Welcome to Mozy’s App Profile, where we introduce new programs seeking to improve the way we live and socialize. This week, Mozy takes a look at Venmo, an app that enables users to quickly and seamlessly exchange money with each other.
There have been a lot of exciting advances in mobile payment options, especially in the retail and commerce industries.
For instance, Square Wallet enables users to setup house accounts with their favorite stores. Then, using its GPS technology, users don’t even have to take out their phone to make a purchase (they just have to tell the cashier their name).
With a similar pre-setup account, Uber, a GPS tracking taxi service, removes the payment process entirely from the experience, instead focusing on locating a taxi and then (optional) rating the driver.
There are many other prime examples of advancing this credit card-free atmosphere—except for a person-to-person exchange. And that’s where Venmo comes into play. While PayPal is more tailored for interacting with people you do not know or trust (i.e. eBay sellers), Venmo enables users to quickly and seamlessly exchange money with each other.
But what is also unique about Venmo is that it makes payment social.
“Every payment includes a personal note explaining the social context behind the payment,” said Venmo co-founder Andrew Kortina. “People can share these payment notes with their friends, creating a news feed of all the things your friends are doing together when they happen to pay each other back: going to lunch with colleagues, splitting dinner or drinks, attending concerts, taking trips, or just sending friends money for their birthdays.”
The Venmo iPhone and Android apps also connect your phone with your bank, debit or credit card, and you can instantly send money to anyone for free. When you receive money, you can withdraw it to your bank account overnight.
Even though Venmo is more or less the first of its kind, that hasn’t stopped Kortina from thinking even further down the line.
“We’re continuing to improve [the person-to-person] experience, but now also expanding to other types of payments,” said Kortina. “For example, Venmo Touch allows you to pay with one touch inside different apps on your mobile device, so you don’t have to constantly re-type your credit card details.”
While Venmo replaces a lot of transactions that might previously have used cash, it also may enable new spending behaviors. For example, next time you want to send a friend who’s home sick $5 for chicken soup, your smartphone makes possible what wasn’t possible with cash.