Estimated reading time: 4 minutes
The discovery of the internet has been one of man’s greatest inventions. If you are yet to try out e-commerce, then you must be the world’s last unicorn. Online transactions have literally redefined all matters shopping and trading. Whether you are a business owner or an avid shopper, online payment systems will blow your socks off! With convenience, in terms of both time and energy, what’s not to like?
If you’re looking to make the leap of faith in the mobile modes of payment, you should try out Venmo. Venmo app has become one of the most preferred apps for electronically sending money from one person to another.
The History of Venmo
As with most genius ideas, Venmo’s conception was also relatively unconventional. Created by two roommates from the University of Pennsylvania, Andrew Kortina and Iqram Magdon-Ismail, Venmo was a by-product of the duo’s frustrations with the inadequacy of regular point-of-sale software. They were helping their friend setup a frozen yogurt store, but the launch process became complicated. However, they later developed a prototype for transferring funds through text via text messages after getting inspiration at a local music concert.
Andrew and Iqram’s tech child grew to such great heights that it garnered Braintree’s attention, a mobile and web payment platform. Venmo was then acquired by Braintree in 2012, and later by PayPal, one of the leading pioneers of web payment systems. PayPal pushed Venmo further into the limelight when they announced the slogan “Pay with Venmo.” Customers were soon using the app at retailer stores instead of their credit and debit cards, or even cash.
How Does Venmo Work?
You are probably curious to get started on your first online transaction, but you have no idea how it works. Not to worry, we’re going to discuss how you can get yourself acquainted with this popular app. First thing’s first, Venmo doesn’t charge any monthly or annual fees, neither will you be charged for sending or receiving any payments. Instead, it generates income through other services that enable users to pay with Venmo on other applications. As the user, you will enjoy transactions free of charge, while the business will be charged a 2.9% fee.
Another source of income for Venmo is the 3% fee it charges for credit card transactions. But how does this work? Venmo has partnered with MasterCard and offers debit cards to its users. This means that you can use your Venmo balance to make purchases in any American store that accepts MasterCard. Isn’t this just fantastic news?
Who Are Venmo’s Competitors?
As with any industry, a little healthy competition is expected. Numerous online payment systems have emerged since Venmo entered the market. Below is a list of some of the high-ranking competitors to Venmo.
- Google Pay
One of the simplest and fastest ways to make your online and app payments is through Google Pay on your android device. Like Venmo, you can easily send money to your friends and family, split bills, all without reaching for your wallet! You can also link your credit and debit cards, as well as PayPal accounts with Google Pay. You are guaranteed safe and secure mobile payments since your card details are encrypted before being shared with online stores. What’s even better is that you can speed through checkout at stores that accept contactless payments.
- Apple Pay
Not to be left behind, Apple Inc. created Apple Pay, a mobile payment, and digital wallet service. As the name suggests, it is available to users using iOS devices such as iPads, iPhones, Macs, and Apple Watch. Since it’s a contactless payment mode, users can avoid using their credit or debit cards in retail stores. Apple Pay has additional authentication systems such as the Touch ID, Face ID, and passcode that its users religiously enjoy. It also supports international payment schemes such as Visa, MasterCard, and American Express.
Other online payment systems to look into include Popmoney, Zelle, and Square Cash.
Final Thoughts
Whether you’re a shopaholic or an avid gamer, online payment systems are here for your benefit. In these modern times, you can use online payment gateways to top up your favorite MMO subscription or have some fun at an online casino that takes MasterCard without worrying about security and focusing on the fun!
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