Venmo charges users for selling goods and services

Venmo, a payment app owned

PayPal Holdings Co., Ltd.

PYPL -1.23%

Soon, users will be able to sell products and services for a fee with their personal accounts.

Previous rules of the app prohibited users from receiving money for commerce through their personal Venmo profile. Users suspected of violating the policy may have their account suspended.

The new policy, which was lettered to you regarding the update of the Terms of Service, will come into effect on July 20th.

According to a Venmo spokeswoman, the latest changes will allow users who do not want to create a business profile to receive money for goods and services without worrying about violating the rules. You will be charged the same 1.9% and dime charges that apply to customers who use your business profile.

Change The latest attempt by PayPal Benefit from Venmo’s vast user base. Last year, the company rolled out the first physical credit card under the Venmo brand, Sell ​​QR code A flexible cashback rewards program on the front of the card.

Venmo is one of the most popular Digital finance app In the United States, new services, such as depositing stimulating checks directly into a Venmo account during a pandemic, are more than offsetting the number of people using the app to split bills at bars and restaurants. Has won.

‘I used it for 10 years [free] no problem. I thought it would end at some point. ”

— Joe Johnson, Venmo user

PayPal CEO Dan Schulman said in a February earnings call that Venmo’s user base would grow 32% in 2020 to nearly 70 million active accounts. Approximately $ 51 billion was sent via Venmo in the first quarter, an increase of 63% over the previous year. PayPal expects Venmo to generate approximately $ 900 million in revenue in 2021.

The announcement on Thursday met online with confusion from customers who didn’t understand how the app would decide which transaction to charge. Some speculated that the company would use the messages people add to their payments to determine if the money was for commerce.

According to a company spokeswoman, Venmo will add a toggle to the user interface to allow customers to indicate whether they are sending money for goods or services. These transactions are covered by the app’s purchase protection plan. This allows customers to challenge the price of purchases that do not arrive or are not as expected.

Transaction fees are automatically deducted from the remittance amount.

Joe Johnson, a 58-year-old fitness trainer who owns a training facility in Nashville, Tennessee, uses Venmo to receive payments from clients and pay contract employees. He estimates that at least 80% of customers pay through Venmo and receive multiple payments daily through the app. “I receive CashApp, Zelle, credit cards, checks and cash, but people want to pay,” he said. “But Venmo is in control now.”

Johnson said he was a Venmo customer from the early days and didn’t start creating business profiles, but as long as the price isn’t too high, he’s okay to pay for it. He said he would include new costs when raising the price of the next incoming customer.

“I’ve been using it for 10 years [free] No problem, “he said. “I thought it would end someday.”

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Venmo charges users for selling goods and services

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