Sending Money to Your Social Circle
The number of ways to send money to people continues to increase, especially since Google announced that consumers will be able to attach money in emails through Google Wallet.
Venmo, a smartphone app, is trying to streamline the way people wire money to one another. Referred to as a combination of Facebook and PayPal, Venmo allows you to transfer money to other people in your social circle and “trust” people to withdraw money from your accounts.
Venmo transactions are displayed in the network like a timeline in Facebook. If you don’t want other people seeing this information, you can choose to keep it private. Money transferred in the system is left into your Venmo account until you decide to cash it out, similar to how eBay payments are left in your PayPal account. You can transfer the money overnight to your bank during weekdays and use it as cash. All of this is done through your smartphone.
The Venmo app is free to use and download, but you need to link a bank account and a debit card to it. If you link a credit card, you will have to pay a 3% transaction fee. Venmo gives you the opportunity to send money to people on the go and keep track of your transactions.
About Bill Hardekopf
Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.