Review: Venmo

For those moments Ven Mo people owe you money than they should:

Say you need to pay your friend back for that Netsky concert ticket that she got you. How are you going to do it? Pay in cash? You don't have the exact amount so that's not going to fly¹. Check? What is this, the 9th century? Unfortunately these days, it seems like there's a tradeoff between being able to conveniently send your friends money and to do it without having to pay steep fees.

Enter Venmo. A popular web and mobile app (iPhone and Android) that allows you to send money to your friends. Since the selling point is pretty short (unlike in my SmartyPig post), let's get our pros and cons on.

Pros:

• Low fee structure. Don't just take it from me. See for yourself. For those of you allergic to link clicking, it's free if you pay using a Venmo balance, debit card or bank transfer and 3% if you pay with a credit card. So far these are the lowest fees I've found for companies that offer a similar service.
• Social network connectivity. Tired of texting your friends to get their account names for random apps² which they've inevitably forgotten immediately after signing up. Well you don't have to deal with that ruckus when you're using Venmo. Connect your account to Facebook or Twitter to quickly find your friends.
• Signing/Referral bonus. Sign up using this link and get $1 when you create a Venmo account.
• "Trusted friend" capability. Do your friends always forget to pay you back for things³? Have them join Venmo and make you a trusted friend. Then you can charge them for expenses instead of waiting for them to pay you.
• Bank grade security. More here.
• Easy to use mobile app. Always forget to pay people back for things. With Venmo's mobile apps you can do it on the spot.

Check out this smooth mobile interface.

That's quite the pro list. Even better, the cons are pretty minor.

Cons:

• Their slogan isn't Ven-Mo Money Mo Problems.
• Balance are not FDIC insured⁴. Your Venmo balance is not FDIC insured. If you're concerned about this, just cash out your any balance you may have to your checking account as soon as possible.
• Uncertainty over whether low rates are here to stay. Mind you, this is purely speculative because I don't work for Venmo and they haven't released information of this nature, but I believe it's possible their rates may increase in the future. Why? By offering some of their services for free they're operating at a loss. You may say that Venmo is trying to become profitable through their business partnerships. Here's an informative Quora post on whether Venmo will be viable in the long term⁵. For now though, know that you're getting the best rates out there.

Conclusion:
Whether you're frequently in debt to your friends or the other way around, Venmo is a great tool to transfer money conveniently. Use online, or on your phone to get some of the best rates available. Don't forget, sign up here to get a $1 bonus!

And yes, you guessed it, this sparkling review results in Venmo earning a green thumb of their own.

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1. Unless you're one of those people who just suggests the amount of money you have on you at that very moment even though you owe your friend more. Don't be that person.
2. I make it easy on my friends by always snagging "DoglvrXOXOXO".
3. If they do, download Venmo to make your life easier instead of say, flushing them down a toilet. Warning: Link has profanity.
4. Covered in user agreement.
5. Also speculative.