Venmo is owned by PayPal and as such, you can use Venmo through PayPal. The original Venmo is an active community enjoyed by more than 60 million users. PayPal existed for 11 years before launching Venmo.
Using Venmo as a digital wallet, friends could easily make and take payments from each other, friends to friends or within a family. In addition to sending money to and from each other, they could use Venmo to make payments for all kinds of services, as another payment option. They could also get cash into an account instantly, using e check. The instant cash feature was a hugely popular service.
Venmo vs. Venmo for Business: What’s the Difference?
When Venmo launched, users were accepting Venmo quickly. Articles about its ease of use flooded the internet, and even more, people became to pay with Venmo – and not just to friends who use Venmo. That led to more articles, and more people accepting Venmo.
Company owners saw how easy it was to pay with Venmo, and tried to use it for their operations. But the “personal use” Venmo wasn’t a fit.
The Venmo for businesses shares features that Venmo has, but adapts the platform specifically for small business owners.
Using prompts an owner sets up a business profile. From the profile, the typical business transactions can take place. Venmo for Business can handle online sales on point of sale touchless sales. It can be linked to credit cards, debit cards and banks.
Can You Use Venmo for Business?
Once you set up a Venmo business profile, you can start to accept Venmo transactions for your business. You can accept payments from customers online or at a brick-and-mortar location.
As a payment option, it’s faster than credit card processing. You don’t need a credit card processor.
You can also use the business version of Venmo to purchase supplies or inventory for your business. This way, it will be easy to organize your taxes. The “business” Venmo will be separate from your personal Venmo.
Here’s a big advantage to the business profiles. Customers can search the business profiles. This is a way for more customers to find you.
How Does Venmo for Business Work?
Let’s say you already use PayPal when customers make a purchase. How is Venmo for Business different than PayPal? Which one should you choose?
First, let’s talk about similarities with PayPal. Both have a platform that uses IOS, Android and the Web. Both have payment methods that can use a credit or debit card, or bank transfer. The fees for credit card transfers are similar, 3% for Venmo and 2.9% + .30 for PayPal. A lot of individuals and businesses use either to make donations to non profits.
Here’s where they’re different. With Venmo, the debit card fee is zero; with PayPal it’s 2.9% + .30. The transfer limit for Venmo is $4,999.99; for PayPal, it’s up to $10,000 for a single transaction.
Using Venmo for Business
So should you start using it? For some business owners, the transfer limit is a deal-breaker. For other business owners, the pre-existing familiarity of the name – remember that community of 60 personal Venmo users – is a deal maker.
Can’t decide? Thinking about going to an app for in-person, touchless merchant transactions? Venmo recently added a QR kit. The QR kit makes it easy to get set up to do business transactions that way.
Using Venmo for Online Stores
You can connect your account to you most-commonly used Apps and websites.
Using Venmo for a Business App
You can accept online orders or do touchless business transactions.
Using Venmo In-Store with Approved Point of Sale Systems
You may already have a QR but if you don’t, Venmo for Business has a QR kit. The kit will lead you through the steps of setting up your unique QR code for customers to scan.
How to Set Up a Venmo Business Profile
- Find the Venmo for Business App.
- Tap the profile pic.
- Tap Create a Business Profile.
- Customize your profile, adding details about the services or products you provide.
- Publish your profile.
How Much Does It Cost?
Well, you knew there would be some processing fees. That’s common with payment processors. The first 30 days are free. Here’s how this one works:
- No fee to sign up, no monthly fee, no fee to send money.
- No charge for moving money from linked bank account or debit card. These transactions normally take 1-3 business days. If you want the option for an instant move, you’ll pay a 1% fee.
- A 3% fee for moving money using a linked credit card.
- After the 30-day free period, the fee per transaction is 1.9% + .10.
The Best Features of Venmo for Businesses
- No fee for debit cards.
- Quick money transfers are possible.
- The single transaction ($4,999.99) limit is a fit for many businesses.
- Name (branding) familiarity with personal Venmo users.
- The QR kit makes it easy to add this service for business purposes.
Advantages of Using Venmo Payments for Businesses
- Someone can search businesses and find your business profile. What business owner doesn’t like that?
- Easy to send and receive money from Venmo personal or business users.
- Venmo now accepts cryptocurrencies, such as Bitcoin.
- Money can be moved instantly (with a 1% transfer fee) between bank accounts.
- Typically faster than credit card processing.
Disadvantages of Accepting Venmo Payments for Businesses
- Some businesses don’t accept Venmo because they see the transaction limit ($4,999.99) as too low.
- You can’t pay with Venmo overseas. The service is currently only available in the US.
- Some companies don’t yet accept Venmo.
Alternatives to Venmo
You have options when choosing websites like Venmo as a payment processor for your company. There are all kinds of ways for customers to make payments for goods and services.
Which one should you choose?
The checkout option you choose must fit your company’s needs, and also be the payment method preferred by the people who use businesses.
- PayPal: The PayPal checkout is fast and seamless. PayPal checkout can be used internationally.
- Apple Pay: Works with all Apple devices. The way it can be used include online, in stores and thru Apps.
- Braintree: Used by merchants in 45 countries, and can service payments of 130+ currencies. Braintree is a top choice for those who conduct business internationally. Braintree is the top pick for those businesses.
- Google Pay: A mobile payment app which replaced Android Pay and Google Wallet.
- Zelle: A digital payment network owned by Bank of America, JPMorgan Chase, Capital One, CitiBank, Wells Fargo and others.
Why do some people say you shouldn’t use Venmo for your business?
People who say Venmo isn’t for businesses to use were most likely those who tried to use the original version for business. Someone had an issue with payments trying to use the original Venmo, which wasn’t set up for businesses. Venmo users shared the experiences citing problems with payments.
Which wasn’t fair, since the original version wasn’t structured for merchants payments. In development, the Venmo strategists for the venture looked at what merchants said in complaints and fixed the process.
Using the original platform, individual people, often family members, could send and receive money amongst themselves. They could make purchases, and often shared reviews of the purchases and buying experience with other Venmo service users.
The For Business version is all geared to facilitate each step of the customer to merchants’ experience. The business profiles are a way to boost your company presence. And the services and fees included are designed to facilitate the payment process for a company, both accepting and remitting with seamless transactions.
How can Venmo be used for business?
You already know this – few people are writing checks. Credit card processors – as a single piece of equipment – are replaced by processors that can handle credit and debit cards.
When a company is accepting payment or making a payment, having a speedy process is a benefit to all. As an option for a payment, the Business version is a great choice for merchants.
How do I open a Venmo account for my business use?
It takes just a few steps before you get acceptance for a business profile. Go to the Venmo App or site. Using the prompts, create a business profile. You can use a profile pic and a background pic. Add you details. Accept the terms and user agreement. You’ll need to include your email address. That’s it! Publish your profile.
Is Venmo better than PayPal for small businesses?
Each business is different, depending on the goods and services offered. The option you choose may depend on the typical amount for the payments you receive. Is that number for average payments greater than $5,000. Then it’s PayPal for those goods and services.