Soon you won’t have to set up a separate profile just to sell stuff through Venmo, even if you’ll still be hooked on the same transaction fee that company profiles already pay. The new policy will take effect on July 20th, according to a Sunday email to users announcing the app’s updated terms of service.
Venmo, a digital payment app owned by PayPal, has previously banned users from receiving payment for business transactions through their personal accounts. Anyone suspected of violating this policy risked suspending their accounts.
Starting July 20th, any user can change whether the money they send is for a good or a service. Transactions marked as qualifying for Venmo’s purchase protection plan, and the seller will pay the same 1.9% plus a 10 percent fee applied to company profiles, a Venmo spokesman said. in the Wall Street Journal. Venmo will automatically deduct the transaction fee from the amount sent, depending on the outlet.
It makes sense for Venmo to simplify the transaction process so users don’t have to deal with multiple accounts. The Venmo user base shot up during the coronavirus pandemic as people increasingly turned to digital payment systems and the app added new features such as allowing the direct deposit of stimulus controls, the Journal reports. But there are still many other digital payment apps to choose if users decide that Venmo is no longer the most convenient to use.
Of course, this change also helps Venmo’s bottom line, which has already seen a huge leap. In February, PayPal has informed that Venmo’s user base will increase 32% in 2020 to about 70 million assets users. Net income also rose to $ 1.57 billion in the fourth quarter, from $ 507 million the year before. Dan Schulman, CEO of PayPal, first said investors that Venmo’s revenues are expected to reach $ 900 million by 2021.