How Does Venmo Make Money? Here Are 8 Ways 

RADICALFIRE.COM

Floral

Venmo is a leading U.S. mobile payment app. It lets people aged 18 and over send each other money for free.

While Venmo may appear to be a free service, it can be pretty expensive if you don’t understand how it works as a business. So, how exactly does Venmo make money from  its customers?

1

Credit Card Purchase

Sending $100 to a friend via the credit card connected to your Venmo account would cost $3. That might not sound like much, but it adds up  over time.

2

Pay-With-Venmo Transactions

While it’s free for the user, Venmo charges the merchant 1.9% of the purchase price, plus a flat $0.10 fee on  every transaction.

3

Instant Transfers

Standard withdrawals don’t cost a cent, but Venmo takes 1.75% of anything you send via Instant Transfer.

4

Credit Card Interest & Fees

The trouble comes when you can’t repay the money and fall foul of their notoriously expensive interest rates and late fees.

Floral

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