Venmo is another popular mobile app established to make transactions easier among people, it has lots of benefits and a few shortfalls. This article will familiarize you with the app, how it works, the pros and cons, and answer questions on “What is the downside of Venmo” which many who are new to the system always throw on the search engine before deciding finally if they should give it a try.
It is good practice to read about the reviews of any product before you jump in to join the bandwagon. Losing money is not one of the funniest experiences even for those who have lots of it so for a transaction app you need to scrutinize your decision well.
Before we consider the cons or disadvantages of the Venmo app, let’s educate ourselves some more on the subject.
What is Venmo app?
Venmo is more of a payment portal, a mobile app that enables money transactions where people can send and receive funds using the mobile app.
It is similar to platforms like PayPal and makes transactions seamless, you can receive and send money to friends, families, and customers.
In the campus environment, you’d find a lot of people using this app and most fancy it because of the ease of making and receiving payments.
Despite the widespread acceptance, it falls short in a number of ways, it can get hacked leaving your personal information and hard-earned money at risk and it is never as safe as your traditional bank account or app.
Chances are that a number of persons can get scammed while using the app and sometimes the platform can charge cutthroat fees especially if you use their gift cards feature. Continue reading to find out how venom works and how you can transact easily and safely.
How Venmo works
This payment processing app enables users to pay and get paid using their mobile phones. Venmo is synced with a debit card or bank account from which money can be sent to others. It also allows users to share payments on social media. Some of the pros and cons of Venmo are outlined below:
It provides a digital wallet for easy funds transfers that works using the user’s phone number or email.
The app is available across platforms and devices likr IOS, android, windows, etc.
No fee for personal use but attracts 3% charge for business names or corporate bodies.
Ideal for transacting goods and services and for sorting out bills.
It is a very convenient method of sending and receiving money to friends and well-wishers, transactions can be concluded in a jiffy.
Venmo is flexible, you can pay for just anything with the app, be it pizza, lunch, rent, goods, or services.
For individuals, it does not attract any fee except for businesses where some charges apply.
What are the Major Downsides of using Venmo?
If Venmo makes transactions easy and fast then what is the catch, could there be a downside to using Venmo that wil might make anyone hate using it? The answer is yes.
The first major downside is that the app is linked to your bank app which can lure you over to overspend on impulse buying because of the ease with which transactions can be carried out on the app.
There are reported cases of privacy breaches while using this app, your spending is visible on your profile and this has many bizarre consequences.
This happens because the transactions are configured by default to be visible to everyone except you make adjustments to the settings.
Also, cases of fraud have been reported a number of times by users, people can fake a payment without making the payment and others can deny it even after receiving funds. It is good you transact carefully while using the platform and do more of these deals with people you already know.
Another major setback is the fear that the company might go extinct in the future and people will end up losing money stores on the platform. They are not like the traditional banks that is well regulated and in the event of bankruptcy the governing body will step in for those who are affected.
How to use Venmo safely
To be safe while transacting on venom you have to do the following:
1. The first step is to avoid using venom with total strangers. Using the app with only people you know is a way you can be sure of using it with peace of mind.
2. Always transact within your budget as apps like this can make you overspend and can negatively affect your credit score. See our list of other things that hurt your credit score.
3. Be careful with whom you share your transaction history to avoid exposing you to unnecessary risk.
We have carefully answered questions on “What is the downside of Venmo”. We pointed out the pros and cons of the Venmo app and how you can safely use Venmo to transact and send money to friends and loved ones.