Key Points:
- 50% of Venmo users are 25 to 34 years old
- Venmo is a mobile peer-to-peer (P2P) payment app that enables users to send and receive money
- The Venmo app is linked to your bank account or debit/credit card, which allows them to transfer funds between Venmo accounts
With the rise of digital payment services, it has become easier and more convenient to make payments from wherever you are in the world on your smartphone. As a result, both individuals and business owners look for the safest, most reliable, yet versatile online payment channels.
Venmo has around 40 million active users. Connected to your credit cards and bank accounts, Venmo allows you to make real-time transactions, making payments effortless and contactless. This blog post will cover how you can adopt the benefits of Venmo for your business and the necessary information you need to know about it.
Table of Contents
What is Venmo & How Does it Work?
Venmo is a digital wallet that allows for an easy, contactless payment solution for small businesses. It is also a mobile banking app where customers can link a credit or debit card and send money to friends or companies.
In addition, it can be optimized for online or in-person transactions through QR codes and the Venmo smartphone app.
Can you use Venmo for business?
Venmo is a great way to offer contactless payment for small businesses. In just a few steps, you can use Venmo for your eCommerce business:
- Download the Venmo app and choose the “Business” option
- Click “Sign Up”
- On the next screen, select “Get Started”
- Insert your name and email address
- Create a password
- Click “Agree”
- Enter your mobile phone number and click “Send Code”
- Enter the four-digit code you receive from Venmo to verify your phone number, and then select “Submit Code”
In the following steps, we’ll go over how to complete your business profile to get your account verified to accept Venmo payments.
How to create a business profile application and get verified
This step is relatively easy if you have completed the steps already mentioned. Venmo would request that you enter the following business information.
- Your employer identification number (EIN) or social security number (SSN)
- If you are an EIN user, you would be asked if you are a partnership or corporation
- A business display name
- A description of your business and business category
- Business address
- Optional public address information
Most of the time, Venmo automatically verifies an EIN, business name, and address. But if this is not the case, you would be asked to send your verification documentation.
These are the other necessary things you should know about opening a Venmo business account, such as:
- You can start using your business account if you are not yet verified. However, you will have limitations on your bank account transfers.
- You are allowed to have only one Venmo business profile
- Venmo and Venmo for business are only available for U.S residents with U.S bank accounts
- You will use the exact login details for both your personal and business Venmo accounts
Now, you’re all set to get your account up and running so you can use Venmo for contactless payment for your eCommerce business. But you’re not there yet – read along to understand the fees and tips for using Venmo for business.
Venmo for Business Fees
Venmo business accounts charge transaction/processing fees for each purchase. Venmo fees include 1.9% + $0.10 per transaction for purchases made using the Venmo app and a QR code.
For example, if you receive $100, $2 would be deducted, and you will receive $98 instead. This charge is known as the seller transaction fee. Note that this fee charged from business profiles helps Venmo continue providing and developing the service.
Venmo for business restrictions
Venmo business account limits how much money you can send, receive or transfer to your bank account. Below are Venmo business profiles' limitations on purchase and transfer transactions for credit card processing.
Purchases have the following limits:
- $24,999.99 per week ($2,499.99 without identity verification)
- $2,999.99 per single transaction
- Transfers to your bank account have the following limits:
- Up to $49,999.99 per week ($999.99 without identity verification)
- Up to $50,000 for instant transfers per transaction
Understanding these restrictions will help you know if Venmo is right for your eCommerce business.
Related post: Square vs. PayPal: What You Need to Know
Benefits of Venmo for Businesses
As a business owner, Venmo offers a wide range of benefits that you use to scale to business. We'll cover some of the benefits here in this section, so you can decide if Venmo is right for you.
1. Reduce cart abandonment and boost conversion
Cart abandonment occurs when a buyer does not checkout and complete the purchase process while shopping online. One of the reasons users abandon their carts is payment issues. This factor could vary from payment security to the option of re-entering their card numbers into the browser.
Buyers prefer a trusted payment method other than the ones available, leaving eCommerce merchants no other choice but to abandon their carts. This action can make eCommerce merchants lose many sales. By offering your customers the option of paying with Venmo, you can provide more security, and customers will not need to re-enter their payment information.
2. More consumers are using Venmo
Venmo has over 40 million active users, and many people rely on it for payment transactions. This fact means that most of your customers already use Venmo, and using Venmo as a business owner will make transactions easy for both you and your customers.
Venmo is an amicable payment option and allows users to pay you the same way they pay friends on the app. Additionally, Venmo prides itself on allowing customers to complete their purchases quickly and easily with its own payment processor.
3. Reach more Gen-Z and Millennial shoppers
Features that set Venmo out from other payment options are ease of use and convenience. It is also known for its other unique social features and popularity among the Gen-Zs and millennials inclined to digital payment options.
Venmo allows users to personalize peer-to-peer payments and transact via several mediums like the Venmo app, available on both iPhones and Android. Venmo users can share their purchases on their accounts for others to see. This fact can help you draw attention to your store and automatically boost sales.
Venmo for Business with Easyship
Venmo is an app that has redefined online payment and transactions. A mobile peer-to-peer (P2P) payment platform enables users to turn their smartphones into wallets and send and receive cash via Venmo. Businesses are adopting Venmo to make payment easy and secure.
Just like Venmo helps you handle your payment transactions, Easyship helps to organize and coordinate your shipping activity so that you can focus on other aspects of your business and give your customers an optimal experience.
Easyship offers the following features:
- Easyship Shipping Dashboard: Manage all your orders and shipping activity from our shipping dashboard. Import orders, upload CSVs or sync directly from your eCommerce store.
- Optimized Store Checkout: Show the cheapest, fastest, and best value shipping options at your store’s checkout. Now, you can offer your customers more shipping options to be flexible with your customers.
- Global Fulfillment: Easyship has warehouse partners on four continents so that you can reach your customers all across the world. Plus, with shorter delivery times, you can guarantee future sales.
Ready to ship? Sign up for a FREE Easyship account and get instant access to a team of shipping experts prepared to help you with all your domestic and international shipping needs
Venmo for Businesses FAQ
Is Venmo free for business?
Yes, creating a Venmo account is free, and you are not charged monthly for operating it. However, Venmo charges a fee for processing payments like other digital payment platforms for business.
How do I avoid business fees on Venmo?
If you use your credit card to send money, Venmo will charge you a three-percent fee. But you can avoid fees by sending money from your Venmo balance or bank account.
Is Venmo better than PayPal?
Both are good options for your business, but Venmo is better for small businesses. Always do your research first before deciding between the two.
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